Order Amending the Order Imposing a Surtax on the Importation of Certain Steel Goods: SOR/2025-155

Canada Gazette, Part II, Volume 159, Number 17

Registration
SOR/2025-155 July 30, 2025

CUSTOMS TARIFF

P.C. 2025-593 July 30, 2025

Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance and the Minister of Foreign Affairs, makes the annexed Order Amending the Order Imposing a Surtax on the Importation of Certain Steel Goods under subsection 53(2)footnote a and section 79footnote b of the Customs Tariff footnote c.

Order Amending the Order Imposing a Surtax on the Importation of Certain Steel Goods

Amendments

1 (1) The portion of subsection 2(1) of the Order Imposing a Surtax on the Importation of Certain Steel Goods footnote 1 before paragraph (a) is replaced by the following:

Surtax — countries with no trade agreement

2 (1) Subject to section 3, goods that are classified under a tariff item set out in column 4 of Schedule 1 and do not originate in a country listed in Schedule 3, as well as those that are otherwise classifiable under one of those tariff items but are classified under a tariff item of Chapter 99 of the List of Tariff Provisions, are subject to a surtax in the amount of 50% of their value for duty determined in accordance with sections 47 to 55 of the Customs Act if

(2) Section 2 of the Order is amended by adding the following after subsection (1):

Transitional measures

(1.1) For the period beginning on August 1, 2025 and ending on September 25, 2025, the surtax referred to in subsection (1) applies if

(3) Subsection 2(3) of the Order is repealed.

2 The Order is amended by adding the following after section 2:

Surtax — countries with trade agreement

2.1 (1) Subject to section 3, goods that are classified under a tariff item set out in column 4 of Schedule 2 and originate in a country listed in Schedule 3, as well as those that are otherwise classifiable under one of those tariff items but are classified under a tariff item of Chapter 99 of the List of Tariff Provisions, are subject to a surtax in the amount of 50% of their value for duty determined in accordance with sections 47 to 55 of the Customs Act if

Transitional measures

(2) For the period beginning on August 1, 2025 and ending on September 25, 2025, the surtax referred to in subsection (1) applies if

Quarterly period

(3) For the purposes of subsection (1), a quarterly period is a three-month period, the first of which begins on September 26, 2025.

Import permit

(4) Goods are considered to be imported in excess of the limits set out in subsection (1) if they are not imported under a permit that is issued under subsection 8(1) of the Export and Import Permits Act in respect of steel goods referred to in item 82 of the Import Control List and that is valid at the time at which the goods are accounted for under subsection 32(1), (3) or (5) of the Customs Act.

3 (1) Paragraphs 3(a) and (b) of the Order are replaced by the following:

(2) Paragraph 3(d) of the Order is replaced by the following:

4 The Order is amended by adding the following after section 3:

Other surtaxes

3.1 Despite any other order made under the Customs Tariff, if a good that is subject to a surtax under this Order is also subject to any other surtax under the Customs Tariff, only the surtax under this Order is applicable to the good.

5 Schedules 1 and 2 to the Order are replaced by the Schedules 1, 2 and 3 set out in the schedule to this Order.

Coming into Force

6 This Order comes into force on August 1, 2025.

SCHEDULE

(Section 5)

SCHEDULE 1

(Subsections 2(1) and (1.1) and paragraph 3(d))

Importation Quotas — Countries with No Trade Agreement
Item

Column 1

Class of Goods

Column 2

Quarterly Total (tonnes)

Column 3

Percentage per Country

Column 4

Tariff Item

1 Carbon Steel Ingots 14 97%
  • 7206.10.00.00
  • 7206.90.00.00
  • 7224.10.00.00
2 Steel Billets and Blooms 76,181 70%
  • 7207.11.00.10
  • 7207.11.00.21
  • 7207.11.00.29
  • 7207.12.00.00
  • 7207.19.00.10
  • 7207.19.00.90
  • 7207.20.00.10
  • 7207.20.00.20
  • 7207.20.00.30
  • 7207.20.00.90
  • 7224.90.00.00
3 Hot-Rolled Sheet 5,926 41%
  • 7208.10.00.00
  • 7208.25.00.00
  • 7208.26.00.00
  • 7208.27.00.00
  • 7208.36.00.00
  • 7208.37.00.10
  • 7208.37.00.20
  • 7208.37.00.50
  • 7208.38.00.10
  • 7208.38.00.20
  • 7208.38.00.50
  • 7208.39.00.00
  • 7208.53.00.00
  • 7208.54.00.00
  • 7208.90.00.00
  • 7211.14.00.90
  • 7211.19.00.10
  • 7211.19.00.90
  • 7211.90.00.00
  • 7225.50.00.10
  • 7225.50.00.20
  • 7225.50.00.30
  • 7225.50.00.40
4 Floor Plate 6 98%
  • 7208.40.00.00
5 Steel Plate 13,003 36%
  • 7208.51.00.11
  • 7208.51.00.12
  • 7208.51.00.19
  • 7208.51.00.21
  • 7208.51.00.22
  • 7208.51.00.23
  • 7208.51.00.24
  • 7208.51.00.25
  • 7208.51.00.31
  • 7208.51.00.32
  • 7208.51.00.33
  • 7208.51.00.34
  • 7208.51.00.35
  • 7208.51.00.41
  • 7208.51.00.42
  • 7208.51.00.43
  • 7208.51.00.44
  • 7208.51.00.45
  • 7208.51.00.51
  • 7208.51.00.52
  • 7208.51.00.53
  • 7208.51.00.54
  • 7208.51.00.55
  • 7208.51.00.61
  • 7208.51.00.62
  • 7208.51.00.63
  • 7208.51.00.64
  • 7208.51.00.65
  • 7208.51.00.71
  • 7208.51.00.72
  • 7208.51.00.73
  • 7208.51.00.74
  • 7208.51.00.75
  • 7208.52.00.11
  • 7208.52.00.12
  • 7208.52.00.19
  • 7208.52.00.81
  • 7208.52.00.82
  • 7208.52.00.83
  • 7208.52.00.84
  • 7208.52.00.85
  • 7211.14.00.10
  • 7225.40.00.10
  • 7225.40.00.20
  • 7225.40.00.30
  • 7225.40.00.40
  • 7225.40.00.50
  • 7225.99.00.20
  • 7225.99.00.90
  • 7226.91.00.00
6 Cold-Rolled Sheet 15,411 92%
  • 7209.15.00.00
  • 7209.16.00.40
  • 7209.16.00.90
  • 7209.17.00.40
  • 7209.17.00.90
  • 7209.18.00.00
  • 7209.25.00.00
  • 7209.26.00.00
  • 7209.27.00.00
  • 7209.28.00.00
  • 7209.90.00.00
  • 7211.23.00.00
  • 7211.29.00.00
  • 7226.92.00.00
7 Tin 957 84%
  • 7210.11.00.00
  • 7210.12.00.00
  • 7210.50.00.00
  • 7212.10.00.00
8 Coated Steel Sheet 46,832 37%
  • 7210.30.00.00
  • 7210.41.00.00
  • 7210.49.00.40
  • 7210.49.00.50
  • 7210.49.00.60
  • 7210.49.00.70
  • 7210.90.00.00
  • 7212.20.00.10
  • 7212.20.00.20
  • 7212.20.00.30
  • 7212.20.00.40
  • 7212.30.00.10
  • 7212.30.00.20
  • 7212.30.00.30
  • 7212.30.00.40
  • 7225.30.00.00
  • 7225.91.00.10
  • 7225.91.00.20
  • 7225.91.00.30
  • 7225.91.00.40
  • 7225.92.00.10
  • 7225.92.00.20
  • 7225.92.00.30
  • 7225.92.00.40
  • 7226.99.00.11
  • 7226.99.00.12
  • 7226.99.00.13
  • 7226.99.00.19
  • 7226.99.00.91
  • 7226.99.00.92
  • 7226.99.00.93
  • 7226.99.00.99
9 Pre-Painted 8,665 58%
  • 7210.70.00.10
  • 7210.70.00.21
  • 7210.70.00.29
  • 7210.70.00.90
  • 7212.40.00.10
  • 7212.40.00.21
  • 7212.40.00.29
  • 7212.40.00.90
10 Rebar 33,613 29%
  • 7213.10.00.11
  • 7213.10.00.12
  • 7213.10.00.13
  • 7213.10.00.90
  • 7214.20.00.11
  • 7214.20.00.12
  • 7214.20.00.13
  • 7214.20.00.14
  • 7214.20.00.21
  • 7214.20.00.22
  • 7214.20.00.23
  • 7214.20.00.24
  • 7214.20.00.31
  • 7214.20.00.32
  • 7214.20.00.33
  • 7214.20.00.34
  • 7214.20.00.90
  • 7227.90.00.50
  • 7228.30.00.51
  • 7228.30.00.52
  • 7228.30.00.53
11 Hot-Rolled Bar 18,204 39%
  • 7213.20.00.50
  • 7213.20.00.90
  • 7214.10.00.00
  • 7214.30.00.24
  • 7214.30.00.25
  • 7214.30.00.33
  • 7214.30.00.34
  • 7214.30.00.40
  • 7214.30.00.90
  • 7214.91.00.11
  • 7214.91.00.12
  • 7214.91.00.13
  • 7214.91.00.21
  • 7214.91.00.22
  • 7214.91.00.23
  • 7214.91.00.31
  • 7214.91.00.32
  • 7214.91.00.33
  • 7214.99.00.20
  • 7214.99.00.30
  • 7214.99.00.41
  • 7214.99.00.42
  • 7214.99.00.43
  • 7214.99.00.49
  • 7214.99.00.51
  • 7214.99.00.52
  • 7214.99.00.53
  • 7214.99.00.59
  • 7214.99.00.60
  • 7228.20.00.50
  • 7228.30.00.49
  • 7228.30.00.71
  • 7228.30.00.72
  • 7228.30.00.73
  • 7228.30.00.81
  • 7228.30.00.90
  • 7228.40.00.10
  • 7228.40.00.20
  • 7228.40.00.90
  • 7228.60.00.00
  • 7228.80.00.19
  • 7228.80.00.92
  • 7302.10.00.21
  • 7302.90.00.00
12 Wire Rod 3,929 45%
  • 7213.91.00.41
  • 7213.91.00.42
  • 7213.91.00.43
  • 7213.91.00.49
  • 7213.91.00.50
  • 7213.91.00.60
  • 7213.91.00.70
  • 7213.99.00.11
  • 7213.99.00.12
  • 7213.99.00.13
  • 7213.99.00.31
  • 7213.99.00.32
  • 7213.99.00.33
  • 7213.99.00.51
  • 7213.99.00.52
  • 7213.99.00.53
  • 7213.99.00.90
  • 7227.10.00.00
  • 7227.20.00.20
  • 7227.20.00.90
  • 7227.90.00.11
  • 7227.90.00.19
  • 7227.90.00.21
  • 7227.90.00.29
  • 7227.90.00.60
  • 7227.90.00.70
  • 7227.90.00.81
  • 7227.90.00.82
  • 7227.90.00.83
  • 7227.90.00.90
13 Cold Finished Bars 536 54%
  • 7215.10.00.20
  • 7215.10.00.90
  • 7215.50.00.10
  • 7215.50.00.21
  • 7215.50.00.29
  • 7215.50.00.90
  • 7228.50.00.10
  • 7228.50.00.20
  • 7228.50.00.90
14 Structural Steel 11,711 54%
  • 7216.10.00.11
  • 7216.10.00.19
  • 7216.10.00.21
  • 7216.10.00.29
  • 7216.21.00.10
  • 7216.21.00.20
  • 7216.22.00.00
  • 7216.31.00.11
  • 7216.31.00.12
  • 7216.31.00.19
  • 7216.31.00.21
  • 7216.31.00.22
  • 7216.31.00.29
  • 7216.40.00.11
  • 7216.40.00.12
  • 7216.40.00.21
  • 7216.40.00.22
  • 7216.40.00.30
  • 7216.50.00.10
  • 7216.50.00.20
  • 7216.50.00.30
  • 7216.50.00.90
  • 7216.61.00.00
  • 7216.69.00.00
  • 7216.91.00.10
  • 7216.99.00.10
  • 7216.99.00.20
  • 7216.99.00.30
  • 7216.99.00.99
  • 7228.70.00.11
  • 7228.70.00.12
  • 7228.70.00.50
  • 7228.70.00.82
  • 7228.70.00.83
  • 7228.70.00.89
  • 7228.70.00.91
  • 7228.70.00.93
  • 7228.70.00.99
15 Steel Wire 10,286 70%
  • 7217.10.00.41
  • 7217.10.00.42
  • 7217.10.00.43
  • 7217.10.00.44
  • 7217.10.00.45
  • 7217.10.00.51
  • 7217.10.00.52
  • 7217.10.00.53
  • 7217.10.00.54
  • 7217.10.00.55
  • 7217.10.00.59
  • 7217.10.00.61
  • 7217.10.00.62
  • 7217.10.00.63
  • 7217.10.00.64
  • 7217.10.00.65
  • 7217.10.00.66
  • 7217.10.00.67
  • 7217.10.00.68
  • 7217.10.00.71
  • 7217.10.00.79
  • 7217.10.00.81
  • 7217.10.00.82
  • 7217.10.00.83
  • 7217.10.00.84
  • 7217.10.00.85
  • 7217.10.00.86
  • 7217.10.00.87
  • 7217.10.00.88
  • 7217.10.00.91
  • 7217.10.00.99
  • 7217.20.00.10
  • 7217.20.00.41
  • 7217.20.00.42
  • 7217.20.00.43
  • 7217.20.00.44
  • 7217.20.00.49
  • 7217.20.00.51
  • 7217.20.00.52
  • 7217.20.00.53
  • 7217.20.00.54
  • 7217.20.00.59
  • 7217.20.00.61
  • 7217.20.00.62
  • 7217.20.00.63
  • 7217.20.00.64
  • 7217.20.00.69
  • 7217.20.00.71
  • 7217.20.00.72
  • 7217.20.00.73
  • 7217.20.00.74
  • 7217.20.00.79
  • 7217.20.00.81
  • 7217.20.00.82
  • 7217.20.00.83
  • 7217.20.00.84
  • 7217.20.00.89
  • 7217.20.00.91
  • 7217.20.00.92
  • 7217.20.00.93
  • 7217.20.00.94
  • 7217.20.00.99
  • 7217.30.00.10
  • 7217.30.00.21
  • 7217.30.00.22
  • 7217.30.00.23
  • 7217.30.00.24
  • 7217.30.00.29
  • 7217.30.00.31
  • 7217.30.00.32
  • 7217.30.00.33
  • 7217.30.00.34
  • 7217.30.00.39
  • 7217.30.00.41
  • 7217.30.00.42
  • 7217.30.00.43
  • 7217.30.00.44
  • 7217.30.00.49
  • 7217.90.00.20
  • 7217.90.00.91
  • 7217.90.00.92
  • 7217.90.00.93
  • 7229.20.00.11
  • 7229.20.00.19
  • 7229.20.00.90
  • 7229.90.00.30
  • 7229.90.00.40
  • 7229.90.00.51
  • 7229.90.00.59
  • 7229.90.00.61
  • 7229.90.00.62
  • 7229.90.00.63
  • 7229.90.00.64
  • 7229.90.00.71
  • 7229.90.00.72
  • 7229.90.00.73
  • 7229.90.00.74
  • 7229.90.00.90
16 Stainless Steel Ingots 0.25 75%
  • 7218.10.00.00
17 Stainless Steel Billets and Blooms 2,232 99%
  • 7218.91.00.00
  • 7218.99.00.10
  • 7218.99.00.90
18 Line Pipe 5,433 61%
  • 7304.19.00.23
  • 7304.19.00.24
  • 7304.19.00.25
  • 7304.19.00.26
  • 7304.19.00.29
  • 7304.19.00.61
  • 7304.19.00.62
  • 7304.19.00.63
  • 7304.19.00.64
  • 7304.19.00.69
  • 7304.19.00.71
  • 7304.19.00.72
  • 7304.19.00.73
  • 7304.19.00.74
  • 7304.19.00.79
  • 7304.19.00.81
  • 7304.19.00.82
  • 7304.19.00.83
  • 7304.19.00.84
  • 7304.19.00.89
  • 7304.39.00.21
  • 7304.39.00.22
  • 7304.39.00.31
  • 7304.39.00.32
  • 7306.11.00.00
19 Oil Country Tubular Goods 7,816 53%
  • 7304.29.00.12
  • 7304.29.00.13
  • 7304.29.00.14
  • 7304.29.00.15
  • 7304.29.00.16
  • 7304.29.00.17
  • 7304.29.00.19
  • 7304.29.00.22
  • 7304.29.00.23
  • 7304.29.00.24
  • 7304.29.00.25
  • 7304.29.00.26
  • 7304.29.00.27
  • 7304.29.00.29
  • 7304.29.00.32
  • 7304.29.00.33
  • 7304.29.00.34
  • 7304.29.00.35
  • 7304.29.00.36
  • 7304.29.00.37
  • 7305.20.00.00
  • 7306.21.00.00
  • 7306.29.00.12
  • 7306.29.00.13
  • 7306.29.00.14
  • 7306.29.00.15
  • 7306.29.00.16
  • 7306.29.00.17
  • 7306.29.00.19
  • 7306.29.00.22
  • 7306.29.00.23
  • 7306.29.00.24
  • 7306.29.00.25
  • 7306.29.00.26
  • 7306.29.00.27
  • 7306.29.00.29
  • 7306.29.00.32
  • 7306.29.00.33
  • 7306.29.00.34
  • 7306.29.00.35
  • 7306.29.00.36
  • 7306.29.00.37
  • 7306.29.00.39
  • 7306.29.00.42
  • 7306.29.00.43
  • 7306.29.00.44
  • 7306.29.00.45
  • 7306.29.00.46
  • 7306.29.00.47
  • 7306.29.00.49
  • 7306.29.00.52
  • 7306.29.00.53
  • 7306.29.00.54
  • 7306.29.00.55
  • 7306.29.00.56
  • 7306.29.00.57
  • 7306.29.00.59
  • 7306.29.00.62
  • 7306.29.00.63
  • 7306.29.00.64
  • 7306.29.00.65
  • 7306.29.00.66
  • 7306.29.00.67
  • 7306.29.00.69
  • 7306.29.00.72
  • 7306.29.00.73
  • 7306.29.00.74
  • 7306.29.00.75
  • 7306.29.00.76
  • 7306.29.00.77
  • 7306.29.00.79
20 Standard Pipe 23,906 22%
  • 7306.30.00.41
  • 7306.30.00.42
  • 7306.30.00.43
  • 7306.30.00.44
  • 7306.30.00.45
  • 7306.30.00.46
  • 7306.30.00.47
  • 7306.30.00.49
  • 7306.30.00.51
  • 7306.30.00.52
  • 7306.30.00.53
  • 7306.30.00.54
  • 7306.30.00.55
  • 7306.30.00.56
  • 7306.30.00.57
  • 7306.30.00.59
  • 7306.30.00.61
  • 7306.30.00.62
  • 7306.30.00.63
  • 7306.30.00.64
  • 7306.30.00.65
  • 7306.30.00.66
  • 7306.30.00.67
  • 7306.30.00.69
  • 7306.30.00.71
  • 7306.30.00.72
  • 7306.30.00.73
  • 7306.30.00.74
  • 7306.30.00.75
  • 7306.30.00.76
  • 7306.30.00.77
  • 7306.30.00.79
  • 7306.30.00.81
  • 7306.30.00.82
  • 7306.30.00.83
  • 7306.30.00.84
  • 7306.30.00.85
  • 7306.30.00.86
  • 7306.30.00.87
  • 7306.30.00.89
  • 7306.40.00.10
  • 7306.40.00.20
  • 7306.40.00.30
  • 7306.90.00.10
  • 7306.90.00.20
21 Large Diameter Line Pipe 5,086 51%
  • 7305.11.00.31
  • 7305.11.00.32
  • 7305.11.00.33
  • 7305.11.00.34
  • 7305.11.00.39
  • 7305.11.00.41
  • 7305.11.00.42
  • 7305.11.00.43
  • 7305.11.00.44
  • 7305.11.00.49
  • 7305.12.00.31
  • 7305.12.00.32
  • 7305.12.00.33
  • 7305.12.00.34
  • 7305.12.00.39
  • 7305.12.00.41
  • 7305.12.00.42
  • 7305.12.00.43
  • 7305.12.00.44
  • 7305.12.00.49
  • 7305.19.00.31
  • 7305.19.00.32
  • 7305.19.00.33
  • 7305.19.00.34
  • 7305.19.00.39
  • 7305.19.00.41
  • 7305.19.00.42
  • 7305.19.00.43
  • 7305.19.00.44
  • 7305.19.00.49
  • 7305.31.00.11
  • 7305.31.00.19
  • 7305.31.00.20
  • 7306.19.00.10
  • 7306.19.00.90
22 Piling Pipe 6,724 92%
  • 7305.39.00.20
  • 7305.39.00.30
23 Hollow Structural Sections 5,996 40%
  • 7306.50.00.00
  • 7306.61.00.31
  • 7306.61.00.39
  • 7306.61.00.41
  • 7306.61.00.49
  • 7306.69.00.31
  • 7306.69.00.39
  • 7306.69.00.41
  • 7306.69.00.49

SCHEDULE 2

(Subsections 2.1(1) and (2) and paragraph 3(d))

Importation Quotas — Countries with Trade Agreement
Item

Column 1

Class of Goods

Column 2

Quarterly Total
(tonnes)

Column 2.1

Total for August 1 to September 25, 2025 (tonnes)

Column 3

Percentage per Country

Column 4

Tariff Item

1 Carbon Steel Ingots 123 76 77%
  • 7206.10.00.00
  • 7206.90.00.00
  • 7224.10.00.00
2 Steel Billets and Blooms 23,533 14,482 40%
  • 7207.11.00.10
  • 7207.11.00.21
  • 7207.11.00.29
  • 7207.12.00.00
  • 7207.19.00.10
  • 7207.19.00.90
  • 7207.20.00.10
  • 7207.20.00.20
  • 7207.20.00.30
  • 7207.20.00.90
  • 7224.90.00.00
3 Hot-Rolled Sheet 12,698 7,814 67%
  • 7208.10.00.00
  • 7208.25.00.00
  • 7208.26.00.00
  • 7208.27.00.00
  • 7208.36.00.00
  • 7208.37.00.10
  • 7208.37.00.20
  • 7208.37.00.50
  • 7208.38.00.10
  • 7208.38.00.20
  • 7208.38.00.50
  • 7208.39.00.00
  • 7208.53.00.00
  • 7208.54.00.00
  • 7208.90.00.00
  • 7211.14.00.90
  • 7211.19.00.10
  • 7211.19.00.90
  • 7211.90.00.00
  • 7225.50.00.10
  • 7225.50.00.20
  • 7225.50.00.30
  • 7225.50.00.40
4 Floor Plate 45 27 66%
  • 7208.40.00.00
5 Steel Plate 72,473 44,599 30%
  • 7208.51.00.11
  • 7208.51.00.12
  • 7208.51.00.19
  • 7208.51.00.21
  • 7208.51.00.22
  • 7208.51.00.23
  • 7208.51.00.24
  • 7208.51.00.25
  • 7208.51.00.31
  • 7208.51.00.32
  • 7208.51.00.33
  • 7208.51.00.34
  • 7208.51.00.35
  • 7208.51.00.41
  • 7208.51.00.42
  • 7208.51.00.43
  • 7208.51.00.44
  • 7208.51.00.45
  • 7208.51.00.51
  • 7208.51.00.52
  • 7208.51.00.53
  • 7208.51.00.54
  • 7208.51.00.55
  • 7208.51.00.61
  • 7208.51.00.62
  • 7208.51.00.63
  • 7208.51.00.64
  • 7208.51.00.65
  • 7208.51.00.71
  • 7208.51.00.72
  • 7208.51.00.73
  • 7208.51.00.74
  • 7208.51.00.75
  • 7208.52.00.11
  • 7208.52.00.12
  • 7208.52.00.19
  • 7208.52.00.81
  • 7208.52.00.82
  • 7208.52.00.83
  • 7208.52.00.84
  • 7208.52.00.85
  • 7211.14.00.10
  • 7225.40.00.10
  • 7225.40.00.20
  • 7225.40.00.30
  • 7225.40.00.40
  • 7225.40.00.50
  • 7225.99.00.20
  • 7225.99.00.90
  • 7226.91.00.00
6 Cold-Rolled Sheet 2,444 1,504 32%
  • 7209.15.00.00
  • 7209.16.00.40
  • 7209.16.00.90
  • 7209.17.00.40
  • 7209.17.00.90
  • 7209.18.00.00
  • 7209.25.00.00
  • 7209.26.00.00
  • 7209.27.00.00
  • 7209.28.00.00
  • 7209.90.00.00
  • 7211.23.00.00
  • 7211.29.00.00
  • 7226.92.00.00
7 Tin 2,875 1,769 56%
  • 7210.11.00.00
  • 7210.12.00.00
  • 7210.50.00.00
  • 7212.10.00.00
8 Coated 41,504 25,541 25%
  • 7210.30.00.00
  • 7210.41.00.00
  • 7210.49.00.40
  • 7210.49.00.50
  • 7210.49.00.60
  • 7210.49.00.70
  • 7210.90.00.00
  • 7212.20.00.10
  • 7212.20.00.20
  • 7212.20.00.30
  • 7212.20.00.40
  • 7212.30.00.10
  • 7212.30.00.20
  • 7212.30.00.30
  • 7212.30.00.40
  • 7225.30.00.00
  • 7225.91.00.10
  • 7225.91.00.20
  • 7225.91.00.30
  • 7225.91.00.40
  • 7225.92.00.10
  • 7225.92.00.20
  • 7225.92.00.30
  • 7225.92.00.40
  • 7226.99.00.11
  • 7226.99.00.12
  • 7226.99.00.13
  • 7226.99.00.19
  • 7226.99.00.91
  • 7226.99.00.92
  • 7226.99.00.93
  • 7226.99.00.99
9 Pre-Painted 31,685 19,498 90%
  • 7210.70.00.10
  • 7210.70.00.21
  • 7210.70.00.29
  • 7210.70.00.90
  • 7212.40.00.10
  • 7212.40.00.21
  • 7212.40.00.29
  • 7212.40.00.90
10 Rebar 38,281 23,557 45%
  • 7213.10.00.11
  • 7213.10.00.12
  • 7213.10.00.13
  • 7213.10.00.90
  • 7214.20.00.11
  • 7214.20.00.12
  • 7214.20.00.13
  • 7214.20.00.14
  • 7214.20.00.21
  • 7214.20.00.22
  • 7214.20.00.23
  • 7214.20.00.24
  • 7214.20.00.31
  • 7214.20.00.32
  • 7214.20.00.33
  • 7214.20.00.34
  • 7214.20.00.90
  • 7227.90.00.50
  • 7228.30.00.51
  • 7228.30.00.52
  • 7228.30.00.53
11 Hot-Rolled Bar 11,667 7,180 58%
  • 7213.20.00.50
  • 7213.20.00.90
  • 7214.10.00.00
  • 7214.30.00.24
  • 7214.30.00.25
  • 7214.30.00.33
  • 7214.30.00.34
  • 7214.30.00.40
  • 7214.30.00.90
  • 7214.91.00.11
  • 7214.91.00.12
  • 7214.91.00.13
  • 7214.91.00.21
  • 7214.91.00.22
  • 7214.91.00.23
  • 7214.91.00.31
  • 7214.91.00.32
  • 7214.91.00.33
  • 7214.99.00.20
  • 7214.99.00.30
  • 7214.99.00.41
  • 7214.99.00.42
  • 7214.99.00.43
  • 7214.99.00.49
  • 7214.99.00.51
  • 7214.99.00.52
  • 7214.99.00.53
  • 7214.99.00.59
  • 7214.99.00.60
  • 7228.20.00.50
  • 7228.30.00.49
  • 7228.30.00.71
  • 7228.30.00.72
  • 7228.30.00.73
  • 7228.30.00.81
  • 7228.30.00.90
  • 7228.40.00.10
  • 7228.40.00.20
  • 7228.40.00.90
  • 7228.60.00.00
  • 7228.80.00.19
  • 7228.80.00.92
  • 7302.10.00.21
  • 7302.90.00.00
12 Wire rod 22,020 13,551 59%
  • 7213.91.00.41
  • 7213.91.00.42
  • 7213.91.00.43
  • 7213.91.00.49
  • 7213.91.00.50
  • 7213.91.00.60
  • 7213.91.00.70
  • 7213.99.00.11
  • 7213.99.00.12
  • 7213.99.00.13
  • 7213.99.00.31
  • 7213.99.00.32
  • 7213.99.00.33
  • 7213.99.00.51
  • 7213.99.00.52
  • 7213.99.00.53
  • 7213.99.00.90
  • 7227.10.00.00
  • 7227.20.00.20
  • 7227.20.00.90
  • 7227.90.00.11
  • 7227.90.00.19
  • 7227.90.00.21
  • 7227.90.00.29
  • 7227.90.00.60
  • 7227.90.00.70
  • 7227.90.00.81
  • 7227.90.00.82
  • 7227.90.00.83
  • 7227.90.00.90
13 Cold Finished Bars 8,746 5,382 39%
  • 7215.10.00.20
  • 7215.10.00.90
  • 7215.50.00.10
  • 7215.50.00.21
  • 7215.50.00.29
  • 7215.50.00.90
  • 7228.50.00.10
  • 7228.50.00.20
  • 7228.50.00.90
14 Structural Steel 4,624 2,846 69%
  • 7216.10.00.11
  • 7216.10.00.19
  • 7216.10.00.21
  • 7216.10.00.29
  • 7216.21.00.10
  • 7216.21.00.20
  • 7216.22.00.00
  • 7216.31.00.11
  • 7216.31.00.12
  • 7216.31.00.19
  • 7216.31.00.21
  • 7216.31.00.22
  • 7216.31.00.29
  • 7216.40.00.11
  • 7216.40.00.12
  • 7216.40.00.21
  • 7216.40.00.22
  • 7216.40.00.30
  • 7216.50.00.10
  • 7216.50.00.20
  • 7216.50.00.30
  • 7216.50.00.90
  • 7216.61.00.00
  • 7216.69.00.00
  • 7216.91.00.10
  • 7216.99.00.10
  • 7216.99.00.20
  • 7216.99.00.30
  • 7216.99.00.99
  • 7228.70.00.11
  • 7228.70.00.12
  • 7228.70.00.50
  • 7228.70.00.82
  • 7228.70.00.83
  • 7228.70.00.89
  • 7228.70.00.91
  • 7228.70.00.93
  • 7228.70.00.99
15 Steel Wire 9,827 6,047 24%
  • 7217.10.00.41
  • 7217.10.00.42
  • 7217.10.00.43
  • 7217.10.00.44
  • 7217.10.00.45
  • 7217.10.00.51
  • 7217.10.00.52
  • 7217.10.00.53
  • 7217.10.00.54
  • 7217.10.00.55
  • 7217.10.00.59
  • 7217.10.00.61
  • 7217.10.00.62
  • 7217.10.00.63
  • 7217.10.00.64
  • 7217.10.00.65
  • 7217.10.00.66
  • 7217.10.00.67
  • 7217.10.00.68
  • 7217.10.00.71
  • 7217.10.00.79
  • 7217.10.00.81
  • 7217.10.00.82
  • 7217.10.00.83
  • 7217.10.00.84
  • 7217.10.00.85
  • 7217.10.00.86
  • 7217.10.00.87
  • 7217.10.00.88
  • 7217.10.00.91
  • 7217.10.00.99
  • 7217.20.00.10
  • 7217.20.00.41
  • 7217.20.00.42
  • 7217.20.00.43
  • 7217.20.00.44
  • 7217.20.00.49
  • 7217.20.00.51
  • 7217.20.00.52
  • 7217.20.00.53
  • 7217.20.00.54
  • 7217.20.00.59
  • 7217.20.00.61
  • 7217.20.00.62
  • 7217.20.00.63
  • 7217.20.00.64
  • 7217.20.00.69
  • 7217.20.00.71
  • 7217.20.00.72
  • 7217.20.00.73
  • 7217.20.00.74
  • 7217.20.00.79
  • 7217.20.00.81
  • 7217.20.00.82
  • 7217.20.00.83
  • 7217.20.00.84
  • 7217.20.00.89
  • 7217.20.00.91
  • 7217.20.00.92
  • 7217.20.00.93
  • 7217.20.00.94
  • 7217.20.00.99
  • 7217.30.00.10
  • 7217.30.00.21
  • 7217.30.00.22
  • 7217.30.00.23
  • 7217.30.00.24
  • 7217.30.00.29
  • 7217.30.00.31
  • 7217.30.00.32
  • 7217.30.00.33
  • 7217.30.00.34
  • 7217.30.00.39
  • 7217.30.00.41
  • 7217.30.00.42
  • 7217.30.00.43
  • 7217.30.00.44
  • 7217.30.00.49
  • 7217.90.00.20
  • 7217.90.00.91
  • 7217.90.00.92
  • 7217.90.00.93
  • 7229.20.00.11
  • 7229.20.00.19
  • 7229.20.00.90
  • 7229.90.00.30
  • 7229.90.00.40
  • 7229.90.00.51
  • 7229.90.00.59
  • 7229.90.00.61
  • 7229.90.00.62
  • 7229.90.00.63
  • 7229.90.00.64
  • 7229.90.00.71
  • 7229.90.00.72
  • 7229.90.00.73
  • 7229.90.00.74
  • 7229.90.00.90
16 Stainless Steel Ingots 1.5 0.9 83%
  • 7218.10.00.00
17 Stainless Steel Billets and Blooms 8 5 57%
  • 7218.91.00.00
  • 7218.99.00.10
  • 7218.99.00.90
18 Line Pipe 2,999 1,845 27%
  • 7304.19.00.23
  • 7304.19.00.24
  • 7304.19.00.25
  • 7304.19.00.26
  • 7304.19.00.29
  • 7304.19.00.61
  • 7304.19.00.62
  • 7304.19.00.63
  • 7304.19.00.64
  • 7304.19.00.69
  • 7304.19.00.71
  • 7304.19.00.72
  • 7304.19.00.73
  • 7304.19.00.74
  • 7304.19.00.79
  • 7304.19.00.81
  • 7304.19.00.82
  • 7304.19.00.83
  • 7304.19.00.84
  • 7304.19.00.89
  • 7304.39.00.21
  • 7304.39.00.22
  • 7304.39.00.31
  • 7304.39.00.32
  • 7306.11.00.00
19 Oil Country Tubular Goods 13,068 8,042 86%
  • 7304.29.00.12
  • 7304.29.00.13
  • 7304.29.00.14
  • 7304.29.00.15
  • 7304.29.00.16
  • 7304.29.00.17
  • 7304.29.00.19
  • 7304.29.00.22
  • 7304.29.00.23
  • 7304.29.00.24
  • 7304.29.00.25
  • 7304.29.00.26
  • 7304.29.00.27
  • 7304.29.00.29
  • 7304.29.00.32
  • 7304.29.00.33
  • 7304.29.00.34
  • 7304.29.00.35
  • 7304.29.00.36
  • 7304.29.00.37
  • 7305.20.00.00
  • 7306.21.00.00
  • 7306.29.00.12
  • 7306.29.00.13
  • 7306.29.00.14
  • 7306.29.00.15
  • 7306.29.00.16
  • 7306.29.00.17
  • 7306.29.00.19
  • 7306.29.00.22
  • 7306.29.00.23
  • 7306.29.00.24
  • 7306.29.00.25
  • 7306.29.00.26
  • 7306.29.00.27
  • 7306.29.00.29
  • 7306.29.00.32
  • 7306.29.00.33
  • 7306.29.00.34
  • 7306.29.00.35
  • 7306.29.00.36
  • 7306.29.00.37
  • 7306.29.00.39
  • 7306.29.00.42
  • 7306.29.00.43
  • 7306.29.00.44
  • 7306.29.00.45
  • 7306.29.00.46
  • 7306.29.00.47
  • 7306.29.00.49
  • 7306.29.00.52
  • 7306.29.00.53
  • 7306.29.00.54
  • 7306.29.00.55
  • 7306.29.00.56
  • 7306.29.00.57
  • 7306.29.00.59
  • 7306.29.00.62
  • 7306.29.00.63
  • 7306.29.00.64
  • 7306.29.00.65
  • 7306.29.00.66
  • 7306.29.00.67
  • 7306.29.00.69
  • 7306.29.00.72
  • 7306.29.00.73
  • 7306.29.00.74
  • 7306.29.00.75
  • 7306.29.00.76
  • 7306.29.00.77
  • 7306.29.00.79
20 Standard Pipe 16,193 9,965 57%
  • 7306.30.00.41
  • 7306.30.00.42
  • 7306.30.00.43
  • 7306.30.00.44
  • 7306.30.00.45
  • 7306.30.00.46
  • 7306.30.00.47
  • 7306.30.00.49
  • 7306.30.00.51
  • 7306.30.00.52
  • 7306.30.00.53
  • 7306.30.00.54
  • 7306.30.00.55
  • 7306.30.00.56
  • 7306.30.00.57
  • 7306.30.00.59
  • 7306.30.00.61
  • 7306.30.00.62
  • 7306.30.00.63
  • 7306.30.00.64
  • 7306.30.00.65
  • 7306.30.00.66
  • 7306.30.00.67
  • 7306.30.00.69
  • 7306.30.00.71
  • 7306.30.00.72
  • 7306.30.00.73
  • 7306.30.00.74
  • 7306.30.00.75
  • 7306.30.00.76
  • 7306.30.00.77
  • 7306.30.00.79
  • 7306.30.00.81
  • 7306.30.00.82
  • 7306.30.00.83
  • 7306.30.00.84
  • 7306.30.00.85
  • 7306.30.00.86
  • 7306.30.00.87
  • 7306.30.00.89
  • 7306.40.00.10
  • 7306.40.00.20
  • 7306.40.00.30
  • 7306.90.00.10
  • 7306.90.00.20
21 Large Diameter Line Pipe 21,384 13,159 71%
  • 7305.11.00.31
  • 7305.11.00.32
  • 7305.11.00.33
  • 7305.11.00.34
  • 7305.11.00.39
  • 7305.11.00.41
  • 7305.11.00.42
  • 7305.11.00.43
  • 7305.11.00.44
  • 7305.11.00.49
  • 7305.12.00.31
  • 7305.12.00.32
  • 7305.12.00.33
  • 7305.12.00.34
  • 7305.12.00.39
  • 7305.12.00.41
  • 7305.12.00.42
  • 7305.12.00.43
  • 7305.12.00.44
  • 7305.12.00.49
  • 7305.19.00.31
  • 7305.19.00.32
  • 7305.19.00.33
  • 7305.19.00.34
  • 7305.19.00.39
  • 7305.19.00.41
  • 7305.19.00.42
  • 7305.19.00.43
  • 7305.19.00.44
  • 7305.19.00.49
  • 7305.31.00.11
  • 7305.31.00.19
  • 7305.31.00.20
  • 7306.19.00.10
  • 7306.19.00.90
22 Piling Pipe 1 0.6 77%
  • 7305.39.00.20
  • 7305.39.00.30
23 Hollow Structural Sections 3,703 2,278 41%
  • 7306.50.00.00
  • 7306.61.00.31
  • 7306.61.00.39
  • 7306.61.00.41
  • 7306.61.00.49
  • 7306.69.00.31
  • 7306.69.00.39
  • 7306.69.00.41
  • 7306.69.00.49

SCHEDULE 3

(Subsections 2(1) and 2.1(1))

List of Countries with Trade Agreement

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the orders.)

Issues

Due to restrictive trade measures taken by the United States (U.S.) through its imposition of tariffs under section 232 of the U.S. Trade Expansion Act of 1962 (section 232) on steel and aluminum imports, as well as the longstanding global excess capacity in steel supply caused by non-market practices of certain foreign governments, there is a significant risk of trade diversion of steel products into Canada, which threatens to adversely affect the Canadian steel industry.

As announced by the Prime Minister on July 16, 2025, based on a review of the tariff rate quotas (TRQs) for steel products implemented on June 27, 2025, and additional consultations with Canadian steel producers, the Government is taking further necessary actions to strengthen the TRQs. This will help to further ensure stability in the domestic steel market, and better address the risk of steel trade diversion from third countries into the Canadian market.

Background

On June 19, 2025, the Government of Canada announced the implementation of trade measures on imports of steel mill products from non-free trade agreement (FTA) partners. These measures came into force on June 27, 2025, in the form of TRQs under which a 50% surtax is applied to imports of covered steel products (flat, long, pipe and tube, semi-finished and stainless) that exceed a quota equivalent to 100% of 2024 volumes from non-FTA partners (see the Order Imposing a Surtax on the Importation of Certain Steel Goods; SOR/2025-148). These measures are intended to help stabilize the Canadian market and prevent harmful diversion of foreign steel from third countries into Canada while minimizing impacts on Canadian importers and downstream users.

Global Affairs Canada is responsible for administering the quota of products that may be imported without this additional surtax through the issuance of shipment-specific import permits. To facilitate the administration of the TRQs, the subject products were added to the Import Control List (ICL). Importations made without the applicable shipment-specific import permit are assessed the 50% surtax by the Canada Border Services Agency.

The Government committed to reviewing the implementation of the TRQs in 30 days to ensure their appropriateness and effectiveness in light of evolving market circumstances, and periodically thereafter. The reviews were to be supported by the newly established industry-government steel task force.

On July 16, 2025, the Prime Minister announced a suite of targeted measures to support the steel industry. This includes trade measures to address foreign steel imports entering the Canadian market through strengthening the TRQs for steel products implemented on June 27, 2025, by

In Canada, the requirements for imposing these trade measures are set out in the Customs Tariff. Specifically, the Customs Tariff allows the Governor in Council to impose trade measures on the recommendation of the Minister of Finance and the Minister of Foreign Affairs, in response to acts, policies or practices of a foreign government that adversely affect, or lead directly or indirectly to adverse effects on, trade in goods or services of Canada.

To facilitate those trade measures when they take the form of a TRQ, the Governor in Council is also authorized to add goods subject to those trade measures to the ICL, established under subsection 5(1) of the Export and Import Permits Act (EIPA). The purpose of the ICL is to list the goods which are subject to import controls in Canada for various trade-related and strategic reasons. Import permits and certificates are issued by Global Affairs Canada on behalf of the Minister of Foreign Affairs under the Act.

Objective

The Government is strengthening the TRQs for steel products implemented on June 27, 2025, to ensure that the TRQs continue to be effective in addressing the risk of steel diversion into the Canadian market in light of recent market conditions.

Description

The Order Amending the Order Imposing a Surtax on the Importation of Certain Steel Goods (Surtax Amending Order) amends the Order Imposing a Surtax on the Importation of Certain Steel Goods in the following manner:

To facilitate administration of the Surtax Amending Order, the Order Amending the Import Control List (2025-1) amends item 82 of the ICL to align with the list of steel goods subject to the Surtax Amending Order. Goods controlled under item 82 of the ICL will require a shipment-specific import permit to benefit from quotas upon entry into force of the Surtax Amending Order. Importers are able to apply for shipment-specific import permits that will allow these goods to be exempt from the 50% surtax. Import permits will not be issued once the quantities indicated in Schedules 1 and 2 to the Surtax Amending Order are reached. Goods may continue to be imported after that point, provided that the requirements of any other general import permits are met, but will be subject to the surtax.

Regulatory development

Consultation

On June 19, 2025, the Government announced the creation of a government-stakeholder Steel Trade Monitoring Task Force, which meets regularly to closely monitor trade and market trends to support government decision-making.

The Steel Trade Monitoring Task Force has since met on several occasions. In related discussions, Canadian steel producers have requested adjustments to the design of the original steel TRQ measure imposed on June 27 to better stabilize the domestic steel market and mitigate risks of disruptions caused by U.S. tariffs. This includes expanding the scope of country coverage, reducing overall quota volumes, and certain TRQ administrative and design changes.

These comments build on previous public consultations held by the Government of Canada from March 22 to April 21, 2025, on possible trade measures to protect against the threat of diversion of steel products from third countries into the Canadian market. Steel producers expressed support for protective trade measures, while downstream industries generally expressed concerns over supply of certain raw materials and cost impacts that may affect their competitiveness. Certain provincial governments and other submissions have raised regional issues, noting that trade measures risk limiting supply of steel goods leading to higher prices and project delays for provinces farther away from Canadian steel mills in central Canada, due to shipping costs for some products. All comments have been taken into consideration in determining the appropriate course of action.

The Government will continue to engage affected stakeholder groups as this amendment is implemented and review the measure on an ongoing basis to ensure it reflects developments in the market, ongoing trade discussions with other countries. Further adjustments, including potential extensions or termination, could be made when warranted.

Modern treaty obligations and Indigenous engagement and consultation

Following an assessment of modern treaty implications, no adverse impacts on potential or established Indigenous or treaty rights, which are recognized and affirmed in section 35 of the Constitution Act, 1982, were identified in the Surtax Amending Order.

Instrument choice

The Order Imposing a Surtax on the Importation of Certain Steel Goods was implemented under subsection 53(2) of the Customs Tariff. This provision provides the authority for the Governor in Council, on the recommendation of the Minister of Finance and the Minister of Foreign Affairs, by order, to make goods that originate in any country subject to a surtax for the purpose of responding to acts, policies or practices of a country that adversely affect, or lead directly or indirectly to adverse effects on, trade in goods or services of Canada.

Subsection 5(6) of the Export and Import Permits Act provides authority for the Governor in Council to add goods to the Import Control List if, for the purpose of facilitating the implementation of action taken under paragraph 53(2)(d) of the Customs Tariff, the Governor in Council considers it necessary to control the importation of those goods or collect any information with respect to their importation.

Regulatory analysis

Benefits and costs

Baseline scenario

In the baseline scenario previously in effect, the TRQ did not apply to countries with FTAs in force with Canada. In addition, the TRQ only applied on quantities imported from non-FTA partner countries that exceed 100% of 2024 levels. The Government heard concerns that such a measure may not be sufficiently effective in addressing the risk of important quantities of steel, including those produced under non-market conditions or against Canadian values, from being diverted into the Canadian market. This in turn could damage the viability of domestic producers, putting at risk the long-term ability of Canada to remain self-reliant. As well, the initial structure of the TRQ based on five broad categories could disrupt the domestic steel market given risk of distortions in Canada’s import product composition.

Regulatory scenario

With the changes made by these orders, the TRQs will apply to all countries, except for the United States and Mexico. Surtaxes will apply to imports in excess of 100% of levels established in 2024 from countries with FTAs in force with Canada and 50% from non-FTA partner countries. The quotas will also be restructured using a greater number of product categories to allow for greater precision and reflecting the refined scope of the measure. A limit of 50% is also imposed on the maximum surtax that could be applicable under the Customs Tariff. This may result in a greater overall average cost for imported steel products in Canada.

Impacts

These amendments will further address risks to Canada’s steel industry and workers related to the diversion of steel into the Canadian market and the persistent global excess capacity caused by non-market practices of certain foreign governments, including insufficient or non-existent labour and environmental standards that are contrary to Canadian values.

The amendment to the Order Imposing a Surtax on the Importation of Certain Steel Goods will account imports from additional countries under the TRQs, thereby further defending Canadian steel industry and workers from steel trade diversion. The quota volumes are calibrated at the new limits to avoid unintended or undue impacts on downstream industries that rely on imported steel inputs. Further adjustments may be made based on market dynamics and the outcomes of future review processes.

The Government expects additional potential administrative burden, updates to the New Export Import Control System (NEICS) and complexities as a result of these amendments. More specifically, the inclusion of FTA partner countries (except for the U.S. and Mexico) in the TRQs, as well as restructuring of quotas to add granularity to product categories, will increase the number of importers implicated and the number of permits that will be required.

For businesses wishing to import subject steel goods within the quantity set by the Surtax Amending Order (without paying the surtax), there will be incremental costs associated with permit fees of up to $31 per permit. The permit fee is determined by the value of the goods and varies depending on whether the permit is issued through a customs broker or by Global Affairs Canada.

Based on the 2024 volume and value of covered products, and assuming no reductions in imports from non-FTA partner countries, it is expected that approximately 1.2 million tonnes of steel product imports from non-FTA partner countries could be subject to the surtax, at a total estimated incremental surtax cost of $711 million. However, these estimates likely overstate the impact of shifts in trade patterns, including the possibility for importers to source from domestic producers.

Based on these amendments, it is estimated that roughly 53 000 permits could be issued over the year for a total estimated cost to business of $1.6 million. The surtax savings to importers will far outweigh the costs associated with requesting import permits. Importers who do not wish to apply for a shipment-specific permit may import these goods without quantitative limits under an applicable General Import Permit, but these imports will be subject to the 50% surtax. Industry may also incur costs and require time to implement system changes needed to be compliant with these amendments.

The Government has implemented a remission framework and process, under which exceptional relief from tariffs imposed as part of Canada’s response to U.S. trade actions could be considered.

Small business lens

Analysis under the small business lens determined that these amendments will impose administrative and compliance requirements on Canadian small businesses. An overall decrease in the number of imports that would be covered under surtax-exempt quotas will be reduced, which could potentially increase the average cost of importation of steel products into Canada. In addition, more imports will require permits, for which the processes of obtaining may present a barrier to entry for small businesses. In the event of delays in receiving import permits, the obligation to request refunds or remissions on any overpaid surtax may impose additional administrative burden on importers, with effects disproportionately felt by small businesses. No additional flexibility is being provided to small businesses, as this measure is designed to protect Canadian industry, and the administrative requirements are integral to its design and function.

One-for-one rule

The one-for-one rule applies, since there is an incremental increase in the administrative burden on business. However, duties are considered taxes for the purposes of the one-for-one rule, and paragraph 6(a) of the Red Tape Reduction Regulations authorize the Treasury Board to exempt regulations related to tax and tax administration. As a result, the orders are exempted from the requirement to offset burden and titles under the rule.

The amendments impose some administrative burden on steel importers. Steel importers of applicable goods would now need to apply for a shipment-specific permit, whereas they previously could just cite a General Import Permit. The application process for a shipment-specific permit is an administrative burden in nature according to the definition provided under the Red Tape Reduction Act. The application process could include applying for an EIPA number and updating/changing their technical systems.

Regulatory cooperation and alignment

Canada is taking action to ensure that its steel industry is not unduly affected by trade diversion as a result of U.S. tariff actions and global excess capacity, and it will engage as needed with other international partners who may be affected by these issues.

Effects on the environment

Limiting diversion of steel imports from certain non-market countries, which are among the most carbon-intensive in the world, is expected to have positive environmental impacts, as these steel imports are expected to be replaced by domestic and other foreign sources that are less carbon-intensive. For example, the average CO2 emissions intensity for steel production in China is about 1.9 tons of CO2 per ton produced; this is similar to Brazil. For India, it is about 2.2 tons. Conversely, Canada is relatively cleaner at approximately 1.2 tons. The ultimate impact will depend on the degree to which the surtax alters trade patterns and the relative carbon intensity of alternative sources.

Gender-based analysis plus

No impacts based on gender and other identity factors have been identified for these orders.

Rationale

Following an initial review of the existing steel TRQ measure and feedback from Canadian steel producers, the Government has determined that further actions are warranted to ensure stability in the domestic steel market, and to better address the risk of steel trade diversion from third countries into the Canadian market.

More specifically, the Government has determined that

Implementation, compliance and enforcement, and service standards

These orders will come into force on August 1, 2025. Subject to any amendments, they will be repealed on June 27, 2026, the first anniversary of the day on which the original Order came into force. The orders will be reviewed on an ongoing basis to account for market developments, ongoing trade discussions with other countries, and to assess impacts. Further adjustments, including potential extensions or termination, may be made when warranted.

The Canada Border Services Agency is responsible for administering Customs Tariff legislation and regulations, and Global Affairs Canada is responsible for issuing import permits for goods on the Import Control List, under the Export and Import Permits Act. The Canada Border Services Agency and Global Affairs Canada will revise their public notices to inform importers of the change resulting from these amendments.

Contact

Alan Ho
Director
Strategic Issues
International Trade Policy Division
Department of Finance
Ottawa, Ontario
K1A 0G5
Email: fin.simaconsult-lmsiconsult.fin@fin.gc.ca