Canada’s Steel Surtax Extended to June 2027: What’s Changing June 28, 2026
Published June 16, 2026
Key Points
- Customs Notice 25-24 was updated June 13, 2026 to reflect the Third Amending Surtax Order, which extends the steel TRQ surtax regime through June 27, 2027.
- Revised quota volumes take effect June 28, 2026, the start of Year 2.
- Schedules 1 and 2 were updated with new TRQ volumes, and certain tariff classification numbers were reassigned between product classes.
- The 50% surtax on over-quota and over-allocation imports remains unchanged.
- No in-transit exemption applies to this amendment — unlike the original June 2025 measure.
On June 13, 2026, the Canada Border Services Agency (CBSA) updated Customs Notice 25-24 to incorporate the Third Amending Order, which extends the surtax framework to June 27, 2027 and revises the quota volumes that determine when the 50% surtax applies. The amendment changes Schedules 1 and 2, which introduce new volumes for certain TRQs and reassign certain tariff classification numbers to different product classes. The changes apply to goods imported from June 28, 2026 onward.
When the 50% Surtax Applies (From June 28, 2026 Onward)
Under the third Amending Order, the 50% surtax applies in any of these situations:
- For non-FTA countries, the total quantity of goods in a class imported during the quarter exceeds the amount in column 2 of Schedule 1 for that class; or
- For FTA countries, the total quantity of goods in a class imported during the quarter exceeds the amount in column 2 of Schedule 2 for that class; or
- For non-FTA countries, the quantity of goods in a class originating in a single country and imported during the quarter exceeds column 3 percentage of Schedule 1 multiplied by the column 2 total of Schedule 1 for that class; or
- For FTA countries, the quantity of goods in a class originating in a single country and imported during the quarter exceeds column 3 percentage of Schedule 2 multiplied by the column 2 total of Schedule 2 for that class.
Other Changes
The Third Amending Order also implements the following additional changes:
- Revised Quota Volumes. The Order introduces new volumes for certain TRQs in Schedules 1 and 2 to the Order. These revised quotas apply to goods imported from June 28, 2026 onward, against which surtax applicability is determined. For the specific quantity of goods importable under each TRQ without surtax from June 28, 2026 to June 27, 2027, consult GAC’s Notice to Importers No. 1163. You may also check out GHY’s update on the revised TRQs effective June 28, 2026.
- Reassigned Tariff Classifications. The Third Amending Order reassigns certain tariff classification numbers to different product classes.Updated lists of the commodities (HS codes) covered by each TRQ are set out in Section C12 of the Commodity Codes Handbook, which importers should consult to confirm the current class of their goods.
Background
Canada’s steel TRQ surtax has been amended several times since it took effect. The original Order (SOR/2025-148) imposed a 50% surtax on June 27, 2025, on certain steel goods exceeding quarterly quota volumes, originating outside Canada, the U.S., and Mexico, in response to steel trade diversion following U.S. Section 232 tariffs and global overcapacity.
- The first amending Order (SOR/2025-155), effective August 1, 2025, established that where multiple surtaxes could apply, only this surtax applies, and ended the carry-forward of unused quarterly quota.
- The second amending Order (SOR/2025-266), effective December 26, 2025, made technical scope changes, removed one tariff line from the structural steel category, and reduced tariff-free quota volumes for non-CUSMA FTA and non-FTA countries to 75% and 20% of 2024 levels, respectively.
- The third amending Order, reflected in the June 13, 2026 update to Customs Notice 25-24, extends the TRQ surtax through June 27, 2027 and revises Schedules 1 and 2 with new volumes for certain TRQs and the reassignment of certain tariff classification numbers to different product classes, effective June 28, 2026.
How GHY Can Help?
GHY specializes in helping businesses navigate and reduce the impacts of tariffs through strategic solutions tailored to their needs. Our experts can audit your supply chain to identify inefficiencies, uncover cost-saving opportunities, and ensure compliance with evolving trade regulations. We also employ tariff engineering techniques to optimize product classification and sourcing strategies, minimizing duty exposure and maximizing profitability.
By partnering with GHY, your business gains access to the tools and expertise needed to streamline operations and stay competitive in a challenging trade environment.
Contact Us Today! Booking a Meeting, email consult@ghy.com, or call +1 (800) 667-0771.
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