June 27, 2025 – Ottawa, Ontario – Department of Finance Canada

Today, the Minister of Finance and National Revenue, the Honourable François-Philippe Champagne, announced the implementation of new tariff rate quotas (TRQs) for steel mill products imported into Canada from non-free trade agreement (FTA) partners. The TRQs, set at 2.6 million tonnes, will result in a 50 per cent surtax being applied on steel imports above 2024 levels from non-FTA partners. The measure is effective June 27, 2025, and will be reviewed in 30 days.

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. The combination of tariffs imposed by the U.S. on all steel imports and global overcapacity, caused by non-market practices, has led many exporters to seek new markets. This measure helps manage that pressure without disrupting supply for Canadian users.

This measure builds on Canada’s broader strategy to defend its workers and industries against unfair trade, including non-market policies and practices. This surtax would be additive to any existing surtaxes or anti-dumping and countervailing duty measures, as well as forthcoming tariff measures based on the country of “melt and pour” for steel.

The decision to impose these TRQs is based on the public consultations, held earlier this spring, on options to address risks to Canada’s steel industry. The quotas will be reviewed in 30 days from today to ensure their appropriateness and effectiveness in light of evolving market circumstances, including progress in the broader trading arrangement with the United States, and periodically thereafter. The reviews will be supported by the newly established industry-government steel task force, which met for the first time on June 26.

The government remains prepared to take additional steps as needed and will continue to review the appropriateness of its response, pending developments with U.S. tariffs.