Amendment to U.S. Surtax on Steel and Aluminum

Summary#

The Order Amending the United States Surtax Order (Steel and Aluminum 2025) updates which U.S.-origin steel and aluminum goods face extra surtaxes when imported into Canada. It sets two surtax rates — 25% and 50% — for different groups of tariff items and replaces the previous lists of covered goods with new schedules.

What it does#

• Defines which goods that originate in the United States are subject to an extra surtax when imported into Canada.
• Sets the surtax rates at 25% for goods listed in Schedules 1 and 2, and 50% for goods listed in Schedules 1.1 and 2.1.
• Replaces Schedules 1 and 2 with new Schedules 1, 1.1, 2 and 2.1 that list specific tariff item numbers for many steel and aluminum products.
• Keeps a transitional rule so goods already in transit to Canada when the change comes into force remain subject to the surtax rate that applied before the change.
• Excludes goods classified under certain special tariff provisions (Chapters 98 or 99) when those Chapter 98/99 items are not listed in the new schedules, even if the goods would otherwise fall under the listed steel or aluminum items.
• Ties the order’s coming-into-force to the day the United States Surtax Order (2026) takes effect; if this order was registered after that day, it instead comes into force on its registration day.

Who's affected#

• Canadian importers and customs brokers who bring steel and aluminum products in from the United States.
• Manufacturers and industries that use imported steel and aluminum (for example, construction, automotive, machinery and equipment sectors).
• U.S. exporters who sell steel and aluminum products to Canada.
• Freight forwarders and supply-chain managers who handle shipments that may be in transit when the change takes effect.

If you import or use U.S.-origin steel or aluminum, check whether your product’s tariff item number appears in the new schedules; the source material lists many specific HTS/tariff codes.

Why it matters#

• A 25% or 50% surtax adds a large additional cost to affected imports. That can raise input costs for businesses that rely on U.S. steel and aluminum.
• Higher import costs can change sourcing decisions, push buyers to look for non‑U.S. suppliers, or raise prices for downstream customers and consumers.
• The transitional rule for goods in transit may protect shipments that are already en route, but importers should confirm timing and classification to avoid surprises.
• The order was registered on September 4, 2026 and published in the Canada Gazette on September 23, 2026; the exact legal start date depends on when the United States Surtax Order (2026) comes into force (the Gazette text links the dates but does not show that other order’s effective date).