The Government of Canada announced that it will be extending key steel and aluminum tariff measures for one year.
Canada will extend its steel tariff-rate quotas (TRQ) regime for imports from non-CUSMA partners, and the existing horizontal tariff relief for eligible steel and aluminum products from the United States (U.S.), and additionally, for eligible steel products subject to derivative tariffs. These measures will be extended to June 27 and June 30, 2027, respectively.
Current quota levels for the TRQs will continue to be based on 20% of 2024 volumes for partners without a free trade agreement with Canada, and 75% for partners with a free trade agreement in force with Canada. Imports exceeding quota limits will continue to be subject to a 50% tariff. Canada will also continue to exempt its CUSMA partners, the United States and Mexico, from the TRQs.
Following the planned extension of steel TRQs, the government intends to initiate efforts towards the inclusion of an allocations-based approach for the administration of quota for certain product classes. Stakeholders, including producers and importers, will be offered the opportunity to share their views on the approach, reflecting the government's ongoing commitment to review and improve the TRQ framework.
Link to news release: Canada to extend steel and aluminum tariff measures to support workers and businesses