Are you aware of changes that could impact your Canadian imports of certain steel derivative products from all countries?
Are you affected by recent announcements from the Prime Minister’s office?
Effective December 26, 2025, the Government of Canada is imposing 25 per cent tariffs on the full value of the steel derivative products.
To give Canadian businesses stability as they adjust supply chains, the horizontal remission of Canadian tariffs on imports from the United States has been temporarily extended as follows:
The Minister of Finance advised to give Canadian businesses stability as they adjust supply chains, the horizontal remission of Canadian tariffs on imports from the United States has been temporarily extended as follows:
- For steel goods, used for manufacturing, processing, food and beverage packaging, and agricultural production in Canada is extended to January 31, 2026 (this would represent the current OIC 25-0466C)
- For steel goods used for the manufacturing of motor vehicles, aerospace goods, and their parts, for which remission is extended to June 30, 2026.
- For aluminum goods used for manufacturing, processing, food and beverage packaging, and agricultural production in Canada remission is extended to June 30, 2026.
- For goods used for public health, health care, public safety and national security purposes remission is extended to June 30, 2026.
The Government of Canada also published the list of imported steel-derivative products that will be subject to a 25 per cent global tariff, effective December 26, 2025 (steel derivative products).
Canada maintains a non-stackable policy for its tariffs on steel and aluminum. The tariff will not apply to the following:
- Goods that are subject to a tariff under the China Surtax Order (2024), the United States Surtax Order (Steel and Aluminum 2025), the Order Imposing a Surtax on the Importation of Certain Steel Goods or the Steel Goods and Aluminum Goods Surtax Order;
- Goods that are casual goods, as defined in section 2 of the Persons Authorized to Account for Casual Goods Regulations;
- Goods that are classified under a tariff item of Chapter 98 of the List of Tariff Provisions, even if the goods are otherwise classifiable under a tariff item set out in the schedule;
- Goods that are imported before July 1, 2026 for use in the manufacture of motor vehicles or chassis for motor vehicles or in the manufacture of parts of or accessories for motor vehicles or chassis for motor vehicles;
- Goods that are imported before July 1, 2026 for use in aircraft, ground flying trainers or spacecraft or in parts of aircraft, ground flying trainers or spacecraft;
- Utility wind towers, and sections of those towers, that are classified under tariff item 7308.20.00 and imported for installation in energy projects located west of the Ontario–Manitoba border; and
- Goods that are in transit to Canada on the day on which tariffs come into force.
The extended remission period will provide more predictability to businesses as they adjust their supply chains to transition from imported sources to Canadian domestic supply. Descriptions are included for illustrative purposes, with the scope established by the tariff item in steel derivative products.
Requests for remission of tariffs on derivative products will be considered on a case-by-case basis to address situations where goods cannot be sourced domestically or other exceptional circumstances that could have severe adverse impacts on the Canadian economy. Willson can be available to assist with remission requests to the agency.
Importers who have benefitted from the China Surtax Remission Order (2024) (SOR/2025-12) are reminded that Order is set to expire on December 31, 2025, specific to the goods listed in Schedule 1. All goods listed in Schedule 2 are importer specific.
Additional details on the administration of these tariffs will be published in a Notice on the Canada Border Services Agency website. For precise descriptions, please refer to the Schedule to Canada’s Customs Tariff.
If you have any additional questions related to the new steel initiatives, please forward your inquiries to Transition Team Canada.