July 10th, 2025 – Effective June 27th, 2025, the Government of Canada introduced tariff-rate quotas (TRQs) on certain steel mill products imported from countries that do not have a free trade agreement (FTA) with Canada. This measure aims to stabilize the domestic steel industry and prevent trade diversion caused by global steel restrictions.
Affected Steel Categories
TRQs will apply to the following five product groups:
Flat Steel (e.g., hot-rolled and cold-rolled sheets, plates, and coils)
Long Steel (e.g., bars, rods, and structural shapes)
Pipe and Tube (e.g., welded and seamless pipe)
Semi-finished Steel (e.g., slabs and billets)
Stainless Steel (e.g., stainless coils, bars, and pipes)
Full tariff codes for each category are available upon request or through Global Affairs Canada (GAC).
Key Details on TRQs
Quota Limits: TRQs will be administered on a quarterly, first-come-first-served basis. Shipments within the quota require shipment-specific permits issued by GAC.
Surtax: Imports from non-FTA countries without a permit will face a 50% surtax in addition to applicable duties.
Quota Periods: Quotas are administered every three months. Unused volumes may be carried forward to the next period.
Country Share Caps: Each country will be subject to a maximum percentage of the total quarterly quota by product category.
| Category | Quarterly Quota (tonnes) | Max % Per Country |
|---|---|---|
| Flat Steel | 186,856 | 36% |
| Long Steel | 178,512 | 28% |
| Pipe and Tube | 117,406 | 47% |
| Semi-finished Steel | 152,383 | 72% |
| Stainless Steel | 5,568 | 91% |
Permit Requirements
Importers or customs brokers must obtain shipment-specific permits through GAC. Permit issuance is subject to service fees. Shipments arriving without a valid permit will automatically incur the 50% surtax.
Ongoing Monitoring
The TRQ system will be reviewed 30 days after implementation and regularly thereafter by a joint industry-government steel task force.
Exempt Countries
Steel imports from the following FTA partner countries are exempt from TRQs:
Australia, Canada, Chile, Colombia, Costa Rica, the European Union (including all member states), Israel, Japan, Jordan, South Korea, Mexico, Panama, Peru, Singapore, Ukraine, the United Kingdom, the United States, Vietnam, and others.
A complete list is available upon request.
What Importers Should Do
Assess your supply chain for exposure to non-FTA countries.
Budget for potential surtax liabilities.
Apply early for permits to avoid disruptions or unplanned duties.
Should you have any questions, contact our Import Compliance team or give us a call at 518-785-6000.
