The Government of Canada has taken a series of trade actions in response to tariffs imposed by the United States and China, while providing pathways for remission in cases where surtaxes would create undue hardship or harm to Canadian economic interests. Following the United States’ imposition of tariffs on Canadian goods under the International Emergency Economic Powers Act (IEEPA), Canada responded by introducing its own countermeasures to defend domestic industries. Beginning on March 4, 2025, Canada applied 25% surtaxes on $30 billion worth of U.S. goods, expanding these measures over the following weeks to cover an additional $29.8 billion in products, including steel, aluminum, and certain light vehicles.

While many stakeholders supported the counter-tariffs as a necessary assertion of sovereignty, Canadian manufacturers raised concerns about supply chain limitations, particularly where alternative non-U.S. suppliers did not exist or could not meet technical or certification requirements. To address these challenges, the Government introduced the United States Surtax Remission Order (2025), which allowed for relief in exceptional cases involving public health, public safety, and national security, as well as for manufacturing inputs and packaging materials.

Parallel to the U.S. measures, Canada also imposed tariffs on Chinese goods to counter unfair trade practices. A 100% surtax on Chinese-made electric vehicles and a 25% surtax on Chinese steel and aluminum were introduced in late 2024 through the China Surtax Order (2024). Recognizing the potential economic strain on domestic industries dependent on such materials, the China Surtax Remission Order (2024) was implemented to allow case-by-case relief, especially for sectors unable to source equivalent goods elsewhere. Amendments in 2025 broadened this relief to include additional steel and aluminum products identified as essential or in short supply.

The Order Amending the China Surtax Remission Order (2024) and the United States Surtax Remission Order (2025) (2025-1) serves to provide targeted tariff relief on specific goods deemed critical for the oil and gas sector, among other industries. Of particular note are items classified under tariff headings 7304.39.00.70, 7304.49.00.90, and 7304.51.00, which refer to various forms of seamless tubes and pipes used in oil and gas applications. These include non-alloy iron and steel pipes with diameters between 25 mm and 406 mm and wall thicknesses up to 50 mm; stainless steel tubes with bright or pickled finishes used in oil and gas services; and alloy steel drill pipes and completions equipment with diameters up to 355 mm. These products are integral to the energy industry’s operations, and their availability is vital for exploration, drilling, and production activities across Canada’s resource sectors.

By including these specific classifications within the scope of remission, the Government aims to alleviate cost pressures for energy producers who rely on specialized steel tubing that is often unavailable from domestic or non-U.S. suppliers.

Canada (210/2025) November 11, 2025
Disclaimer: Insights are for informational purposes only and do not reflect RRI’s official position or constitute legal opinion.