[SMM Iron & Steel] Canada Extends Steel Tariffs and Quotas Until 2027 to Shield Domestic Industry

Published: Jun 4, 2026 14:45

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The Canadian government has extended its critical metal tariff measures for one year, valid until June 27, 2027, to protect domestic producers from global excess capacity. Under the extended policy, non-CUSMA (Canada-United States-Mexico Agreement) steel imports exceeding set quotas will face a steep 50% tariff. The tariff-rate quota limits remain strictly capped at 20% of 2024 import volumes for non-free trade agreement (FTA) partners and 75% for FTA partners, while the US and Mexico maintain their exemptions. By locking in these stringent quota limits, Canada aims to prevent trade diversion and provide long-term predictability for local steel operations. However, this extension could constrain supply availability for Canadian downstream manufacturers reliant on offshore steel, potentially driving up domestic premium prices in the medium term.

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