Canada begins implementing a tariff quota system on steel imports to protect domestic industry

The Government of Canada announced the implementation of tariff quotas on steel product imports from non-FTA partners, effective June 27, 2025. This measure will help stabilize the Canadian steel market. These measures aim to protect the domestic market from the influx of low-priced products that could harm domestic industry.

50% Surcharge on Exceeding Quotas

Under the new system, a 50% surcharge will be imposed on imported quantities exceeding quotas in five major steel product categories: flat products, long products, Pipe and Tube, semi-finished products, and stainless steel. Exemptions from these duties will require import permit applications issued by Global Affairs Canada. Quota Distribution Based on 2024 Data and Quarterly Monitoring Quota sizes are determined based on 2024 import data and will be distributed on a quarterly basis. Separate quotas will also be applied to each country to avoid the concentration of imports from one country.

According to the Canadian Ministry of Finance:

The quarterly quota for flat products is approximately 186,856 tonnes, with a maximum of 36%; the quota for long products is approximately 178,512 tonnes, with a maximum of 28%; the quota for Pipe and Tube is approximately 117,406 tonnes, with a maximum of 47%; the quota for semi-finished products is approximately 152,383 tonnes, with a maximum of 72%; and the quota for stainless steel is approximately 5,568 tonnes, with a maximum of 91%.

Tighter Licensing and Warning of Automatic Tariffs

The decision confirmed that any steel shipment entering without a prior import license will be automatically subject to an additional 50% duty, in addition to any existing duties, including anti-dumping duties or duties related to the origin of production and casting.

Government review expected within 30 days.

Global Affairs Canada, in cooperation with the Canada Border Services Agency, will oversee implementation of the decision. The government also announced that it will conduct a comprehensive review within 30 days of implementation, through a joint working group comprising government and steel industry representatives, to assess market compliance and update policies as needed.