Canada: Implementation of Surtax on Certain Steel Goods

Effective June 27, 2025, under the Order Imposing a Surtax on the Importation of Certain Steel Goods, certain steel goods are subject to a 50% surtax when imported into Canada for commercial purposes. The Order Amending the Order Imposing a Surtax on the Importation of Certain Steel Goods was introduced, updating conditions effective August 1, 2025.

Which steel goods are affected?

This Order imposes temporary trade measures in the form of separate tariff rate quotas (TRQs), that are valid for one year, on imports of:

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.

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.

When does the 50% surtax apply?

The surtax will apply if either condition is met:

Quota exceeded: The quantity of goods imported, for a class of steel products, exceeds the 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.

How can I import goods under the TRQ without paying the surtax?

You must have a valid shipment-specific import permit to declare these importations are under the TRQ.
No import permits will be issued once applicable limits have been reached.
For application details, please see Notice to importers: Item 82 – Steel goods – Serial No. 1142.

Can I get a refund if I paid the surtax?

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.

Are there any exceptions to the surtax?

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.
Steel goods from FTA countries that were in transit on or before August 1, 2025.
Proof required: Importers must be able to provide shipping documentation to the CBSA if requested.

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.
Proof required: Origin documentation (e.g., commercial invoice) indicating the country of origin of the goods is required.

Casual goods

Goods classified under a tariff item of Chapter 98 of Canada’s Customs Tariff Schedule

Are there programs to recover surtax costs?

Yes. Importers may use:

Duties Relief Program
Duty Drawback Program

These apply to surtax paid or owed by Canadian businesses, subject to the Canada-United States-Mexico Agreement (CUSMA) provisions.

Additional Information

Customs Notice 25-24: Order Imposing a Surtax on the Importation of Certain Steel Goods