The Government of Canada has announced new measures to further limit foreign steel imports, ensuring Canadian steel producers have improved access to the domestic market. Key updates to the tariff rate quotas (TRQs) and remission timelines include the following:
Reduced Tariff Rate Quotas (Effective December 26, 2025):
– For non-FTA countries:
TRQs will be reduced from 50% to 20% of 2024 levels. Over-quota volumes will continue to face a 50% surtax.
– For countries with a free trade agreement in force with Canada:
TRQs will be reduced from 100% to 75% of 2024 levels, with over-quota volumes also facing a 50% surtax.
– CUSMA carve-out:
Canada will continue to honour its existing exemption under the Canada–United States–Mexico Agreement (CUSMA). As such, the United States and Mexico will remain exempt from these TRQ adjustments.
New 25% Tariff on Steel Derivative Products (Effective December 26, 2025):
Canada will apply a 25% tariff on the full value of certain listed steel derivative products from all countries.
- This measure will initially target a list of steel derivative products produced in Canada.
- The list may be updated periodically to reflect evolving market conditions.
- The initial list is expected to cover over $10 billion in imports, focusing on products where steel content forms a significant portion of the final product value.
Expiry of Temporary Remission on U.S. Counter-Tariffed Goods:
– December 15, 2025:
Remission on goods used for manufacturing, processing, food and beverage packaging, or agricultural production will expire.
– January 31, 2026:
Remission on U.S. steel used for the purposes above will expire — excluding goods used in the manufacture of automobiles, auto parts, and aerospace products.
– Aluminum products:
Remission on aluminum will continue beyond January 31, 2026.
Importers will remain eligible to apply for relief under the remission framework published by the Government of Canada on March 4, 2025, which provides ongoing tariff relief in narrow circumstances, such as when required inputs cannot be sourced domestically.
Need help navigating the new TRQ and remission changes?
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