The Surtax on Imports of Certain Steel Goods Remission Order, 2025 (SOR/2025-287) establishes a framework for granting remission of the 50 per cent surtax applied to certain imported steel goods under the Customs Tariff. This measure responds to concerns arising from the implementation of tariff-rate quotas (TRQs) on June 27, 2025, which imposed a surtax on steel imports exceeding quota limits, particularly for products from countries without a free trade agreement (non-FTA partners). The TRQs were initially designed to mitigate risks of trade diversion due to global excess steel capacity and U.S. import restrictions under section 232 of the U.S. Trade Expansion Act of 1962. While the TRQs aimed to protect the domestic market and Canadian steel producers, importers raised issues regarding products that were not domestically produced and goods that were already in transit prior to the adjusted TRQs effective August 1, 2025, which reduced non-FTA quota volumes by 50 per cent and refined product categories.

The Remission Order provides two primary avenues for relief. First, it allows remission for steel goods in transit to Canada on or before August 1, 2025, provided the goods are imported on or after that date, no other remission claims have been granted for the goods, and the importer submits a claim to the Minister of Public Safety and Emergency Preparedness within two years of importation. Second, remission is available for specific classes of steel goods detailed in a schedule, including steel billets and blooms, various line pipes, and steel plates meeting precise dimensions and grades.

The schedule of eligible goods identifies steel products that lack domestically produced alternatives or that have technical specifications essential for specific industrial applications. These include round alloy steel bars used for oil country tubular goods or line pipes, unfinished seamless carbon or alloy steel line pipes, flat-rolled steel under 6.35 mm in thickness, steel plates of grades A572-42 or A516-70 with substantial thickness or vacuum-degassed treatment, and large hollow structural sections with significant manganese content. The specificity of these descriptions ensures that the remission is targeted to goods that cannot be substituted with Canadian-produced alternatives, aligning with the broader objective of supporting domestic supply chains while mitigating unintended financial impacts on importers.

The regulatory impact analysis explains that the TRQs and associated 50 per cent surtax were intended to stabilize the Canadian steel market, prevent harmful diversion of foreign steel, and balance trade policy considerations with domestic industry needs. Reviews of TRQ implementation are conducted regularly, supported by an industry-government steel task force. Adjustments introduced through the August 1, 2025, TRQs included restructuring product categories from five broad groups to 23 subcategories, reducing non-FTA quota volumes to half of 2024 levels, and imposing single general quotas administered on a first-come, first-served basis with maximum allocations per country. Importations that were initially subject to TRQs but no longer covered under the revised framework were not counted toward these allocations.

Canada (287/2025) January 13, 2026
Disclaimer: Insights are for informational purposes only and does not reflect RRI’s official position or constitute legal opinion.