Canada Further Restricts Steel Imports

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Dec. 1, 2025
By: Pietro N. Bianchi

Canadian Prime Minister Carney announced a number of measures to protect the Canadian steel and lumber industries.



Effective December 26, 2025, Canada will impose a 25% tariff on certain steel-derivative products from all countries. The list of steel-derivatives, which Prime Minister Carney said may be updated periodically, includes:

• Certain shapes of iron/non-alloy steel
• Doors and windows
• Wire, ropes, cables, and chains
• Fasteners (e.g., nails, screws)
• Structures (e.g., prefabricated buildings, bridges, and wind towers)
• Steel and iron cloth, grille, and netting
• Seating with metal frame and certain metal furniture

Also, effective December 26, 2025, Canada will tighten tariff rate quota levels for steel products:

• From 50% to 20% of 2024 levels for non-free trade agreement (FTA) partners; and
• From 100% to 75% of 2024 levels for FTA partners (except USMCA partners).

This means that Canada will allow less steel to be imported at a reduced rate.

To provide a transition period for Canadian businesses, which will face higher tariffs on imports and less import volume with a quota exemption, the expiration date on Canada’s temporary remission of counter-tariffs on U.S. steel used for manufacturing, processing, food and beverage packaging, and agricultural production was pushed back from December 15, 2025, to January 31, 2026. Other remissions of counter-tariffs were unaffected. These tariff changes will be accompanied by improved border security and various industrial policies to promote industry growth.

While the steel tariffs and quotas are not specific to the U.S., the U.S. is Canada’s largest trading partner and these tariffs will likely harm U.S. exports to Canada. Further, Prime Minister Carney stated that these changes are meant to address the “disruption and upheaval for Canadians” caused by the U.S.’s changing trade policy.

If you have questions about tariffs, trade remedies, or free trade agreements, do not hesitate to contact an attorney at Barnes Richardson, & Colburn LLP.