Canadian Surtax Updates

Amidst the uncertainty of these interesting times, it can be a challenge to keep up to date with various tariffs, retaliatory measures and surtaxes. Thankfully, the Canadian Department of Finance has kept its latest update, regarding the Tariff Rate Quotas applied to steel, short and sweet.

The Canadian Government is strengthening its TRQs for steel products (implemented June 27, 2025).

• Effective August 1, 2025: TRQs will be extended to countries that have a free trade agreement in force with Canada, with the exception of the United States and Mexico. This will result in a 50 per cent surtax being applied on steel imports above 100% of 2024 levels.  
• For those countries that do not have a free trade agreement with Canada, the quota for tariff-free imports will be reduced to 50 per cent of 2024 levels. A 50 percent surtax will be applied on steel imports exceeding this threshold.
• The government will consult with industry to finalize adjustments to other design elements of the tariff rate quotas.

A 25 percent surtax will also be applied on imports from all countries other than the U.S. that contain steel melted and poured in China. This will increase transparency in the domestic supply chains and help prevent circumvention of Canada’s trade measures. The product scope of the surtax would align with the existing China Surtax Order on steel. This measure will be implemented before the end of July.  

Unfortunately, we are still left waiting on certain Orders In Council that have been hinted at by the Canadian Department of Finance. While they are continuing to consult with importers and industry, no Customs Notice has been released regarding the application of OICs for further remissions.

If you would like more information on CARM or Canadian surtaxes, please contact Allyn International at sales@allynintl.com or 239-489-9900. Allyn International Services, Inc. (Allyn) is a privately-owned supply chain management, tax and customs consulting firm established in 1992. Our services comprise of supply chain & logistics management, global trade compliance and US tax compliance. Allyn offers customized solutions to meet your global needs with offices in Fort Myers, Fla., Shanghai, PR China, and Prague, Czech Republic.

Contributor: Rebecca Anderson

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About Allyn International

Allyn International is dedicated to providing high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance. Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North and South America, Europe and Asia. Allyn’s regional headquarters are strategically located in Fort Myers, Florida, U.S.A., Shanghai, P.R. China, Prague, Czech Republic, and Dubai, U.A.E. For more information, visit www.allynintl.com.