The Canadian government has announced that it will extend key tariff measures on steel and aluminum by one year to support domestic workers and businesses while maintaining protection from steel trade redirection, non-market practices, and global overcapacity.
According to a statement released by the Treasury Department, Canada will extend the steel tariff quota regime for imports from non-CUSMA partners until June 27, 2027, while existing horizontal tariff exemptions for eligible steel and aluminum products from the United States, as well as steel products subject to derivative tariffs, will extended until June 30, 2027.
The Canadian Ministry of Finance said the extension would provide producers and importers with greater business predictability and long-term confidence, while helping the government protect the Canadian steel industry and its workers from the impact of trade flows caused by overcapacity and unfair market conditions.
Under the current framework, quota levels will continue to be based on 20 percent of imports in 2024 for partners without a free trade agreement with Canada and 75 percent of imports in 2024 for partners with an existing free trade agreement with Canada, while imports exceeding the limits quotas will continue to be subject to a 50% tariff. Canada will also continue to exempt the United States and Mexico from steel tariff quotas.
Following the planned extension, the Government intends to consider a distribution-based approach to quota administration for certain product classes, with manufacturers and importers expected to be invited to share their views as part of the ongoing review of the tariff rate quota system.
