The government of Canada announced additional measures to protect Canadian steel industry.
Within the new measures, the government will be strengthening the tariff rate quotas (TRQs) for steel products implemented on June 27, 2025.
• Effective August 1, 2025, the TRQs will be extended to countries that have a free trade agreement in force with Canada, with the exception of the United States and Mexico. This will result in a 50 per cent surtax being applied on steel imports above 100 per cent of 2024 levels.
• For those countries that do not have a free trade agreement with Canada, the quota for tariff-free imports will be reduced to 50 per cent of 2024 levels. A 50 per cent surtax will be applied on steel imports exceeding this threshold.
• The government will consult with industry to finalize adjustments to other design elements of the tariff rate quotas.
Additionally, a 25 per cent surtax will also be applied on imports from all countries other than the U.S. that contain steel melted and poured in China. This will increase transparency in the domestic supply chains and help prevent circumvention of Canada’s trade measures. The product scope of the surtax would align with the existing China Surtax Order on steel. This measure will be implemented before the end of July.
