Dear valued client,

The Department of Finance Canada has shared important information regarding new Canadian tariffs on steel derivative products, which will have direct implications for importers beginning December 26, 2025.

These measures form part of the Government of Canada’s broader strategy to limit foreign steel entering the Canadian market and to strengthen domestic steel production.

New 25% tariff on steel derivative products

The Government of Canada will impose a 25% tariff on the full value of certain steel derivative products imported from all countries.

• The tariff applies to a defined list of steel derivative products, as set out in Canada’s Customs Tariff.
• Product descriptions are illustrative; classification is determined by the tariff item (HS code).
• The tariff applies regardless of country of origin, unless an exclusion applies.

More details on tariff administration will be issued by the CBSA through Customs Notices.

Products covered (high-level categories)

The new 25% tariff applies to steel derivative products across several categories, including:

• Certain shapes of iron or non-alloy steel
• Doors, windows, and frames
• Steel structures (e.g., bridges, prefabricated buildings, towers, wind towers)
• Wire, ropes, cables, mesh, grille, and netting
• Chains
• Fasteners and hardware (e.g., nails, screws, bolts, washers)
• Steel and iron cloth and expanded metal
• Springs and other steel components
• Seating with metal frames and certain metal furniture
• Modular and prefabricated steel buildings, silos, and related structures

A detailed HS-code-level list has been published by the CSCB and the Department of Finance.

Key exclusions and exemptions

The 25% tariff will not apply to:

• Goods already subject to tariffs under:
• China Surtax Order (2024)
• United States Surtax Order (Steel and Aluminum 2025)
• Other existing steel and aluminum surtax orders
• Casual goods
• Goods classified under Chapter 98 of the Customs Tariff
• Goods imported before July 1, 2026 for use in:
  • Motor vehicles, chassis, or related parts and accessories
  • Aircraft, ground flying trainers, spacecraft, or related parts
• Utility wind towers (HS 7308.20.00) imported for energy projects located west of the Ontario–Manitoba border
• Goods already in transit to Canada on the date the tariffs come into force

Remission considerations

Requests for tariff remission on steel derivative products may be considered on a case-by-case basis, particularly where:

• Goods cannot be sourced domestically; or
• Exceptional circumstances would result in severe adverse impacts on the Canadian economy.

Importers may continue to rely on the existing remission framework while awaiting further CBSA guidance.

Impacts & recommended actions

What this means for importers

• Higher landed costs due to the new 25% tariff on covered steel derivative products.

• Increased exposure for imports relying heavily on steel content.

• Potential supply-chain disruptions and sourcing challenges.

• Increased pressure to shift toward Canadian or CUSMA-origin sourcing.
  
  

Recommended next steps

• Review open purchase orders and supply contracts extending beyond December 2025.

• Identify shipments potentially impacted by the new derivative tariffs.

• Confirm HS classifications for steel-derived goods.

• Budget for increased duties and potential pricing adjustments.

• Evaluate domestic or CUSMA-compliant sourcing alternatives.

• Consider remission applications where domestic sourcing is not feasible.

For further guidance or support in assessing the impact on your operations, please contact your JORI representative.

Thank you for your continued partnership.

Kind regards,

JORI Logistics
CARM Support Team
carm@jorilogistics.com