The world is changing rapidly-and the Government of Canada is focused on what we can control-building a stronger, more independent, more resilient Canadian economy. We are moving with speed and ambition to diversify our trade partners abroad and build our strength at home.
Today, the Honourable François-Philippe Champagne, Minister of Finance and National Revenue, announced the government will be extending key steel and aluminum tariff measures for one year.
Subject to approval by the Governor in Council, Canada will extend its steel tariff-rate quotas (TRQ) regime for imports from non-CUSMA partners, and the existing horizontal tariff relief for eligible steel and aluminum products from the United States (U.S.), and additionally, for eligible steel products subject to derivative tariffs. These measures would be extended to June 27 and June 30, 2027, respectively.
This proposed one-year extension is part of Canada's commitment to defend steel workers and industry against steel trade diversion and non-market policies and practices that drive global excess capacity. It will provide producers and importers with greater business predictability and longer-term certainty.
Following the planned extension of steel TRQs, the government intends to initiate efforts towards the inclusion of an allocations-based approach for the administration of quota for certain product classes. Stakeholders, including producers and importers, will be offered the opportunity to share their views on the approach, reflecting the government's ongoing commitment to review and improve the TRQ framework.
Current quota levels for the TRQs would continue to be based on 20% of 2024 volumes for partners without a free trade agreement with Canada, and 75% for partners with a free trade agreement in force with Canada. Imports exceeding quota limits will continue to be subject to a 50% tariff. Canada will also continue to exempt its CUSMA partners, the United States and Mexico, from the TRQs.
Concurrent with these extensions, the government will engage with Canadian producers to ensure its remission processes continue to support a competitive domestic steel marketplace.
At this critical time in Canada's history, Canada's new government is ensuring strategic sectors are ready to seize new domestic and international markets, and that Canadian workers and businesses have the certainty they need to build Canada strong for all.
