Effective June 27, 2025, the Canadian government has introduced tariff quotas on steel imports from countries without a free trade agreement with Canada. The move is designed to safeguard the domestic steel industry from an influx of low-cost foreign products, which officials say could destabilize market conditions and undermine local production.

Under the new policy, steel imports exceeding designated quotas will face a 50% surcharge. The affected categories include flat products, long products, pipe and tube, semi-finished products, and stainless steel. Importers seeking to bypass the surcharge must obtain permits from Global Affairs Canada, which will assess applications on a case-by-case basis.

Quota levels are based on 2024 import volumes and will be monitored and allocated quarterly to ensure a balanced distribution. Each country will have its own quota limits to prevent any single nation from dominating Canada’s steel import market.

The government aims to support domestic steelmakers and maintain fair competition while still allowing controlled access for foreign suppliers. Officials say the measure is part of a broader strategy to ensure long-term sustainability and resilience of the national steel sector in a globally competitive environment.