Canada extends 50% surtax on certain steel goods
Under the Order Imposing a Surtax on the Importation of Certain Steel Goods, Canada implemented a 50% surtax on certain imported steel products until June 27, 2025. The Order Amending the Order Imposing a Surtax on the Importation of Certain Steel Goods (SOR/2026-0119) extends the surtax until June 27, 2027.
The surtax applies to certain steel imports when tariff rate quota (TRQ) limits or country-specific allocations are exceeded.
This Order imposes temporary trade measures in the form of separate tariff rate quotas (TRQs), that are valid for one year, on imports of:Â
- Flat, long, pipe and tube, semi-finished, and stainless steel products. See Schedule I of the Order for a complete list of products by 6-digit Harmonized System (HS) code.
- From June 27, 2025 to July 31, 2025 — applies when these goods originate from countries without a free trade agreement with Canada.
- From August 1, 2025 onward — applies when these goods originate from any country except Canada, the United States or Mexico.Â
The annual quota for each class of steel product is divided into quarterly periods, except for goods imported from FTA countries which undergo a transition period before entering the second quarter, with unused quantities from previous periods being carried forward into the following period. Additionally, the available quota in each quarter is subject to a quantity limit per country of origin.Â
The surtax will apply if either condition is met:
- Quota exceeded: The quantity of imported goods for a class of steel products exceeds the applicable quarterly limit posted in the Orders.
- Country-specific limit exceeded: For a given quarterly period, a class of steel products that originate in the same country that exceeds the limit – as outlined in the Orders.
Important: Impacted steel goods originating from a country that does not have a free trade agreement with Canada, from June 27, 2025 to July 31, 2025 or from any country except Canada, the United States, or Mexico from August 1, 2025 onward, are subject to the surtax even when exported from a non-subject country.Â
- Importers must obtain a valid, shipment-specific import permit to declare these importations are under the TRQ. Goods imported within the available quota under a valid permit are not subject to the surtax.
- No import permits will be issued once the applicable quota has been reached.
- For application details, please see Notice to importers: Item 82 – Steel goods – Serial No. 1163.
Yes. If eligible.
- Apply for a shipment-specific import permit from Global Affairs Canada (GAC) retroactively.
- Once issued, request a refund from the Canada Border Services Agency (CBSA) for the amount of surtax paid on that shipment.
Yes. The surtax is not applicable in the following cases:
Goods in Transit
- Steel goods from non-FTA countries that were in transit to Canada on or before June 27, 2025.Â
- Steel goods from FTA countries that were in transit on or before August 1, 2025.Â
- Proof required: Importers must be able to provide shipping documentation to the CBSA if requested.Â
Goods from Free Trade Agreement (FTA) Countries
- Steel goods originating from countries with a free trade agreement with Canada are exempt from June 27, 2025 to July 31, 2025 only.
- Steel goods originating in Canada, the United States, or Mexico are exempt.Â
- Proof required: Origin documentation (e.g., commercial invoice) indicating the country of origin of the goods is required.
Other exempt goods
- Casual goods
- Goods classified under a tariff item of Chapter 98 of Canada’s Customs Tariff Schedule
Yes. Importers may use:
Duties Relief Program
Duty Drawback ProgramÂ
These apply to surtax paid or owed by Canadian businesses, subject to the Canada-United States-Mexico Agreement (CUSMA) provisions.
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