Canada Announces New Measures to Protect Steel and Lumber Industries (Updated)

Trade Update • Updated Dec. 17, 2025

Key Points

• Canada reduces steel import quotas and imposes a 25% tariff on certain steel-derivative products.
• Border enforcement is strengthened to prevent steel dumping and ensure surtax compliance.
• Temporary tariff remission on steel imports will end on January 31, 2026, to encourage the use of Canadian steel.
• Freight rates for transporting Canadian steel and lumber across provinces will be reduced by 50% starting Spring 2026.
• Build Canada Homes will prioritize projects using Canadian wood, generating $70–$140 million in demand.
• $100 million will support workers in Work-Sharing programs, benefiting up to 26,000 employees.
• Additional funding of $1 billion will support businesses through the BDC Softwood Lumber Guarantee Program and the Large Enterprise Tariff Loan facility.
• A Canadian Forest Sector Transformation Task Force will be launched to provide guidance on maintaining competitiveness and managing long-term industry transformation.
• On December 12, 2025, Canada issued an updated notice under the Second Amending Surtax Order, revising tariff-rate quotas for certain steel products: reducing import volumes for non-FTA and non-CUSMA FTA countries.
• New Q3 Steel TRQ Period: The third quota period begins December 26, 2025. Importers can submit permit applications starting 15 days in advance (from December 11, 2025). Applications are processed on a first-come, first-served basis through NEICS, with automatic checks and queuing for unavailable quota.

On November 26, 2025, the Government of Canada announced new measures to protect and grow its steel and lumber industries amid U.S. trade disruptions. The government is introducing new tariffs, limiting foreign imports, and supporting domestic producers. Measures include transport cost reductions, homebuilding initiatives, and financial support for workers and businesses. The goal is to strengthen Canadian industries, create domestic demand, and help companies and workers compete in global markets. These measures build on earlier initiatives by the government to support sectors most affected by tariffs.

In a separate announcement, Canada outlines in detail these new measures and provides backgrounds on production, trade exposure, workforce impacts, and the sectors’ roles in infrastructure, manufacturing, and regional economies.

Latest Updates

As of December 17, 2025, here are the most recent actions and developments affecting Canada’s steel and lumber sectors:

Q3 Steel TRQ Application Rules

Quota Period and Timing

The Q3 quota period starts on December 26, 2025. Importers may apply for steel TRQ permits up to 15 days before the shipment enters Canada. Applications can begin on December 11, 2025. The system rejects applications submitted earlier than the allowed window.

Permit Processing Basics

Steel TRQ permits are issued on a first-come, first-served basis, based on available quota at the time of application. The NEICS system reviews each request automatically.

System Validation Checks

NEICS confirms:

• The requested quantity fits within the remaining quota for the steel category and country of origin
• The entry date falls within the correct quota period

If quota is available, the system approves the application automatically.

When Quota Is Not Available

If the quota is fully used, the system places the application in a queue for review by a permit officer. When quota opens up, the importer receives a notice and can choose to proceed with the available quantity or submit a new request for any remaining amount.

Broker Submission Reminder

Brokers should select “Submit” instead of “Submit Auto-Route.” Auto-routing sends the request directly to a permit officer and prevents automatic processing.

Revised TRQs and Import Permits for Steel

On December 12, 2025, Canada issued an updated notice revising its tariff-rate quotas (TRQs) for certain steel products under item 82 of the Import Control List, effective December 26, 2025. These changes are part of the Second Amending Surtax Order.

TRQ Adjustments

• Reduced Import Volumes: TRQs for steel from non-FTA countries are set at 20% of 2024 levels (previously 50%), while TRQs for non-CUSMA FTA countries are reduced to 75% of 2024 volumes (previously 100%).
• Reclassification of Products: Some steel items have been moved between the line pipe, large diameter line pipe, and standard pipe categories. The structural steel category has removed tariff item 7216.91.00.10.
• Scope: These quotas cover all steel goods except those from Canada, the U.S., or Mexico. Detailed volumes and limits for each country are published in the updated notice.

Permit Requirements

• Shipment-Specific Permits: Importers must obtain permits from Global Affairs Canada to import steel within quota limits without surtax. Requests can be submitted up to 15 days before the expected arrival of the shipment.
• Permit Validity Rules: For shipments entering in a future quarter, the validity period starts on the first day of that quarter. For current-quarter shipments extending into the next quarter, the permit remains valid according to the updated rules.
• Tracking Quotas: TRQ usage is recorded when permits are issued and cannot carry over to the next quarter. Importers can access daily reports online showing detailed usage by product type and country of origin.

Note that steel imported without a valid permit, or above quota limits, must use the applicable General Import Permit and will be subject to surtaxes.

Steel Industry Measures

Import Limits and Tariffs

• A 25% global tariff will apply to targeted steel-derivative products, including wind towers, prefabricated buildings, fasteners, and wires. The tariff will cover over $10 billion in imports and apply to products where steel makes up a large portion of their value.
• Effective December 26, 2025, Canada will reduce tariff-free steel import quotas for countries without a free trade agreement from 50% to 20% of 2024 levels, with a 50% surtax on any over-quota imports.
• Also starting December 26, 2025, Canada will lower tariff‑free steel import quotas for countries with a free trade agreement (excluding the U.S. and Mexico) from 100% down to 75% of 2024 levels; any volumes beyond that threshold will incur a 50% surtax, while the existing CUSMA carve‑out remains unchanged.

Expiration of Temporary Counter-Tariff Remissions on U.S. Goods

The temporary remission of Canadian counter-tariffs on U.S. goods expires on December 15, 2025. Following this, the remission on U.S. steel used in manufacturing and related sectors ends January 31, 2026, but exemptions for autos, auto parts, and aerospace remain. Remission on aluminum products continues beyond this date.

Importers may still request relief under the remission framework issued earlier this year, which applies in specific cases, such as when inputs cannot be sourced domestically.

CBSA Update via The Honourable François-Philippe Champagne

“Thank you for reaching out and for flagging the implications for brokers and importers in general. I know how challenging it is to plan around an announcement of this scope without having the detailed rules in hand.

By way of context, the CBSA’s role is to administer surtax orders once they are made, rather than to design the underlying policy. The Prime Minister’s announcement came without advance technical parameters on our side as well, and we are now waiting for the Department of Finance to articulate the policy details in the surtax order.

At this point we do not yet have a firm timeline from Finance Canada for when the order and associated guidance will be finalized. Until we see the specific legal and policy parameters, it would be difficult for the CBSA to offer any implementation timeline with real certainty. What I can say is that I have already prepared my team to be available throughout the holiday period, including the statutory holidays, so that we can move quickly once the order is received and bring this measure to life as efficiently as possible.
I fully appreciate how difficult this uncertainty is for industry and for your clients.

If the timing and operational impacts are as challenging as I expect they may be, you may wish to make those concerns known directly to the Minister of Finance, so that his office has a clear line of sight to what you are experiencing on the ground.

In the meantime, we will move as quickly as we can once the policy parameters are confirmed.”

Border Enforcement

• The Canada Border Services Agency will have a dedicated steel compliance team.
• CBSA will conduct technical workshops with the Canadian Steel Producers Association to improve enforcement.
• A new Market Watch Unit will track steel market prices and update normal values for trade remedies.

Transport Support

• Freight rates for transporting Canadian steel across provinces will be cut by 50% starting Spring 2026, making domestic steel more affordable.

Lumber Industry Measures

Homebuilding and Demand Creation

• Build Canada Homes will prioritize shovel-ready, multi-year projects using Canadian wood products that can start within 12 months.
• The agency will receive roughly $700 million in funding next year, creating $70–$140 million in demand for Canadian lumber and attracting private and provincial investment.
  

Buy Canadian Policy

• Contracts over $25 million and federal grants will prioritize Canadian materials, including lumber and steel, across all programs.
  

Worker and Business Support

• $100 million over two years will support employees in Work-Sharing programs, helping up to 26,000 workers in steel and lumber sectors.
• $500 million will be added to the BDC Softwood Lumber Guarantee Program.
• $500 million will be provided through the Large Enterprise Tariff Loan facility for lumber companies facing liquidity challenges.
  

Simplified Access and Long-Term Planning

• A single-window system will help forestry companies access federal support programs.
• A Canadian Forest Sector Transformation Task Force will provide guidance to maintain competitiveness and manage long-term industry transformation.
  

Transport Support

• Similar to steel, freight rates for interprovincial transport of Canadian lumber will also be reduced by 50% starting in Spring 2026.

Prime Minister’s Statement

Additional Background Info

• Earlier this year, Canada introduced measures to support workers and businesses affected by U.S. tariffs and trade disruptions.
• Nearly 1,500 companies from steel, aluminum, lumber, manufacturing, automotive, and seafood sectors applied for assistance, including over 230 steel firms, with support being delivered rapidly.
• Funding is helping companies adopt new technologies, diversify products, secure domestic supply chain roles, and participate in global trade.
• Relief has reached nearly 37,000 Canadians, preventing more than 14,000 job losses.
• Overall employment is rebounding, with 120,000 new jobs created since March.

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