New Canadian Surtax on Steel Imports

Overview 

Further to our previous communication, the CBSA has announced that effective August 1, 2025, the Government of Canada is imposing a new surtax on certain steel goods imported from several trading partners. 

What Importers Should Know  

The Order Amending the Order Imposing a Surtax on the Importation of Certain Steel Goods contains a complete list of goods and their import quotas subject to the surtax, for goods originating in a non-FTA country and in a subject FTA country. 

New Tariff Rate Quotas (TRQs) 

New tariff rate quotas (TRQs) apply to both countries with a free trade agreement (FTA) in force with Canada and those without.  

• TRQs allow a set volume of steel imports to enter Canada duty-free.  

• Once that limit is reached, a surtax applies to the volume of steel product imports that exceed the quota limit. 

Subject Goods  

Schedules 1 and 2 of the amended surtax order list the steel goods and import quotas subject to the surtax, for both non-FTA and FTA countries. 

• For countries with FTA in force with Canada, excluding the United States and Mexico 

• • The quota limit is listed in column 2 of Schedule 2, or column 2.1 during the transitional period of August 1 to September 25, 2025, for that class.  

• • A surtax of 50% will apply to any steel imports exceeding that quota.  

• For non-FTA countries 

• •  The quota set out in column 2 of Schedule 1 for that class, with the same surtax of 50% applied beyond that point. 

These measures follow Canada’s imposition of a 50% surtax, that came into effect June 27, 2025, on certain steel products (specifically flat, long, pipe and tube, semi-finished, and stainless-steel products) that originate from non-FTA countries, as listed in Schedule 1 of the Order Imposing a Surtax on the Importation of Certain Steel Goods. 

Import Permits 

To qualify for surtax-free entry under the TRQ, importers must obtain shipment-specific import permits by applying through the Global Affairs Canada (GAC)*.  

*Important note: 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 before August 1, 2025 (with proof) 

• Goods originating from Canada, US, or Mexico 

• Casual goods and goods classified under Chapter 98 of the Customs Tariff 

Sources:   

• Government of Canada: Order Amending the Order Imposing a Surtax on the Importation of Certain Steel Goods 

• CBSA: Customs Notice 25-24  

• Global Affairs: Notice to importers: Item 82 – Steel goods – Serial No. 1142 

Delmar Support 

Our Customs Advisory and Consulting experts remain available to assist with important questions on the topic at hand. Delmar will continue to provide pertinent updates from the Government of Canada as they become available.    

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