Canada Implements Tariff‑Rate Quotas on Steel Mill Imports and Here’s What You Need to Know
- marketing92059
- Jul 7
- 2 min read
Updated: Jul 8
Effective June 27, 2025, the Canadian government has started limiting how much steel can be imported from countries without a free trade agreement (FTA). This is a response to growing concerns that global steel, especially shipments diverted from the U.S. is flooding into Canada.
What’s Happening?
Canada is applying Tariff-Rate Quotas (TRQs) on steel mill products.
That means:
You can still import steel from non-FTA countries up to a set volume.
Once that quota is used up, any extra imports get hit with a 50% surtax.
The surtax is in addition to existing duties or anti-dumping tariffs.
Which Products Are Affected?
The TRQs apply to five types of steel products:
Flat-rolled products
Long products
Pipe and tube
Semi-finished steel
Stainless steel
Stainless Steel Products Subject to 50% Surtax as of June 27, 2025:
Codes | Description |
7218.10.00 | Stainless steel in ingots or other primary forms; semi-finished products of stainless steel - Ingots and other primary forms |
7218.91.00 | Stainless steel in ingots or other primary forms; semi-finished products of stainless steel - Of rectangular (other than square) cross-section |
7218.99.00 | Stainless steel in ingots or other primary forms; semi-finished products of stainless steel - Blooms, billets, rounds, slabs, and sheet bars |
7222.30.00 | Other bars and rods of stainless steel; angles, shapes, and sections of stainless steel - Containing indentations, ribs, grooves, or other deformations produced during the rolling process |
7222.40.00 | Other bars and rods of stainless steel; angles, shapes, and sections of stainless steel Angles, shapes, and sections, Profile wire |
7304.49.00 | Tubes, pipes, and hollow profiles, seamless, of iron (other than cast iron) Other, of circular cross-section, of stainless steel, Hollow profiles |
How Will Quotas Be Managed?
Quotas reset quarterly, so there are four windows each year.
Country caps apply—each non-FTA country can only supply a limited share.
Unused quota in one quarter can roll into the next.
Permits are required from Global Affairs Canada to bring in steel under quota.
What If You Go Over Quota?
If you import more than the allowed quota, either by volume or by country, the CBSA will charge a 50% surtax on the excess. This is on top of any other applicable duties, so costs can rise fast if you don’t plan ahead.
Why This Matters
The government is trying to:
Protect Canadian manufacturers from unfairly cheap imports
Prevent excess steel, originally headed to the U.S., from flooding Canada
Keep the market stable for domestic producers
What Should Importers & Manufacturers Do?
✅ Check your steel’s origin — If it’s from a non-FTA country, it may be subject to quota
✅ Apply early for import permits — Permits are needed to avoid the surtax
✅ Monitor quota usage — Once the cap is hit, costs go up
✅ Watch for changes — A government task force will review the policy regularly
“This temporary trade measure will help stabilize the Canadian steel market by addressing the risk that steel originally destined for the United States is redirected to Canada.” — François-Philippe Champagne, Minister of Finance and National Revenue
Click here to read the source article from the Department of Finance Canada
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