Toronto, December 12, 2025
Prime Minister Mark Carney recently announced new trade measures for Canada’s steel industries which will see adjustments to import Tariff Rate Quota (TRQ) limits, temporary remission expiration dates, along with a 25 percent Steel Derivative tariff to take effect December 26, 2025.
Highlights of the steel measures on imports into Canada include the following:
Reduction of steel import Tariff Rate Quota (TRQ) limits:
- Effective December 26, 2025, tariff rate quotas for countries that do not have a free trade agreement with Canada will be reduced from 50% to 20% of 2024 levels, with over-quota volumes continuing to face a 50% surtax.
- Effective December 26, 2025, tariff rate quotas for countries that have a free trade agreement in force with Canada will be reduced from 100% to 75% of 2024 levels, with over-quota volumes continuing to face a 50% surtax. Canada will continue to honour its existing CUSMA carve-out. As such, the United States and Mexico will continue to be exempted from this requirement.
Imposition of 25 percent Steel Derivative Tariff:
Effective December 26, 2025, Canada will apply a 25% tariff on the full value of listed steel derivative products from all countries. This measure will apply initially to a list of steel derivative products produced in Canada.
- The initial list is expected to apply to over $10 billion in steel derivative imports. It will cover derivatives for which steel content is a large portion of the full value of the product, with the product categories shown below.
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
A more comprehensive list will be made available.
At this time the Canada Border Services Agency (CBSA) have not yet provided a full list by import HS Tariff Classification Number.
Expire the temporary remission of counter-tariffs on US goods
Canada’s temporary remission of counter-tariffs for goods used in Canada for manufacturing, processing, food and beverage packaging, or agricultural production is currently set to expire on December 15, 2025. This temporary remission on US steel is now set to expire effective January 31, 2026, with the continued exception of goods used for the manufacturing of automobiles, auto parts, and aerospace products. The remission of counter-tariffs on aluminum products will also continue beyond January 31, 2026.
Importers will still be eligible to apply for remission under the remission framework published by the government on March 4, 2025, which provides for ongoing tariff relief in a narrow set of circumstances, for example where inputs cannot be sourced domestically.
More information will be provided as details become available.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
