Canada : 25% Global Tariffs on Steel Derivative Products and Reduced Tariff Rate Quota Levels for Steel Products

24-hour hotline : 23 922 922

e-mail address : enquiry@tid.gov.hk

Ref. : EIC 191/3

15 December 2025

Dear Sirs,

Further to Commercial Information Circulars (CICs) No. 797/2024, 535/2025 and 682/2025 dated 2 October 2024, 30 June 2025 and 6 August 2025, the Department of Finance Canada announced on 12 December 2025 that effective from 26 December 2025 certain imported steel-derivative products shall be subject to a 25% global tariff and tariff rate quota levels for certain imported steel products shall also be reduced to 20% of 2024 levels for non-free trade agreement (FTA) partners.

2.On 1 October 2024, the Department of Finance Canada announced steel and aluminium products from Chinese Mainland that would be subject to the 25% surtax effective from 22 October 2024. On 27 June 2025, the Department of Finance Canada announced the implementation of tariff rate quotas (TRQs) on imports of certain steel goods from non-FTA partners of Canada effective from 27 June 2025 and a 50% surtax would be applied on imports of covered steel products that exceed the specified quantity threshold. Canada Border Services Agency announced on 31 July 2025 that certain steel goods melted and poured in Chinese Mainland and certain aluminium goods smelted and cast in Chinese Mainland are subject to a 25% surtax effective from 31 July 2025.

3.On 12 December 2025, the Department of Finance Canada announced that effective from 26 December 2025, Canada shall impose 25% tariffs on the full value of the listed steel derivative products from all countries/economies. Effective from 26 December 2025, tariff rate quota levels for certain imported steel products shall also be reduced to 20% of 2024 levels for non-FTA partners. The TRQs are administered by way of shipment-specific import permits. The TRQs will be administered until 27 June 2026, subject to any amendment, extension, or repeal of the relevant Surtax Order. Requests for remission of tariffs on derivative products will be considered on a case-by-case basis.

4.In addition, Canada maintains a non-stackable policy for its tariffs on steel and aluminium. Only one of these measures can apply to a particular good, following this order of precedence:

1. Tariffs on steel imports over the established TRQs for non- Canada-US-Mexico Agreement (CUSMA) countries/economies.
2. Either: a) tariffs on US steel and aluminium products; b) tariffs on Chinese Mainland steel and aluminium products; or c) tariffs on non-US imports that contain steel melted and poured, or aluminium smelt and cast, in Chinese Mainland.
3. tariffs on steel derivative products from all countries/economies (effective 26 December 2025).

5.For details, please refer to the Department of Finance Canada’s news release, backgrounder and Global Affairs Canada’s notice to importers:

News release
https://www.canada.ca/en/department-finance/news/2025/12/government-implements-new-measures-to-protect-canadas-steel-industry.html

Backgrounder
https://www.canada.ca/en/department-finance/news/2025/12/list-of-steel-derivative-products-subject-to-25-per-cent-tariffs-effective-december-26-2025.html

Notice to importers: Item 82 - Steel goods - Serial No. 1160
https://www.international.gc.ca/trade-commerce/controls-controles/notices-avis/1160.aspx?lang=eng

6.For enquiries concerning the content of this circular, please contact us at telephone number 2398 5405.

Yours faithfully,

(Miss Kwany KOU)
for Director-General of Trade and Industry

Note: While every effort is made to ensure the accuracy of the above information, the Department cannot guarantee this to be so and will not be held liable for any reliance placed on the same.