On December 26, 2025, the newly announced Canadian surtax on steel derivatives will come into effect. Products and goods affected by this will be subject to a 25% surtax on the goods’ value for duty, but there are several relevant exceptions where the surtax will not apply, including:

• Goods that are subject to other certain surtaxes such as the China Surtax Order (2024), the United States Surtax Order (Steel and Aluminum 2025), the Order Imposing a Surtax on the Importation of Certain Steel Goods, or the Steel Goods and Aluminum Goods Surtax Order.
• Casual goods, as defined in section two of the Persons Authorized to Account for Casual Goods Regulations;
• Goods that are classified under a tariff item of Chapter 98 of the List of Tariff Provisions, even if the goods are otherwise classifiable under a tariff item set out in the schedule;
• Goods that are imported before July 1, 2026, for use in the manufacture of motor vehicles or chassis for motor vehicles or in the manufacture of parts of or accessories for motor vehicles or chassis for motor vehicles;
• Goods that are imported before July 1, 2026, for use in aircraft, ground flying trainers, or spacecraft, or in parts of aircraft, ground flying trainers, or spacecraft;
• Utility wind towers, and sections of those towers, that are classified under tariff item 7308.20.00 and imported for installation in energy projects located west of the Ontario–Manitoba border; and
• Goods that are in transit to Canada on the day on which this Order comes into force.

The Order in Council for the steel derivative list can be found here. 

A backgrounder page with the steel derivatives list can be found here.  

Additionally, Notice to Importers: Item 82 - Steel goods - Serial No. 1160 has been updated with the details of the promised changes to steel tariff rate quotas (TRQ):

• TRQ for imports from non-free trade agreement partners reduced to 20% of 2024 levels
• TRQ for imports from non-Canada, US, and Mexico Agreement partners reduced to 75% of 2024 levels
• Reassignment of tariff classification numbers between the Line Pipe, Large Diameter Line Pipe, and Standard Pipe product classes

The updated Notice to Importers can be found here.