The Government of Canada has implemented a 25% surtax on certain steel derivative goods imported into Canada for commercial purposes. The surtax is effective December 26, 2025.
This surtax would apply in addition to any regular customs duties, anti-dumping or countervailing duties, and GST, where applicable
What goods are affected:
The surtax applies to specific steel derivative products listed in the government’s schedule. These are generally finished or semi finished products that are made from steel rather than raw steel itself. Full list of steel derivative products subject to the 25% surtax can be found at: List of steel derivative products subject to 25 per cent tariffs effective December 26, 2025 - Canada.ca
Key points for importers:
The surtax applies regardless of the country of origin.
The surtax applies even where goods normally qualify for duty free or reduced duty treatment.
Goods entered under Chapter 99 tariff items remain subject to the surtax if the underlying product is listed as a steel derivative good.
Exceptions:
The surtax would not apply in the following situations:
Goods that were in transit to Canada on December 26, 2025, meaning they were bound for Canada and under the control of a carrier on that date. Importers must be able to support in transit status with standard shipping documents such as bills of lading or cargo control documents.
Goods already subject to another Canadian steel related surtax, as Canada applies only one steel surtax per product.
Casual, non-commercial goods.
Goods properly classified under Chapter 98 of Canada’s Customs Tariff.
Certain goods imported before July 1, 2026, for use in the manufacture of motor vehicles, vehicle chassis, or related parts and accessories.
Certain goods imported before July 1, 2026, for use in aircraft, spacecraft, or related parts.
Certain utility wind towers imported for qualifying energy projects located west of the Ontario Manitoba border.
Next steps for importers:
Review whether your products may fall within the steel derivative goods list.
Confirm tariff classification, especially where Chapters 98 or 99 may apply.
Review shipment timelines for goods arriving near the effective date.
For more information, please refer to the following link: Customs Notice 25-33: Steel Derivative Goods Surtax Order
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