The Canadian Department of Finance has announced that the government will extend its key steel and aluminum tariff measures for one year, providing producers and importers with greater business predictability amid ongoing global trade pressures.
Subject to approval by the Governor in Council, Canada will extend its steel tariff rate quota (TRQ) regime for imports from non-US -Mexico-Canada Agreement (USMCA) countries until June 27, 2027, while the existing horizontal tariff relief for eligible steel and aluminum products from the US, as well as for eligible steel products subject to derivative tariffs, will be extended until June 30, 2027. Before the announcement, the tariff relief had been set to expire on June 30 this year.
Current quota levels under the TRQ regime will remain unchanged, based on 20 percent of 2024 import volumes for countries without a free trade agreement (FTA) with Canada and 75 percent for countries with an FTA in force. Imports exceeding the quota limits will continue to be subject to a 50 percent tariff, while Canada's USMCA partners, the US and Mexico, will remain exempt from the TRQs.
Following the extension, the government stated it intends to begin work on introducing an allocations-based approach for the administration of quotas for certain product classes, with producers and importers to be given the opportunity to share their views on the new approach. The government will also engage with Canadian producers to ensure its remission processes continue to support a competitive domestic steel market.
"With this one-year extension, we are providing the clarity and predictability businesses need to thrive, while protecting good Canadian jobs from steel trade diversion and non-market practices that drive global excess capacity," François-Philippe Champagne, minister of Finance and National Revenue, said.
The extension comes shortly after the US implemented further adjustments to its Section 232 tariffs on steel, aluminum, copper and their derivative products, which entered into force on June 8, as SteelOrbis previously reported.