Canada Steel Tariffs Update: Surtaxes, TRQs, and Derivatives

Canada has tightened steel tariffs and related measures. As of late 2025, Ottawa imposed a 25% global tariff on specified steel derivative products, reduced tariff-rate quotas (TRQs), and confirmed targeted remission end dates for certain U.S.-origin goods. Our job is to classify items correctly, secure permits on time, file entries accurately, and keep your costs predictable. Below is a plain-language summary of the changes, key dates to watch, and how StraitLink Global is handling the work for Canadian importers.

What changed (policy)

Steel derivative products: a 25% global tariff applies to listed steel derivatives (full value, all countries). Goods already subject to steel / aluminum surtaxes are exempt from double taxation, with the scope defined by tariff items in the federal list.
TRQ reductions: effective December 26, 2025, result in TRQs dropping to 20% of 2024 levels for non-FTA countries and 75% for non-CUSMA FTA countries. Over-quota volumes face a 50% surtax.
China-related goods: a 25% surtax applies to specified steel and aluminum from China (effective since October 2024) and remains in effect.
U.S. remission windows (temporary relief), the government confirmed temporary extensions for select uses to give industry time to adjust:
- Steel used for manufacturing / processing, food and beverage packaging, agriculture, remission to Jan 31, 2026;
- Steel for motor vehicles, aerospace goods and parts, remission to Jun 30, 2026. Ottawa detailed the categories and timing via releases and Orders in Council.
- Note: These remissions were established specifically to mitigate retaliatory surtaxes in response to U.S. tariffs, and Canada’s government contextualized them as transitional provisions in late 2025 announcements.

Note: Only one tariff can apply; Canada applies a strict order of precedence (e.g. derivative tariff does not stack on top of another applicable steel / aluminum surtax). Cross-check your tariff item first, then apply TRQ / permit logic.

Critical Dates

Now: China steel / aluminum surtax at 25% on listed items, confirm HS coverage, and any active remission eligibility before booking.
Dec 26, 2025: TRQs tighten to 20% / 75% of 2024 levels by partner type, over-quota = 50% surtax, import permits required to stay within quota.
Dec 26, 2025: A 25% derivative tariff is in effect on listed products (global). Verify your classification against the federal list before shipment.
Jan 31, 2026: End of broad steel remission for manufacturing / processing, food and beverage packaging, agriculture (U.S. counter-tariffs context).
Jun 30, 2026: End of extended remission for vehicles / aerospace categories.

What StraitLink is Doing (Toronto-based, Canada-focused)

Classification and origin validation involves auditing HS codes, origin, and processing notes to determine whether steel tariffs, TRQs, or derivative rules apply. Toronto operations manage CBSA files, while our U.S. partner brokers coordinate with CBP as needed.
For permit and TRQ management, we confirm Global Affairs Canada permit coverage before booking. We monitor TRQ usage and over-quota risks, and we align entries to stay within quota where possible.
Remission mapping (U.S. context): We verify whether your goods fall under the active remission categories and window end-dates. When relief lapses, we recalculate the landed cost and update your SOPs.
Cut-off protection: We adhere to the cut-off windows specified on your StraitLink booking confirmation. If terminals advance windows during peak periods, we pull pick-ups forward to protect free time.
No-surprise filing: We pre-clear entries where eligible, stage derivative / China-surtax support documents, and prevent re-work at exam.
Scope clarity: We handle Canadian brokerage, U.S. clearances via partners, trade-show / white-glove services, and DG (with certification). We do not handle personal effects or LTL reefer shipments.

What Importers Should Do Now

Confirm product scope, review HS codes against the federal derivative list and China-surtax schedules, and record melt / pour and processing where applicable.
Secure TRQ permits early, apply for permits to stay in-quota; if not available, model the 50% over-quota surtax in landed cost.
Plan for remission expiry if you rely on U.S. remission (manufacturing / packaging / agriculture, vehicles / aerospace). Budget for duty from February 1 / Jul 1, 2026, onward as applicable.
Update contracts and pricing, reflect duty changes in quotes and POs, define who holds permit responsibility, and who pays over-quota charges.
Share your HTS list with us, and we’ll return a tariff/permit matrix, cut-off timing plan, and a filing SOP that you can run immediately.

These changes raise real costs if entries, permits, and TRQs aren’t managed expertly. Send us your tariff lines and lanes — StraitLink will classify, permit, file, and schedule to protect your budget and your cut-offs under Canada’s updated steel tariffs.