New reduced tariff rate quota (TRQ) levels

Effective December 26th, 2025, Canada will further reduce the tariff rate quota (TRQ) levels for steel imports that came into force in June of 2025.

What are TRQs?

TRQs are quotas set by the Canadian government on quantities of imported steel products (expressed in kgm) that can enter Canada each specified quarter without incurring significant surtax. They are currently based on the 2024 import volumes of 23 different steel product categories, with country-specific shares capped at certain amount to ensure fair access. Once the limit of each category is reached, any excess product imported will be subject to a 50% surtax.

In order to claim some of the available quota, Importers must obtain a shipment specific import permit from Global Affairs Canada. Applications are accepted up to 15 days before the shipment’s expected release date and are valid 5 days before and up to 24 days after the anticipated release date. Permits require declaration of country of melt and pour (on top of country of origin) and must align with customs documentation. For more information or assistance with applications, please contact us.

Under the new TRQ measures:

• Quotas for tariff-free steel imports are reduced from 50% currently, to 20% of the 2024 levels for non-free trade agreement 'FTA' countries.

• For free trade agreement partners other than participants in the Canada-United States-Mexico Agreement (CUSMA), the quota will decrease from 100% currently, to 75% of 2024 levels.

No in-transit exemptions to account for reductions have been established. TRQ permits issued for the current quarterly period ending December 25^th, 2025, will not be affected.

Recommended action for importers:

• Ensure timely permit application - Shipment-specific permits can be applied for up to 15 days before the expected release date of your shipments. If you would like R&R to process applications on your behalf, please ensure customs documentation is sent to us well in advance.

• Monitor quota utilization data - Plan your shipments to arrive early in the designated quota periods to avoid untimely surtax. Utilization data for each type of steel can be viewed on the Government of Canada’s website here.

• Prepare compliant customs documentation – Accurately declare the country of melt of pour on commercial invoices and keep documentation ready to substantiate any permit extensions or retroactive permit requests.

• Evaluate financial risk - TRQs are subject to change as economic and trade conditions evolve. Businesses using steel in their supply chains, construction, infrastructure and energy projects should evaluate the financial risks these orders may pose to your operations should they change.