Starting June 27, 2025, the Government of Canada will introduce tariff-rate quotas (TRQs) on imports of steel mill products from countries without a free trade agreement (FTA) with Canada. This move is intended to stabilize the domestic steel market and prevent trade diversion from third countries impacted by global restrictions.
Steel Categories Affected:
TRQs will apply across five product categories:
Flat steel – 7208.10.00; 7208.25.00; 7208.26.00; 7208.27.00; 7208.36.00; 7208.37.00; 7208.38.00; 7208.39.00; 7208.40.00; 7208.51.00; 7208.52.00; 7208.53.00; 7208.54.00; 7208.90.00; 7209.15.00; 7209.16.00; 7209.17.00; 7209.18.00; 7209.25.00; 7209.26.00; 7209.27.00; 7209.28.00; 7209.90.00; 7210.11.00; 7210.12.00; 7210.49.00; 7210.50.00; 7210.61.00; 7210.69.00; 7210.70.00; 7210.90.00; 7211.14.00; 7211.19.00; 7211.23.00; 7211.29.00; 7211.90.00; 7212.10.00; 7212.30.00; 7212.40.00; 7212.50.00; 7225.19.00; 7225.30.00; 7225.40.00; 7225.50.00; 7225.91.00; 7225.92.00; 7225.99.00; 7226.91.00; 7226.92.00; 7226.99.00
Long steel – 7213.10.00; 7213.20.00; 7213.91.00; 7213.99.00; 7214.10.00; 7214.20.00; 7214.91.00; 7214.99.00; 7216.10.00; 7216.21.00; 7216.22.00; 7216.31.00; 7216.32.00; 7216.33.00; 7216.40.00; 7216.50.00; 7216.99.00; 7217.10.00; 7217.20.00; 7217.30.00; 7217.90.00; 7224.10.00; 7227.10.00; 7227.20.00; 7227.90.00; 7228.30.00; 7228.40.00; 7228.50.00; 7228.60.00; 7228.70.00; 7228.80.00; 7229.20.00; 7229.90.00; 7301.10.00; 7301.20.00
Pipe and tube – 7304.19.00; 7304.22.00; 7304.23.00; 7304.24.00; 7304.29.00; 7304.39.00; 7304.59.00; 7304.90.00; 7305.11.00; 7305.12.00; 7305.19.00; 7305.20.00; 7305.31.00; 7305.39.00; 7305.90.00; 7306.19.00; 7306.29.00; 7306.30.00; 7306.50.00; 7306.61.00; 7306.69.00; 7306.90.00
Semi-finished steel – 7206.10.00; 7206.90.00; 7207.11.00; 7207.12.00; 7207.19.00; 7207.20.00; 7224.90.00
Stainless steel – 7218.10.00; 7218.91.00; 7218.99.00; 7222.30.00; 7222.40.00; 7304.49.00
How TRQs Work:
Quota Limits: Imports within quarterly quota volumes will be allowed with the required shipment-specific permits issued by Global Affairs Canada (GAC) without attracting surtax. Quota will be issued on a first-come-come-first-served basis until fully utilized. Once the quota limit has been reached, GAC shipment-specific permits will no longer be available until the next quota period.
Surtax: A 50% surtax applies to imports without a shipment-specific permit from (GAC) from non-FTA countries.
Quota Periods: Administered in three-month intervals, with unused amounts rolled forward.
Country Share Caps: Each country faces a maximum share limit of the quarterly quota per category.
| Category | Quarterly Quota (tonnes) | Max % Per Country |
| Flat | 186,856 | 36% |
| Long | 178,512 | 28% |
| Pipe and Tube | 117,406 | 47% |
| Semi-finished | 152,383 | 72% |
| Stainless | 5,568 | 91% |
Permit Requirement: Importers and/or customs brokers must obtain shipment-specific permits from Global Affairs Canada. This will be subject to permits and service fees. Imports without a permit will be subject to the surtax, in addition to any existing duties.
Ongoing Review: Quotas will be reviewed after 30 days and periodically thereafter, guided by an industry-government steel task force.
Countries Excluded from TRQs
Steel imports from the following FTA partner countries are exempt from the new TRQ regime:
Australia, Austria, Belgium, Brunei Darussalam, Bulgaria, Canada, Chile, Colombia, Costa Rica, Croatia, Cyprus, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Honduras, Hungary, Iceland, Ireland, Israel, Italy, Japan, Jordan, South Korea, Latvia, Liechtenstein, Lithuania, Luxembourg, Malaysia, Malta, Mexico, Netherlands, New Zealand, Norway, Panama, Peru, Poland, Portugal, Romania, Singapore, Slovakia, Slovenia, Spain, Sweden, Switzerland, Ukraine, United Kingdom, United States, Vietnam
Takeaways for Importers
– Review your supply chains and identify exposure to non-FTA countries.
– Plan for potential surtax costs if sourcing from affected origins.
– Apply early for import permits to avoid delays or unexpected duties.
If you need assistance navigating these changes, including permit applications or country-of-origin compliance, our consulting team is here to help. Contact our team here.
Sincerely,
Summit Customs Brokers