Canada’s New Steel Import Tariff-Rate Quotas: What Importers Need to Know

Canada’s New Steel Import Tariff-Rate Quotas: What Importers Need to Know

In a move to protect its domestic steel industry from global trade diversion and oversupply, the Government of Canada has introduced tariff-rate quotas (TRQs) on certain steel mill product imports. These new rules, effective June 27, 2025, have immediate implications for importers across the country.

🔗 Official Announcement – Department of Finance Canada

🔍 What Are the New Steel TRQs?

The TRQs apply to imports of five key steel product categories:

  • Flat products (sheet, plate)
  • Long products (rebar, structural)
  • Pipe and tube
  • Semi-finished steel
  • Stainless steel

For each category, duty-free import volume is capped quarterly, based on 2024 import levels from non-free trade agreement (non-FTA) countries, such as China, Brazil, India, and Turkey.

⚠️ Any imports exceeding these quotas will be hit with a 50% surtax on the value for duty.

Importers must obtain shipment-specific permits from Global Affairs Canada in advance. Permits are issued on a first-come, first-served basis, and shipments without permits will automatically incur the surtax.

🔄 August 1 Changes: What’s New

The TRQ system is tightening further on August 1, 2025:

  • Quotas will be extended to most FTA countries, including the EU, UK, Japan, and South Korea
  • Only the U.S. and Mexico will remain exempt under CUSMA/USMCA
  • Quota volumes for non-FTA countries will be reduced to 50% of 2024 levels
  • A new 25% surtax is being introduced on steel that was “melted and poured in China,” even if shipped from another country

These changes reflect a hardening stance by Canada against trade diversion and global dumping.

🏗️ Who Will Be Affected?

Importers across these industries will face the biggest challenges:

  • Construction: Rebar, beams, and infrastructure steel
  • Automotive: Flat steel for panels and chassis
  • Energy and Mining: Pipe & tube for pipelines and rigs
  • Manufacturing: Stainless and alloy steel
  • Steel Distributors: Inventory planning and compliance burden

Without proper quota management, importers risk costly delays or unexpected tariffs.

✅ What Should Importers Do?

At G&C Logistics, we recommend the following immediate steps:

  1. Audit your supply chain – Identify steel imports by country of origin.
  2. Apply early for permits – Monitor quota utilization regularly.
  3. Explore U.S. and Mexican suppliers – Currently exempt from quotas.
  4. Prepare for compliance checks – Ensure accurate customs coding and documentation.
  5. Budget for cost contingencies – The 50% surtax is steep and could affect cash flow.

📞 Need assistance? Our customs experts are here to help you stay compliant and cost-efficient. Reach out for a consultation or contact your dedicated account representative.

If you import steel or rely on international suppliers, now is the time to adapt. Proactive planning could save your business significant costs and disruptions in the months ahead.