The extension is part of a broader federal response to support Canada’s steel and aluminum industries, which also includes direct funding, financing, and regional support programs.
The Department of Finance Canada has announced that Canada will extend key steel and aluminum tariff measures for one year, including its steel tariff-rate quota (TRQ) regime for imports from non-CUSMA countries and horizontal tariff relief for eligible steel and aluminum products from the U.S.
The temporary remission of Canadian tariffs on steel and aluminum was set to expire on June 30, 2026. Under the new announcement, the existing horizontal tariff relief for eligible U.S. steel and aluminum products is expected to be extended to June 30, 2027, subject to approval by the Governor in Council.
Canada also plans to extend its steel TRQ regime for imports from non-CUSMA partners to June 27, 2027. Current quota levels would remain at 20% of 2024 volumes for countries without a free trade agreement with Canada, and at 75% of 2024 volumes for countries with a free trade agreement with Canada.
Imports above quota limits would continue to be subject to a 50% tariff. The U.S. and Mexico will still be exempt from the steel TRQs as CUSMA partners.
The relief applies to eligible steel and aluminum goods used in auto and aerospace manufacturing, as well as for public health, health care, public safety, and national security purposes.
U.S. aluminum goods used in manufacturing, processing, food and beverage packaging, and agricultural production are also eligible for extended tariff relief, along with eligible steel products subject to derivative tariffs.
The government also indicated that it intends to begin work on an allocations-based approach for administering quotas for certain product classes, with stakeholders expected to have an opportunity to provide input.
At Cole International, we offer trade consulting and customs brokerage services to help Canadian businesses understand how tariff measures, quota rules, and remission programs may affect their imports.
Reach out to one of our trade professionals to discuss how these extended steel and aluminum tariff measures may apply to your goods.