U.S.-Canada Steel & Aluminum Tariffs 2025: What Canadian Businesses Need to Know

Why Are Tariffs Back in the Headlines?

On June 3, 2025, the U.S. officially doubled its Section 232 tariffs on imported steel and aluminum products from 25% to 50%, citing national security and global overcapacity concerns.
→ Read the U.S. Presidential Proclamation

These tariffs, effective as of June 4, 2025, revived memories of the 2018 U.S.-Canada trade dispute. In response, Canada announced a six-point plan on June 19, 2025 to protect its metal industry, workers, and critical supply chains.
→ Official Announcement from the Government of Canada

Canada’s Six-Point Counter-Measure Package

Measure What it Means for Businesses

1. Counter-tariff “dial” – Canada will adjust its surtaxes on U.S. imports on July 21, 2025, based on the outcome of negotiations. Expect cost variability; plan for 10%, 25%, and 50% duty scenarios.

2. Reciprocal procurement rules – Federal purchasing will favour countries with open access to Canadian suppliers. U.S.-based suppliers could lose access to federal contracts.

3. Import caps on non-FTA nations – Canada will apply tariff-rate quotas (TRQs) on steel/aluminum from non-FTA countries above 2024 volumes. Importers must monitor volumes and customs declarations closely.

4. Tightened origin rules – Steel must be “melted and poured” and aluminum “smelted and cast” in the country of export. Ensure Certificates of Origin meet the new rules.

5. Industry task-forces – Ottawa will form advisory committees with manufacturers and unions to monitor supply chains. Watch for fast-evolving policies via Global Affairs Canada.

6. $10B loan facility for large manufacturers impacted by tariffs. Targeted support for firms in steel, automotive, and heavy equipment sectors.

→ Canada’s Steel & Aluminum Trade Measures (GAC)

Measure	What it Means for Businesses
1. Counter-tariff “dial” – Canada will adjust its surtaxes on U.S. imports on July 21, 2025, based on the outcome of negotiations.	Expect cost variability; plan for 10%, 25%, and 50% duty scenarios.
2. Reciprocal procurement rules – Federal purchasing will favour countries with open access to Canadian suppliers.	U.S.-based suppliers could lose access to federal contracts.
3. Import caps on non-FTA nations – Canada will apply tariff-rate quotas (TRQs) on steel/aluminum from non-FTA countries above 2024 volumes.	Importers must monitor volumes and customs declarations closely.
4. Tightened origin rules – Steel must be “melted and poured” and aluminum “smelted and cast” in the country of export.	Ensure Certificates of Origin meet the new rules.
5. Industry task-forces – Ottawa will form advisory committees with manufacturers and unions to monitor supply chains.	Watch for fast-evolving policies via Global Affairs Canada.
6. $10B loan facility for large manufacturers impacted by tariffs.	Targeted support for firms in steel, automotive, and heavy equipment sectors.

A 30-Day Window for a U.S.-Canada Deal

At the G7 Summit in Alberta, Prime Minister Mark Carney and President Trump agreed to negotiate a new economic security partnership within 30 days. Canada’s surtaxes will adjust accordingly.
→ G7 Communiqué Summary (PMO)

Immediate Action Items for Canadian Importers and Exporters

Here’s what your company should do now:

✅ Audit your HS codes – Focus on Chapters 72, 73, and 76 for impacted products.
✅ Review Incoterms and pricing clauses – Ensure your contracts account for potential duty increases.
✅ Check supplier country-of-origin compliance – Inaccurate claims could result in CBSA penalties under AMPS.
✅ Evaluate supply chain alternatives – Products from Korea or the UK may offer reduced duties but fall under TRQ limits.
✅ Stay informed – Subscribe to CBSA Customs Notices for updates.

What’s the Outlook for 2025?

Scenario	Details
Best Case	Canada and the U.S. reach an agreement and rollback tariffs by summer.
Middle Ground	Mutual tariffs remain at 25%, with strict import monitoring and quotas.
Worst Case	Talks collapse. Canada imposes full counter-duties. U.S. keeps 50% tariffs. Supply chains become more regional and less predictable.

Final Thoughts

The U.S.-Canada steel and aluminum standoff in 2025 is shaping up to be a defining trade issue—again. Whether you’re an importer, freight forwarder, customs broker, or manufacturer, the next 30–90 days are critical.

Our advice: Review your exposure now. Build tariff scenarios. Prepare documentation. And don’t wait to consult your trade advisor or customs broker.