Steel import TRQs extended to 2027

Summary#

The Order Amending the Order Imposing a Surtax on the Importation of Certain Steel Goods extends Canada’s temporary tariff‑rate quota (TRQ) system for certain steel imports for one more year. It keeps a 50% surtax on steel that comes in above quota levels, updates some quarterly quota periods, adjusts a few quota volumes, and reclassifies a small set of tariff lines. The order comes into force on June 27, 2026 and is set to be repealed on June 27, 2027.

What it does#

• Extends the existing TRQ framework so the measure runs until June 27, 2027 instead of ending in 2026.
• Adds new quarterly quota periods for the extended year:
  • June 28, 2026 to September 29, 2026
  • September 30, 2026 to December 29, 2026
  • December 30, 2026 to March 29, 2027
  • March 30, 2027 to June 27, 2027
• Keeps the basic TRQ design and surtax levels:
  • Countries without a free trade agreement (FTA) face duty‑free access up to 20% of their 2024 volumes, with a 50% surtax above that.
  • Non‑CUSMA FTA partners get 75% of 2024 volumes duty‑free, with a 50% surtax above that.
  • United States and Mexico (CUSMA partners) remain exempt from these TRQs.
• Adjusts some quota volumes and single‑country limits based on updated 2024 Statistics Canada data. The changes affect a small number of product groups and lower or raise the quarterly tonnage for those items.
• Reclassifies four tariff lines (for certain rolled steel items) from hot‑rolled to cold‑rolled categories. The affected tariff lines include 7225.50.00.10, 7225.50.00.20, 7225.50.00.30, and 7225.50.00.40.
• Keeps the import control mechanism: importers need a shipment‑specific permit under the Import Control List (item 82) to bring in quota quantities surtax‑free. Permit issue stops once quota amounts are reached.
• Administrative costs and estimates:
  • Permit fees of up to $31 per permit.
  • The government estimates up to 15,000 permits could be issued over a year, at an estimated cost to businesses of $495,000.
  • The analysis gives upper‑bound notional surtax exposures of $1.1 billion for non‑FTA imports and $271 million for non‑CUSMA FTA imports, but says actual impacts are likely much lower.

Who's affected#

• Canadian primary steel producers and steel workers, who the measure is designed to protect.
• Importers of the covered steel goods, who must get shipment‑specific permits from Global Affairs Canada to avoid the surtax.
• Downstream manufacturers and other businesses that buy steel (construction, machinery, infrastructure, etc.), who could see higher costs or supply limits if quotas bind.
• Provincial and territorial governments and project planners in regions that rely on shipped steel supplies.
• Border and permit administrators: Canada Border Services Agency (CBSA) handles surtax collection at the border and Global Affairs Canada issues permits.

Why it matters#

• The government says the one‑year extension is meant to protect the Canadian steel industry from market disruption caused by foreign tariffs, excess global capacity, and the risk that steel diverted from other markets would flood Canada.
• For Canadian steel plants and the roughly 23,000 jobs in the sector, the measure aims to help stabilize production and prevent further job losses.
• For importers and businesses that use steel, the rule can mean higher costs if they import above quota or face permit delays. The surtax can be large (an out‑of‑quota duty of 50%).
• The change may also affect regional supply and timing for construction and manufacturing projects, and could influence which countries supply Canada’s steel — which has knock‑on effects for costs and, possibly, emissions intensity of imports.