The Government of Canada announced the implementation of tariff rate quotas (TRQs) on imports of steel mill products from non-free trade agreement partners, effective June 27, 2025. This measure will help stabilize the Canadian market and prevent harmful diversion of foreign steel from third countries into Canada while minimizing impacts on Canadian importers and downstream users.
The TRQs will be administered on the basis of five steel product categories: flat, long, pipe and tube, semi-finished, and stainless steel (see Annex A for list of tariff classifications applicable to each category). A 50 per cent surtax will be applied on imports of covered products that exceed the specified quantity threshold from non-FTA partners.
The quotas will be reviewed in 30 days to ensure their appropriateness and effectiveness in light of evolving market circumstances, and periodically thereafter. The reviews will be supported by the newly established industry-government steel task force.
Administration of the Tariff-Rate Quotas
Global Affairs Canada will be responsible for administering the quota of products that may be imported without this additional surtax through the issuance of shipment-specific import permits. To facilitate the administration of the TRQs, the subject products are being added to the Import Control List. Importations made without the applicable shipment-specific import permit will be assessed the 50 per cent surtax by the CBSA. This surtax would be additive to any existing surtaxes or anti-dumping and countervailing duty measures, as well as forthcoming tariff measures based on the country of "melt and pour" for steel or "smelt and cast" for aluminum.
Key elements of the tariff-rate quota include:
- Total quota volume: For each of the five steel product categories, a limit is imposed on the quantity of goods that may be imported without a surtax. The one-year limit corresponds to all of 2024 imports from non-FTA countries.
- Quota periods: The annual quota will be administered on the basis of three-month quarterly periods. Once the quota for a category in a quarter has been filled, imports under that category will be subject to a surtax for the remainder of that period. Any quota remaining at the end of a quarter will be rolled over into the following one.
- Country share limit: For each category, there is a limit on the share of the total quarterly quota that imports from a single country of origin can fill. The limits are based on historical trade patterns. If imports from a country reaches the specified limit in a category, all subsequent imports from that country in that category will be subject to the surtax, until the end of the quarter.
See Annex B for additional details on the tariff-rate quota volume and limits.
The TRQs will apply to imports originating in any country that does not have a free trade agreement in force with Canada. The list of countries excluded from the tariff-rate quotas are set out in Annex C.
Global Affairs Canada and the Canada Border Services Agency will be responsible for administering the tariff-rate quota for each steel product category. Additional information on the administration of these measures can be found at the links below:
- GAC Notice to Importers (will follow)
- CBSA Customs Notice (will follow)
Annex A - Steel Products Subject to Provisional Safeguards
| Product Category | Applicable Tariff Classifications |
|---|---|
Flat |
7208.10.00; 7208.25.00; 7208.26.00; 7208.27.00; 7208.36.00; 7208.37.00; 7208.38.00; 7208.39.00; 7208.40.00; 7208.51.00; 7208.52.00; 7208.53.00; 7208.54.00; 7208.90.00; 7209.15.00; 7209.16.00; 7209.17.00; 7209.18.00; 7209.25.00; 7209.26.00; 7209.27.00; 7209.28.00; 7209.90.00; 7210.11.00; 7210.12.00; 7210.49.00; 7210.50.00; 7210.61.00; 7210.69.00; 7210.70.00; 7210.90.00; 7211.14.00; 7211.19.00; 7211.23.00; 7211.29.00; 7211.90.00; 7212.10.00; 7212.30.00; 7212.40.00; 7212.50.00; 7225.19.00; 7225.30.00; 7225.40.00; 7225.50.00; 7225.91.00; 7225.92.00; 7225.99.00; 7226.91.00; 7226.92.00; 7226.99.00 |
Long |
7213.10.00; 7213.20.00; 7213.91.00; 7213.99.00; 7214.10.00; 7214.20.00; 7214.91.00; 7214.99.00; 7216.10.00; 7216.21.00; 7216.22.00; 7216.31.00; 7216.32.00; 7216.33.00; 7216.40.00; 7216.50.00; 7216.99.00; 7217.10.00; 7217.20.00; 7217.30.00; 7217.90.00; 7224.10.00; 7227.10.00; 7227.20.00; 7227.90.00; 7228.30.00; 7228.40.00; 7228.50.00; 7228.60.00; 7228.70.00; 7228.80.00; 7229.20.00; 7229.90.00; 7301.10.00; 7301.20.00 |
Pipe and Tube |
7304.19.00; 7304.22.00; 7304.23.00; 7304.24.00; 7304.29.00; 7304.39.00; 7304.59.00; 7304.90.00; 7305.11.00; 7305.12.00; 7305.19.00; 7305.20.00; 7305.31.00; 7305.39.00; 7305.90.00; 7306.19.00; 7306.29.00; 7306.30.00; 7306.50.00; 7306.61.00; 7306.69.00; 7306.90.00 |
Semi-finished |
7206.10.00; 7206.90.00; 7207.11.00; 7207.12.00; 7207.19.00; 7207.20.00; 7224.90.00 |
Stainless |
7218.10.00; 7218.91.00; 7218.99.00; 7222.30.00; 7222.40.00; 7304.49.00 |
Annex B - Tariff-Rate Quota Volumes
| Product | Quota for each three-month quarterly period (tonnes) | Maximum Share of Total Quota per Country |
|---|---|---|
| Flat | 186,856 | 36% |
| Long | 178,512 | 28% |
| Pipe and Tube | 117,406 | 47% |
| Semi-finished | 152,383 | 72% |
| Stainless | 5,568 | 91% |
Annex C - Excluded Countries of Origin
- Australia
- Austria
- Belgium
- Brunei Darussalam
- Bulgaria
- Canada
- Chile
- Colombia
- Costa Rica
- Croatia
- Cyprus
- Czechia
- Denmark
- Estonia
- Finland
- France
- Germany
- Greece
- Honduras
- Hungary
- Iceland
- Ireland
- Israel
- Italy
- Japan
- Jordan
- South Korea
- Latvia
- Liechtenstein
- Lithuania
- Luxembourg
- Malaysia
- Malta
- Mexico
- Netherlands
- New Zealand
- Norway
- Panama
- Peru
- Poland
- Portugal
- Romania
- Singapore
- Slovakia
- Slovenia
- Spain
- Sweden
- Switzerland
- Ukraine
- United Kingdom
- United States
- Vietnam
