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As part of the Canadian Federal Government’s new round of retaliatory surtaxes that came into effect on September 8, 2026, consequential amendments were made to the United States Surtax Order (Steel and Aluminum 2025) (the “Steel/Aluminum Surtax”).
In this Steel Industry Report, we provide the contextual background for these amendments, outline what they are, and highlight some potential opportunities for relief for importers of US steel.
Background
Against the backdrop of ongoing trade negotiations between Canada and the US, President Trump enacted three Presidential Proclamations on July 20, 2026, imposing 50% tariffs on various Canadian dairy, alcohol, and motor vehicle products effective August 19, 2026. On August 18, 2026, President Trump enacted a further Presidential Proclamation postponing the imposition of these new tariffs to August 22, 2026, with a view to striking a trade deal with Canada in light of negotiation progress in the interim.
However, trade relations between Canada and the US ultimately collapsed on August 21, 2026, with President Trump’s new tariffs ultimately taking effect the following day.
This in turn led the Carney Government to institute a new round of surtaxes targeting various US origin goods. The new surtaxes came into force on September 8, 2026, and also included substantial changes to the Surtaxes already levied on US Steel and Aluminum.
Amendments to Steel/Aluminum Surtaxes
The biggest change will be jumping the Surtax rate from 25% to 50% on most US steel and aluminum goods: see Schedules 1.1 and 2.1.
A more limited number of Aluminum goods and Steel goods will remain subject to a 25% surtax, though these goods are primarily related to household necessities such as kitchen and bathroom ware, heading appliances, and parts therefore (under Schedules 1 and 2). Notably, no further products appear to be subject to theses surtaxes.
Opportunities for Surtax Relief
Remission remains an available and viable opportunity for relief from the Steel/Aluminum Surtax, provided the importer of record qualifies for/meets the conditions for relief.
Canada continues to have a two-stage remission process, where automatic remission is a possibility under a specific Remission Order, and barring that, a General Remission Application can be submitted under Canada’s General Remission Framework.
While claims for automatic surtax relief or General Remission may appear straightforward, the reality is that both processes are complex and difficult to navigate, and could benefit from professional assistance.
Takeaways
With the Canada-US trade war showing no signs of slowing down, imports of US Steel and Aluminum are caught in the mix, and now mostly subject to a 50% Surtax. Importers looking to minimize the financial pain of these increased Surtaxes can benefit from Experienced Customs & Trade Counsel – particularly in navigating the new divisions between 25% and 50% Surtaxes and evaluating remission opportunities.
For help with Canada’s Steel/Aluminum Surtax, please click here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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