In a significant move to protect domestic steel production and ensure fair trade practices, the Government of Canada has imposed a temporary surtax on specific imported steel products. As of June 27, 2025, certain steel goods entering Canada will be subject to a 50% surtax on the value for duty, under the authority of the Order Imposing a Surtax on the Importation of Certain Steel Goods.
Scope of Goods: The surtax applies to a range of steel products, including flat, long, pipe and tube, semi-finished, and stainless-steel goods. A full list of affected items is outlined in Schedule 1 of the Order.
Tariff Rate Quotas (TRQs): The surtax applies only to goods exceeding annual import volumes established through tariff rate quotas (TRQs). Separate TRQs have been implemented for each of the five steel categories.
Country Coverage: These trade measures target imports from non-free trade agreement (non-FTA) countries. Steel goods originating from Canada’s FTA partners are exempt from the surtax, provided origin rules are met.
Valuation: The 50% surtax is calculated based on the value for duty, determined in accordance with Sections 47 to 55 of the Customs Act.
Duration: This measure is temporary and will remain in place for one year, subject to review or extension depending on market conditions and global trade developments.
Next Steps for Importers
Importers of steel goods should immediately review their sourcing strategies and assess whether their shipments are subject to the new surtax. Staying within TRQ thresholds will be essential to avoiding significant cost impacts. Proper tariff classification, origin documentation, and understanding TRQ administration will be critical to ensure compliance.
If you have any questions, contact your Mohawk Global representative or reach out directly.