In 2025, Canada introduced a range of tariffs (surtaxes) and import quotas in response to changes in the global trading environment. While many of these measures were accompanied by relief mechanisms that permitted importers to claim or apply for remission (exemptions or refunds), some of these are now being phased out as Canada continues to tighten its trade restrictions overall.
New Tariffs on Imports of Steel Derivatives
Effective December 26, 2025, Canada imposed a 25% tariff on global imports of certain steel derivative products. The tariff applies to a defined list of goods, including various downstream products — many of which contain only a partial steel content and, notably, some of which contain no steel at all.
Certain exceptions were provided, including for:
- Goods imported for non-commercial, non-industrial, non-institutional or similar uses that are not imported for sale
- Goods imported before July 1, 2026, for use in the motor vehicle and aerospace manufacturing industries
- Utility wind towers, or sections of those towers, for installation west of the Manitoba–Ontario border
In addition, the tariffs do not “stack,” meaning that if a particular good is subject to another tariff measure, then it will not be subject to this new tariff.
Finally, while there was no specific remission order for this particular tariff measure, general remission requests will be considered on a case-by-case basis, including where goods cannot be sourced domestically or where exceptional circumstances would cause severe adverse impacts on the Canadian economy.
Tariff Rate Quotas for Primary Steel Goods
Since June 27, 2025, Canada has imposed tariff rate quotas on imports of primary steel products to limit tariff-free import volumes. The quotas allow a specified quantity of steel to be imported without additional duties, with imports exceeding those limits subject to a 50% surtax.
Effective December 26, 2025, Canada reduced the tariff rate quotas from 50% to 20% of 2024 levels for countries with no free trade agreement with Canada, and from 100% to 75% of 2024 levels for countries with a free trade agreement with Canada (other than the United States and Mexico, where the Canada-United States-Mexico Agreement (CUSMA) applies).
Similar to the steel derivatives tariffs, remission is available for certain steel goods imported into Canada on or after June 27, 2025, for which there are no domestically produced alternatives. Importers must file their claim within two years of importation and not seek other tariff relief for those goods.
Remission Expiry for Counter-Tariffs on Steel, Aluminum and Automotive Imports
Since March 2025, Canada has imposed 25% counter-tariffs on U.S. imports of steel, aluminum and automotive products. To provide relief to certain industries, temporary broad-based remission has been available (upon import) for goods imported for use in healthcare, public safety or national defence and security, food manufacturing and packaging and agricultural processing, and motor vehicle and aerospace manufacturing (among others).
After two extension periods, this remission is now set to expire as follows:
- Effective February 1, 2026, remission is no longer available for steel goods imported for use in manufacturing, processing, food and beverage packaging and agricultural production, except steel goods used for the manufacturing of motor vehicles, aerospace goods, and their parts, for which remission will expire July 1, 2026
- Effective July 1, 2026, remission is no longer available for aluminum and for goods used for public health, healthcare, public safety and national security purposes
Very narrow remission will continue to be available for certain motor vehicle imports and for a list of specific goods and entities identified in the Regulations. That list was recently expanded to reflect additional remissions requested by companies and stakeholders. Similarly, a list of Chinese goods eligible for surtax remission was recently updated to provide relief to importers of certain steel and aluminum products.
Canada will continue to consider case-by-case remission requests where imports cannot be sourced domestically and to address exceptional circumstances that could have severe adverse impacts on the Canadian economy.
Looking Ahead
Importers of downstream steel derivative products now face new tariffs, while importers of primary steel face substantially reduced tariff rate quotas or exposure to a 50% surtax. In addition, importers of steel, aluminum and automotive products from the U.S. will no longer benefit from the horizontal remission measures after July 1, 2026.
Despite these tightened restrictions, the continued availability of remission and the government’s willingness to consider relief on a casebycase basis creates opportunities for importers to seek exemptions from these tariffs and, in some cases, recover tariffs paid in 2025.
For questions regarding the new tariffs and whether a remission order is an option for you, please contact the authors or any member of our International Trade group.
