Government Implements New Measures to Protect Canada’s Steel Industry
December 12, 2025 – Department of Finance Canada
Background
- New government plan launched to protect Canadian industries most affected by U.S. trade tariffs in an uncertain global environment
- Immediate relief measures announced by Finance Minister François-Philippe Champagne on November 26 to support struggling manufacturers
- Focus on adaptation strategies to help Canadian industries adjust to the changing international trade landscape
- Long-term clarity provided through comprehensive measures designed to strengthen affected sectors
- Government taking control of manageable factors while navigating rapidly changing global trade conditions
- Targeted support specifically aimed at Canadian manufacturers facing tariff-related challenges
- Strategic approach combines both short-term relief and sustainable long-term solutions for industry resilience
Canadian Tariff Relief Extension Summary
Tariff relief measures have been extended across multiple sectors to support Canadian manufacturing and essential services through 2026
- Steel goods used for manufacturing, processing, food packaging, and agricultural production receive tariff remission until January 31, 2026 – excluding motor vehicle and aerospace manufacturing, which extends to June 30, 2026
- Aluminum goods for manufacturing, processing, food and beverage packaging, and agricultural production benefit from extended relief through June 30, 2026
- Public health, healthcare, safety, and national security goods receive the longest extension period, with tariff relief continuing until June 30, 2026
Key Tariff Measures
25% global tariff will be imposed on imported steel-derivative products starting December 26, 2025.
For the Government’s complete published list of steel products that will be subject to these new tariffs, please follow the link below:
List of steel derivative products subject to 25 per cent tariffs effective December 26, 2025
Relief Measures for Businesses
Tariff rate quotas significantly reduced effective December 26, 2025:
- 20% of 2024 levels for non-free trade agreement partners
- 75% of 2024 levels for non-CUSMA free trade agreement partners
Canada’s Steel and Aluminum Tariff Policy Summary
Canada has implemented a non-stackable tariff system for steel and aluminum imports, meaning only one tariff measure can apply to any single product at a time.
Tariff Priority Order:
- First Priority: Tariffs on steel imports that exceed established quotas for non-CUSMA countries
- Second Priority (one of the following applies):
- Tariffs on U.S. steel and aluminum products
- Tariffs on Chinese steel and aluminum products
- Tariffs on non-U.S. imports containing steel melted/poured or aluminum smelted/cast in China
- Third Priority: Tariffs on steel derivative products from all countries (effective December 26, 2025)
Associated Links
Notice to importers: Item 82 – Steel goods – Serial No. 1160
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