One of the more significant cost factors on certain Canadian steel imports over the past year is now approaching a scheduled end date. The Order Imposing a Surtax on the Importation of Certain Steel Goods is on track to be repealed at the end of June 2026, which would remove a 50% surtax from a defined slice of steel shipments. Here is where things stand and what importers should be doing now.
What the Order Does
The Order applies a 50% surtax on steel imports that exceed tariff-rate quotas, specifically from countries that do not have a free trade agreement with Canada. It came into force on June 27, 2025 with a built-in one-year sunset clause. Per the Canada Gazette, the Order is scheduled to be repealed on June 27, 2026, the first anniversary of its coming into force, subject to any amendments.
Still Under Review
While the sunset date is on the books, the repeal is not yet a certainty. The Canadian Society of Customs Brokers (CSCB) has relayed that it confirmed with the Department of Finance that the measure remains under review. Because the Order is reviewed on an ongoing basis, an extension or amendment remains possible, so the June 27 repeal should be treated as the expected outcome rather than a guaranteed one.
What It Means for Importers
A repeal would lower landed costs on affected steel imports by removing the 50% surtax from over-quota volumes sourced from non-FTA countries. That is a meaningful change for any importer who has been absorbing or passing through that cost since mid-2025.
- Watch for confirmation. Monitor for official confirmation of the repeal date before assuming the surtax no longer applies to shipments arriving on or after June 27, 2026.
- Plan for both outcomes. Because the measure is still under review, prepare duty calculations for both a clean repeal and a possible extension or amendment.
- Check entry timing. The treatment of goods crossing right around the sunset date can hinge on the date of importation, so coordinate timing on affected shipments.
NGB is tracking this Order and will advise clients as soon as the repeal is confirmed or any amendment is announced, so duty calculations can be adjusted with confidence.
