50% Surtax on Certain Steel Imports into Canada Effective June 27, 2025 (Updated)
Trade Update • June 30, 2025, updated July 3, 2025
GUIDANCE NOW AVAILABLE: Notice to importers: Item 82 – Steel goods – Serial No. 1139
Covers tariff-rate quotas, including detailed information on the purpose, coverage, quota volumes, duration, and method of administration
he Government of Canada has implemented a new surtax of 50% on the importation of specific steel goods, effective, under the Order Imposing a Surtax on the Importation of Certain Steel Goods.
This trade remedy responds to the growing risk of steel trade diversion into Canada following U.S. trade actions under Section 232 of the Trade Expansion Act.
Customs Notice 25-24: Order Imposing a Surtax on the Importation of Certain Steel Goods.
Goods Impacted
Goods Impacted by the order are: Flat, long, pipe & tube, semi-finished, and stainless steel products originating from non-FTA countries (as listed in Schedule 1 of the Order). Steel imports are now subject to Tariff Rate Quotas (TRQs). Importers must obtain shipment-specific import permits to qualify for surtax-free entry under the TRQ.
The surtax is set at 50% of the “value for duty” — that’s the declared value of the steel when it enters Canada. This surcharge is in addition to any existing duties or taxes already applicable to the product.
Example:
- Value for duty: $1,000.00 CAD
- Surtax (50%): $500.00 CAD
- Add regular taxes (e.g. GST)
- Total cost: $1,575.00 CAD
Exceptions to the Surtax
- Goods in transit to Canada before June 27, 2025 (with proof)
- Goods originating from countries listed in Schedule 2
- Casual goods and goods classified under Chapter 98 of the Customs Tariff
Compliance Points
- Importers must declare surtax using the correct CARM Surtax Code on the Commercial Accounting Declaration (CAD).
- Proof of origin is required and must align with applicable regulations.
- Retroactive permits may allow for surtax refund requests through CBSA.
- Steel importers may apply for shipment-specific permits from Global Affairs Canada to import the covered steel goods within quota volumes, free of the surtax set out in this Surtax Order.
- Importers remain responsible for tracking quota utilization via Global Affairs Canada online portal
Refunds, Corrections and Appeals
- Adjustments may be submitted via the CARM Client Portal or EDI/API.
- Surtax determinations by CBSA are subject to review under Section 60 of the Customs Act 50% surtax imposed by Governor in Council, is not appealable.
- 50% surtax imposed by Governor in Council, is not appealable.
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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