Trade Regulation Updates

Canada Introduces Several New Measures to Protect Canadian Steel and Aluminum

July 30, 2025

[UPDATE]

On July 30, 2025, the Canadian Government published an order that imposes a 25% surtax on certain goods, imported for commercial use, containing steel or aluminum melted, poured, smelted, or cast in China. This order came into effect on July 31, 2025. 

The Customs notice with details surrounding this surtax can be found here.  

A complete list of goods affected by this surtax can be found here.  

Notably, this order assumes that any goods subject to this surtax are to be considered having Chinese steel and aluminum unless proven otherwise. Currently, proof can include any certificates as detailed in the Customs notice, commercial invoices, or reports similar to those that would be acceptable for the purposes of establishing a free trade agreement or Most Favored Nation status. 

However, commercial invoices and reports will no longer be valid proof of origin from September 22, 2025 onward. 

---

[UPDATE]

In an update to a regulation that was announced on June 19, 2025, the Canadian Government has made several additions to its plan to protect the steel and aluminum industries. The following are the new additions as of June 27th: 

  • Beginning August 1, 2025, tariff rate quotas (TRQs) will be extended to countries that have a free trade agreement in force with Canada, with the exception of the US and Mexico. 
  • The TRQ threshold is being reduced to 50% of the amounts imported in 2024 (reduced from 100%) for those countries that do not have an FTA with Canada
  • A new surtax of 25% will be implemented on imports from all countries other than the US that contain steel melted and poured in China. 
  • The product scope of this surtax will align with the existing China Surtax Order on steel.

---

On June 19, 2025, the Canadian Government released a list of measures it intends to implement to protect and bolster the Canadian Steel and Aluminum industries in the face of US tariffs. Those measures include the following: 

  1. On July 21, 2025, Canada will adjust its counter tariffs on steel and aluminum products to reflect the progress made in trade arrangements with the US. 
  2. On June 30, 2025,  the government intends to implement ‘reciprocal procurement policies’ on who can bid for federal government contracts. This will effectively narrow the field down to Canadian companies or those foreign companies whose country does not block or limit Canadian companies from bidding on their own government projects. 
  3. New tariff rate quotas of 100% of 2024 levels on imports of steel products from non-free trade agreement partners are being applied retroactively and will be reviewed in 30 days. 
  4. The government intends to adopt additional tariff measures to address the risks brought about by global overcapacity and “unfair trade” in the steel and aluminum sector. 
  5. The government will create two government-stakeholder task forces - one for steel and one for aluminum. Those committees will monitor trade and market trends to support government decision-making. 
  6. A new $10 billion Large Enterprise Tariff Loan facility will remain open to applicants. The goal of this program is to support large businesses that are being challenged by current market conditions by providing access to liquidity. 

The full press release can be found here

For more information as it becomes available, we encourage you to subscribe to our newsletter, the Trading Post.