The Government of Canada has introduced tariff quotas on steel imports from countries outside its free trade agreements, effective June 27, 2025. The measure aims to shield the domestic steel industry from an influx of low-cost imports that threaten local producers and pricing stability.
Under the new policy, a 50% surcharge will be applied to import volumes that exceed predefined quotas across five key steel product categories: flat products, long products, pipe and tube, semi-finished steel, and stainless steel. To import steel without incurring the surcharge, companies must obtain special permits from Global Affairs Canada.
Quota allocations are based on 2024 import volumes and will be monitored and distributed quarterly. The system also introduces country-specific quotas to prevent dominance by any single supplier nation and to ensure a balanced import profile.
The Canadian government stated that this approach will help maintain fair competition in the domestic market while continuing to meet demand for specialized steel products not readily produced in Canada. The new policy marks a significant step in Canada’s broader trade and industrial strategy, especially in the face of rising global overcapacity and aggressive export practices from certain non-FTA steel-producing countries.
