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Government of Canada Imposing a Surtax on the Importation of Certain Steel Goods

blog | Jul 03, 2025

Overview 

Effective June 27, 2025, the Canadian government imposed a 50% surtax on certain steel imports to prevent trade diversion from third countries into the Canadian market caused by US steel trade measures. 

 

Subject Goods & Quotas 

Goods impacted by this order include flat, long, pipe and tube, semi-finished, and stainless-steel products originating from non-free trade agreement countries (see Schedule 1 of the Order).  

Steel imports are now subject to Tariff Rate Quotas (TRQs) (see Schedule 1 of the Order). 

 

How the Surtax Will Be Applied 

  • Imports above these TRQ volumes for each of the five classes of steel goods will be subject to a surtax in the amount of 50% of the value for duty. 
  • The annual quota is divided into quarterly periods, with any unused quantity from previous periods being carried forward into the following period.   
  • The quota available in each quarter is also subject to a quantity limit per country of origin.   
  • Any volumes imported above the quota will be subject to a 50% surtax.  

 

Import Permits – Surtax Free Entry 

Importers must obtain shipment-specific import permits to qualify for surtax-free entry under the TRQ. Importers may apply for a shipment-specific import permits through the Global Affairs Canada (GAC).  

However, import permits will not be issued once the quantities have been reached. Goods may continue to be imported under General Import Permit No. 80 or 81, as applicable, in excess of the limits set out in the Order but will be subject to the surtax. 

 

Exceptions to Surtax 

  • Goods in transit to Canada on the date on which the surtax comes into force (with proof). 
  • Goods originating from countries listed in Schedule 2. 
  • Casual goods and goods classified under Chapter 98 of the Customs Tariff. 

 

Key Compliance Elements 

  • Importers are responsible for consulting GAC online utilization reports to track quota availability. 
  • Importers must indicate the applicable correct surtax code when completing a Commercial Accounting Declaration (CAD).  
  • Importers may obtain permits retroactively (if eligible) and request the CBSA for a refund of the amount of surtax paid on shipments imported without a permit. 
  • Imported goods may be subject to CBSA examination at the time of importation and to post-release verification for compliance purposes. 
  • The imposition of a surtax by the Governor in Council, including the rate of that surtax, is not subject to appeal. 
  • CBSA determinations, re-determinations and further re-determinations which may include the applicability of the surtax, may be subject to appeal.  

 

Sources:  

 

Delmar Advisory Team   

Our Canadian Customs Advisory Services team is available to assist importers with related questions. Delmar will continue to provide pertinent updates as they become available.  

 

For additional information and assistance, please contact your local Delmar Representative.  

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