On November 26, 2025, the Government of Canada announced comprehensive new measures to safeguard and expand the domestic steel and lumber sectors in response to ongoing U.S. trade challenges. These strategic actions include new tariffs, limits on foreign imports, and targeted support for Canadian producers. The initiative aims to strengthen Canadian industries, boost domestic demand, and enhance global competitiveness through financial aid, transport cost reductions, and homebuilding initiatives. This announcement builds on previous government efforts to support tariff-affected sectors.

‍Further limit foreign steel imports to ensure that Canadian steel producers have better access to the domestic market.

Reduced tariff rate quotas include the following:

• Effective December 26, 2025, tariff rate quotas for countries that do not have a free trade agreement with Canada will be reduced from 50% to 20% of 2024 levels, with over-quota volumes continuing to face a 50% surtax.
• Effective December 26, 2025, tariff rate quotas for countries that have a free trade agreement in force with Canada will be reduced from 100% to 75% of 2024 levels, with over-quota volumes continuing to face a 50% surtax. Canada will continue to honour its existing CUSMA carve-out. As such, the United States and Mexico will continue to be exempted from this requirement.
• Effective December 26, 2025, Canada will apply a 25% tariff on the full value of listed steel derivative products from all countries. This measure will apply initially to a list of steel derivative products produced in Canada. This list may be periodically updated to reflect changes in market conditions. The initial, carefully selected list is expected to apply to over $10 billion in steel derivative imports. It will cover derivatives for which steel content is a large portion of the full value of the product, with the product categories shown below.

Expire the temporary horizontal remission of counter-tariffs on U.S. goods

Temporary remission of counter-tariffs for goods used in Canada will be expiring in the coming months.

• remission for manufacturing, processing, food and beverage packaging, or agricultural production is currently set to expire on December 15, 2025.
• remission on U.S. steel used for manufacturing, processing, food and beverage packaging, or agricultural production will expire effective January 31, 2026, with the continued exception of goods used for the manufacturing of automobiles, auto parts, and aerospace products.
• remission on aluminum products will also continue beyond January 31, 2026.

Importers will still be eligible to apply for remission under the remission framework published by the government on March 4, 2025, which provides for ongoing tariff relief in a narrow set of circumstances, for example where inputs cannot be sourced domestically.

Please visit this link for additional details: https://www.pm.gc.ca/en/news/backgrounders/2025/11/26/prime-minister-announces-new-measures-protect-and-transform-canadas

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Revised TRQs and Import Permits for Steel
‍Updated as of December 12, 2025: Canada issued an updated notice revising its tariff-rate quotas (TRQs) for certain steel products under item 82 of the Import Control List, effective December 26, 2025. These changes are part of the Second Amending Surtax Order.

TRQ Adjustments

• Reduced Import Volumes: TRQs for steel from non-FTA countries are set at 20% of 2024 levels (previously 50%), while TRQs for non-CUSMA FTA countries are reduced to 75% of 2024 volumes (previously 100%).
• Reclassification of Products: Some steel items have been moved between the line pipe, large diameter line pipe, and standard pipe categories. The structural steel category has removed tariff item 7216.91.00.10.
• Scope: These quotas cover all steel goods except those from Canada, the U.S., or Mexico. Detailed volumes and limits for each country are published in the updated notice.

Permit Requirements

• Shipment-Specific Permits: Importers must obtain permits from Global Affairs Canada to import steel within quota limits without surtax. Requests can be submitted up to 15 days before the expected arrival of the shipment.
• Permit Validity Rules: For shipments entering in a future quarter, the validity period starts on the first day of that quarter. For current-quarter shipments extending into the next quarter, the permit remains valid according to the updated rules.
• Tracking Quotas: TRQ usage is recorded when permits are issued and cannot carry over to the next quarter. Importers can access daily reports online showing detailed usage by product type and country of origin.

Note that steel imported without a valid permit, or above quota limits, must use the applicable General Import Permit and will be subject to surtaxes.

Steel Industry Measures

Import Limits and Tariffs

• A 25% global tariff will apply to targeted steel-derivative products, including wind towers, prefabricated buildings, fasteners, and wires. The tariff will cover over $10 billion in imports and apply to products where steel makes up a large portion of their value.
• Effective December 26, 2025, Canada will reduce tariff-free steel import quotas for countries without a free trade agreement from 50% to 20% of 2024 levels, with a 50% surtax on any over-quota imports.
• Also starting December 26, 2025, Canada will lower tariff‑free steel import quotas for countries with a free trade agreement (excluding the U.S. and Mexico) from 100% down to 75% of 2024 levels; any volumes beyond that threshold will incur a 50% surtax, while the existing CUSMA carve‑out remains unchanged.

Expiration of Temporary Counter-Tariff Remissions on U.S. Goods

The temporary remission of Canadian counter-tariffs on U.S. goods expires on December 15, 2025. Following this, the remission on U.S. steel used in manufacturing and related sectors ends January 31, 2026, but exemptions for autos, auto parts, and aerospace remain. Remission on aluminum products continues beyond this date.

Importers may still request relief under the remission framework issued earlier this year, which applies in specific cases, such as when inputs cannot be sourced domestically.

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