Editorial Team, [2026] 182 taxmann.com 225 (Article)
Global IDT Insights provides a weekly snippet of tax news specifically related to Indirect Taxes from around the globe.
1. Canada announces tariff measures affecting steel and steel derivative imports
Canada has issued measures setting out changes to tariff rate quotas and the imposition of additional tariffs on certain steel and steel derivative imports. The measures address the treatment of tariff-free import volumes, over-quota surtaxes, and new customs duties applicable to specified products, with direct implications for importers and customs compliance.
The measures focus exclusively on tariff mechanisms, including reductions in existing tariff rate quotas, continuation of surtaxes on over-quota imports, and the introduction of a new tariff on identified steel derivative products.
Key aspects of these tariff measures include:
(a) Reduction of tariff rate quotas for steel imports from non-free trade agreement countries
Canada will reduce the volume of steel that may be imported tariff-free from countries that do not have a free trade agreement with Canada. Imports exceeding the revised quota levels will continue to be subject to surtaxes under the existing tariff framework.
Effective 26-12-2025, tariff rate quotas for non-free trade agreement countries will be reduced from 50% to 20% of 2024 levels. Steel imports in excess of these reduced quotas will continue to attract a 50% surtax.
(b) Reduction of tariff rate quotas for steel imports from free trade agreement countries
Canada will also reduce tariff-free import volumes for steel originating from countries that have a free trade agreement in force with Canada. This reduction applies without altering the applicable surtax on over-quota imports.
Effective 26-12-2025, tariff rate quotas for free trade agreement countries will be reduced from 100% to 75% of 2024 levels. Steel imports exceeding these quotas will continue to face a 50% surtax. The existing carve-out under the Canada-United States-Mexico Agreement will continue, with steel imports from the United States and Mexico remaining exempt from these quota reductions.
(c) Imposition of a tariff on specified steel derivative products
Canada will apply a customs tariff on the full value of listed steel derivative products imported from all countries. The measure targets products where steel content constitutes a significant portion of the overall product value.
Effective 26-12-2025, a 25% tariff will apply to specified steel derivative products, based on an initial list expected to cover imports exceeding $10 billion in value. The identified categories include certain shapes of iron or non-alloy steel, doors and windows, wire and related products, fasteners, structures, steel and iron cloth and netting, and specified metal furniture. The list may be updated periodically to reflect changes in market conditions.
Source – Official Source
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