Canada’s new reductions in steel tariff quotas, stricter border enforcement, and the end of temporary steel tariff remissions mark a shift in the steel imports landscape.
Canada has announced major reductions to its steel tariff quotas, with Prime Minister Mark Carney outlining the new measures in an official press release on November 26, 2025.
The changes introduce lower quota volumes on imported steel, new tariffs on certain steel-derivative products, and additional support programs for affected sectors.
These updates are designed to manage import pressures and help Canadian steel producers maintain stability under current global market conditions.
The new measures introduce significantly lower steel tariff quotas for countries with and without a free trade agreement (FTA) with Canada.
Trading partners without an FTA will face sharper reductions.
For non-FTA countries, Canada is reducing its steel tariff quota to 20% of 2024 import levels, down from the previous 50% threshold.
For FTA partners other than the United States and Mexico (CUSMA partners), the quota will be reduced from the initial ceiling of 100% to 75% of 2024 import levels.
Canada will also enhance border enforcement to combat foreign steel dumping and ensure compliance with applicable surtaxes.
This includes providing a dedicated Canada Border Services Agency (CBSA) steel compliance team and expanding the agency’s capacity to detect false declarations.
The government will also provide an expanded online reporting tool.
Additionally, Canada will end the temporary remission of Canadian tariffs on imported steel used in domestic manufacturing, food and beverage packaging, and agricultural production.
The remission will expire on January 31, 2026, giving companies time to adjust their supply chains and transition toward Canadian-produced steel.
Canada’s new steel tariff quota reductions follow a series of earlier actions taken in 2025, including the implementation of a 25% surtax on selected Chinese-origin steel and aluminum products.
It also builds on July’s announcement to introduce a 50% over-quota surtax under the TRQ framework.
In addition to reduced steel tariff quotas, the government is introducing several domestic measures to strengthen the competitiveness of Canada’s steel and lumber sectors.
Starting December 26, 2025, a new 25% import tariff will apply to the full value of certain steel-derivative products from all countries. These include, but are not limited to:
To further support domestic steel and lumber producers, the government will reduce interprovincial freight costs by 50% on key rail corridors starting in Spring 2026, implement the new “Buy Canadian Policy” later in 2025, and allocate funds to eligible businesses that have active Work-Sharing agreements.
Reach out to one of our trade professionals to discuss the new steel tariff quotas and their potential impact on your steel imports.