Trade Alert: Canada’s Major Steel & Lumber Shake-Up is Here – What Importers Need to Know for 2026

The trade landscape is changing rapidly. Recently, the Government of Canada announced a comprehensive suite of urgent measures intended to strengthen key domestic sectors, primarily Steel and Softwood Lumber. For A & A Customs Brokers, this means one thing: the rules of importing are getting tighter, and preparation is no longer optional—it's essential.

We’ve distilled the key policy shifts that will directly impact your shipments and your bottom line starting in late 2025 and early 2026.

The Clock is Ticking: Major Changes to Steel Imports

The core of these new measures is a pivot toward self-sufficiency, which translates into stricter border controls and higher costs for foreign steel.

1. Goodbye to Easy Tariff-Free Quotas (TRQs)

If you import certain steel products, the Tariff Rate Quota (TRQ) system is about to become much more restrictive starting December 26, 2025.

• For Non-FTA Countries: The quota of steel permitted to enter with preferential rates is being slashed from 50% to just 20% of 2024 levels.
• For FTA Countries (Non-CUSMA): Their quota is being reduced from 100% to 75% of 2024 levels.

What this means for you: The “quota window” will close much faster than before. Once the limited volume is claimed, the standard 50% surtax is automatically applied to any additional subject goods. Proactive planning and monitoring are now non-negotiable to avoid this major cost increase.

2. The New 25% Surtax on Steel Derivatives

Also effective December 26, 2025, a brand new 25% tariff will apply to the full value of specific steel derivative products, regardless of the country of origin.

This will hit a wide range of goods that often slip through the cracks of existing tariffs, including:

• Certain shapes of iron/non-alloy steel
• Doors and windows
• Fasteners (like nails and screws)
• Prefabricated structures (e.g., bridges, wind towers)
• Wire, ropes, cables, chains, and certain metal furniture

Our Critical Note: The CBSA has not yet released the specific list of affected HS codes. We are monitoring this release daily. If you import any of the products listed above, please reach out to us now. We need to analyze your current classifications to prepare for the moment the official list drops.

3. Expiration of Key Tariff Remission Orders

If you’ve been relying on the temporary remission of counter-tariffs on US steel used for Canadian manufacturing, processing, and food/agri-packaging—be warned. This broad, horizontal coverage is expiring on January 31, 2026 (with auto and aerospace being exceptions).

The new reality: Going forward, obtaining tariff relief will be application-based and granted only in a narrow set of circumstances, such as when inputs simply cannot be sourced domestically. This shifts the burden of proof entirely onto the importer and requires much more preparation.

Increased Enforcement: Compliance is a Must

The government is not just tightening the rules; they are beefing up enforcement. The CBSA is establishing a dedicated Steel Trade Compliance Team and a Market Watch Unit.

Their focus will be on:

• Catching mislabeled goods or false declarations.
• Updating "normal values" to reflect true global production costs.
• Processing non-compliance tips through an expanded online portal.

In short, there will be more eyes on your steel imports than ever before. If your paperwork and classification are not 100% accurate, you risk significant fines, audits, and delays.

What About Softwood Lumber? (A Look at the Incentives)

While the steel measures are mostly regulatory sticks, the government is also rolling out some major incentives aimed at bolstering the domestic Softwood Lumber sector and supporting Canadian businesses:

• Financial Support: A $500 million top-up to the BDC Softwood Lumber Guarantee Program.
• Logistics Discounts: Starting in Spring 2026, there will be a 50% discount on interprovincial rail freight for steel and lumber.
• Buy Canadian: New policies will prioritize Canadian wood and steel in major federal contracts (over $25M) and housing projects.

Our Commitment to You

Navigating a landscape of tighter quotas, new surtaxes, and expiring remissions is complex, time-consuming, and risky.

At A & A Customs Brokers, we believe in simplification. Our team is actively tracking the release of the specific HS codes and the administrative guidelines from Global Affairs Canada and the CBSA.

Don't wait until the new surtaxes hit your invoice.

Reach out to our experts today to review your current steel import profile, assess your exposure to the new TRQ limits, and begin preparing for the application-based remission framework. We are here to ensure your shipments remain compliant and you avoid unnecessary costs.

Contact us to start your trade compliance review today.

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Optional Resources:

Link to Publication from the PMO: 

https://www.pm.gc.ca/en/news/backgrounders/2025/11/26/prime-minister-announces-new-measures-protect-and-transform-canadas#:~:text=%2A%20Certain%20shapes%20of%20iron%2Fnon,frame%20and%20certain%20metal%20furniture 

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Link to Publication CN 25-24: 

https://www.cbsa-asfc.gc.ca/publications/cn-ad/cn25-24-eng.html 

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Link to Publication Serial No. 1142: https://www.international.gc.ca/trade-commerce/controls-controles/notices-avis/1142.aspx?lang=eng 

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