Canada Imposes 25% Surtax on Steel Derivative Products

Canada has published the official Department of Finance list of “steel derivative” products that will be subject to a 25% surtax, effective December 26, 2025.
 

• The surtax applies to the full value of listed steel-derivative items with the scope defined by the tariff item, not the description.
• The tariff will not apply to goods already covered under other surtax orders, certain Chapter 98 items, specific temporary allowances for automotive/aerospace uses until July 1, 2026, wind towers of 7308.20.00 located west of the Ontario–Manitoba border, and goods in transit to Canada on on the day on which tariffs come into force.
• Remission requests may be considered on a case-by-case basis where domestic sourcing isn’t feasible or where the impacts could be severe, with administration guidance to follow via CBSA Customs Notices.

Canada maintains a non-stackable policy for its tariffs on steel and aluminum. Only one of these measures can apply to a particular good, following this order of precedence:

1. Tariffs on steel imports over the established tariff rate quotas for non-USMCA countries
2. Either: a) tariffs on U.S. steel and aluminum products; b) tariffs on Chinese steel and aluminum products; or c) tariffs on non-U.S. imports that contain steel melted and poured, or aluminum smelt and cast, in China.
3. Tariffs on steel derivative products from all countries (effective December 26, 2025)

For guidance on how to navigate these changes, contact Crane Worldwide today.