Finance Canada has announced an important regulatory amendment extending crucial duty relief for Canadian manufacturers reliant on specialized cross-border supply chains.
The Order Amending the Steel Derivative Goods Surtax Order (SOR/2026-155) Steel Derivative Goods Surtax Order has been officially published in the July 1, 2026, edition of the Canada Gazette, Part II. This update ensures ongoing market competitiveness by protecting critical manufacturing inputs from punitive trade measures.
Key Regulatory Updates
- Exemption Extension: The temporary tariff exemptions for key automotive and aerospace manufacturing inputs—originally scheduled to expire—have been formally extended to June 30, 2027.
- The Protected Categories: The 25% surtax will continue to be waived for:
- Goods imported for use in the manufacture of motor vehicles, chassis, or their related parts and accessories.
- Goods imported for use in aircraft, ground flying trainers, spacecraft, or their corresponding components.
- Origin Safeguard: The amendment also explicitly clarifies that goods originating in Canada are fully exempt from the scope of this surtax order.
Operational Impact: This one-year extension aligns directly with Canada’s broader horizontal tariff relief strategies, providing domestic aerospace and automotive producers with predictable business planning and longer-term cost certainty through mid-2027.
Verifying Your Declarations: To ensure your qualifying imports bypass the 25% surtax automatically at the border, specific end-use accounting declarations must be precisely maintained. If you have questions regarding the classification of your derivative steel inputs or require confirmation on compliance requirements, please reach out to our Canadian regulatory team.