On December 26, 2025, the Government of Canada announced new trade measures imposing a 25% tariff on a broad range of steel derivative products imported into Canada from all countries. The tariff applies to goods entered or withdrawn for consumption on or after December 26, 2025.
Issued by the Department of Finance Canada, this measure expands Canada’s existing steel trade controls and will affect importers across construction, manufacturing, infrastructure, energy, transportation, and consumer goods sectors.
What Changed?
Effective December 26, 2025, Canada will apply a 25% surtax on the full value of covered steel derivative products. While indicative descriptions are provided, the legal scope is determined by the applicable tariff item in Canada’s Customs Tariff.
Covered products include, but are not limited to:
- Structural steel components (e.g., bridges, towers, lattice masts, doors, and window frames)
- Iron or steel wire products, including stranded wire, cables, fencing, mesh, and expanded metal
- Chains, fasteners, nails, screws, bolts, nuts, washers, rivets, and springs
- Cast, forged, stamped, and wire articles of iron or steel
- Certain aluminum stranded wire products with steel core
- Select furniture, seating, lighting components, and prefabricated or modular steel buildings
Given the breadth of affected Harmonized System (HS) classifications, accurate classification is critical to determining tariff exposure.
Key Exemptions
The 25% tariff does not apply to:
- Goods already subject to other Canadian surtax measures, including the China Surtax Order (2024) and the United States Surtax Order (Steel and Aluminum 2025)
- Casual goods under Canadian regulations
- Goods classified under Chapter 98 of Canada’s Customs Tariff
- Goods imported before July 1, 2026 for use in:
- Motor vehicles, chassis, or related parts and accessories
- Aircraft, ground flying trainers, spacecraft, or related parts
- Utility wind towers and tower sections classified under tariff item 7308.20.00 and imported for energy projects located west of the Ontario–Manitoba border
- Goods in transit to Canada on the date the tariffs come into force
Requests for tariff remission will be reviewed case by case, particularly where goods cannot be sourced domestically or where exceptional circumstances could result in significant economic harm.
If you have questions about how these Canadian steel derivative tariffs may impact your supply chain, or need support reviewing classifications, exclusions, or compliance strategies, please contact your Mohawk Global representative.