Canada announced new actions which will begin on December 26, 2025, to strengthen and protect the domestic steel sector:
Canada will further limit foreign steel imports to ensure Canadian producers have better access to the domestic market:
Tariff rate quotas (TRQs) for countries without a free trade agreement will drop from 50% to 20% of 2024 levels; imports above the limit will continue to face a 50% surtax.
TRQs for countries with a free trade agreement will decrease from 100% to 75% of 2024 levels, with the same 50% surtax on over-quota imports.
CUSMA partners (U.S. and Mexico) remain exempt.
New Tariff on Steel Derivatives:
A 25% tariff will apply to the full value of listed steel derivative products from all countries.
The initial list targets products with a high steel content and covers over $10 billion in imports.
The list may be updated to reflect market conditions.
Steel Derivative Products Categories
Certain shapes of iron/non-alloy steel
Doors and windows
Wire, ropes, cables, and chains
Fasteners (e.g., nails, screws)
Structures (e.g., prefabricated buildings, bridges, and wind towers)
Steel and iron cloth, grille, and netting
Seating with metal frame and certain metal furniture
Tougher Border Measures to Combat Foreign Steel Dumping:
Enhanced reporting tools: The CBSA is upgrading the secure Border Watch portal to make it easier for individuals and businesses to report suspected mislabeling or non-compliance involving steel imports.
Stronger industry collaboration: The CBSA will hold recurring technical workshops with the Canadian Steel Producers Association to improve enforcement through shared expertise on steel products and global supply-chain practices.
Improved market monitoring: The CBSA’s Market Watch Unit will prioritize timely updates to steel “normal values,” ensuring trade remedy duties reflect current production costs, export prices, and global market conditions.
New dedicated enforcement team: A specialized steel trade compliance team will be created to conduct targeted reviews and focused enforcement efforts across the steel sector.
Temporary Horizontal Remission on U.S. Counter-Tariffs will expire on January 31, 2026
The government will end the temporary horizontal remission of counter-tariffs on U.S. steel used in manufacturing, processing, food/beverage packaging, and agricultural production on January 31, 2026.
Exceptions will continue for steel used in automotive, auto parts, and aerospace manufacturing, as well as all aluminum products, which remain covered beyond that date.
Importers may still apply for case-by-case tariff relief under the remission framework issued on March 4, 2025, where domestic sourcing is not feasible.
For more information, please refer to the following link:
We will continue to monitor developments and provide updates as they become available
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