Canada is extending its steel tariff-rate quotas and horizontal tariff relief on US steel and aluminium imports by one year to mid-2027, as Ottawa moves to shield domestic producers from trade diversion and global overcapacity while signalling plans to introduce an allocations-based quota framework.
Canada’s Minister of Finance and National Revenue has announced, on 3 June 2026, that the government will be extending key steel and aluminium tariff measures for one year.
Subject to approval by the Governor in Council, Canada will extend its steel tariff-rate quotas (TRQ) regime for imports from non-CUSMA partners, and the existing horizontal tariff relief for eligible steel and aluminium products from the US, and additionally, for eligible steel products subject to derivative tariffs. These measures would be extended to 27 June and 30 June, 2027, respectively.
This proposed one-year extension is part of Canada’s commitment to defend steel workers and industry against steel trade diversion and non-market policies and practices that drive global excess capacity. It will provide producers and importers with greater business predictability and longer-term certainty.
Following the planned extension of steel TRQs, the government intends to initiate efforts towards the inclusion of an allocations-based approach for the administration of quotas for certain product classes. Stakeholders, including producers and importers, will be offered the opportunity to share their views on the approach, reflecting the government’s ongoing commitment to review and improve the TRQ framework.
Current quota levels for the TRQs would continue to be based on 20% of 2024 volumes for partners without a free trade agreement with Canada, and 75% for partners with a free trade agreement in force with Canada. Imports exceeding quota limits will continue to be subject to a 50% tariff. Canada will also continue to exempt its CUSMA partners, the United States and Mexico, from the TRQs.
Concurrent with these extensions, the government will engage with Canadian producers to ensure its remission processes continue to support a competitive domestic steel marketplace.
