Steel Derivative Surtax Amendments

Summary#

The Order Amending the Steel Derivative Goods Surtax Order: SOR/2026-155 changes who is exempt from a surtax on certain steel-derivative imports. It adds an origin rule tied to the CUSMA marking regulations, creates temporary carve-outs for vehicle and aerospace supply chains until July 1, 2027, and makes parts of the change retroactive to December 26, 2025. The Order was registered on June 22, 2026.

What it does#

• Adds an interpretation saying the origin of goods for the surtax is to be determined according to the Determination of Country of Origin for the Purpose of Marking Goods (CUSMA Countries) Regulations.
• Replaces two exemptions so that the surtax does not apply to goods imported before July 1, 2027 when they are used:
  • in the manufacture of motor vehicles, vehicle chassis, or their parts and accessories; and
  • in aircraft, ground flying trainers, spacecraft, or their parts.
• Adds a new exemption for goods that are originating in Canada.
• Sets the coming-into-force rules:
  • The Order generally comes into force on the day it is registered (June 22, 2026).
  • The new interpretation and the exemption for Canadian-origin goods are treated as having come into force on December 26, 2025 (immediately after the original surtax order took effect).

Who's affected#

• Manufacturers and suppliers in the automotive sector who import steel-derived inputs for making vehicles, chassis, parts, or accessories.
• Aerospace companies that import steel-derived inputs for aircraft, trainers, spacecraft, or their parts.
• Importers and customs brokers who handle steel-derivative goods subject to the surtax.
• Businesses trying to claim Canadian origin for goods under the surtax rules (because origin is now tied to the CUSMA marking rules).
• If it’s unclear who is affected in a specific case, importers should check how origin is determined under the Determination of Country of Origin for the Purpose of Marking Goods (CUSMA Countries) Regulations.

Why it matters#

• Whether the surtax applies can now depend on the same origin rules used for CUSMA marking. That can change which imports are exempt as “Canadian” and lower costs for some businesses.
• The temporary carve-outs until July 1, 2027 give vehicle and aerospace supply chains extra time without surtax on qualifying inputs. That can affect prices and sourcing decisions.
• The retroactive element to December 26, 2025 could affect duties or refunds for imports made after that date if they now qualify for the exemption.
• For most people this is a business-to-business customs and supply-chain issue, but it can influence product prices, factory decisions, and where companies source steel-derived parts.