Canada will extend its tariffs on steel and aluminium imports for a further year

The country is also extending preferential tariffs on certain US products

Canada will extend tariff rate quotas (TRQs) and preferential tariffs on imports of certain types of steel and aluminium from the US for a further year. This was announced by the country’s Finance Minister, François-Philippe Champagne, according to a government statement.

He cited the need to protect workers in the sector from global excess production capacity and to provide long-term certainty for producers and importers.

The extension of these measures, which is subject to government approval, will remain in force until 27 June and 30 June 2027 respectively.

Current quota levels will continue to be based on 20% of 2024 volumes for partners without a free trade agreement with Canada, and 75% for those with such an agreement. Imports exceeding the quota limits will continue to be subject to a 50% tariff. Canada will also continue to exempt its CUSMA (USMCA) partners – the US and Mexico – from tariff quotas.

Alongside the extension of these measures, the government will work with Canadian producers to ensure that the tariff exemption processes support a competitive domestic steel market.

It should be recalled that in May 2026, the Canadian government announced the launch of a C$1 billion ($734.6 million) credit programme to support sectors adversely affected by US tariffs. The initiative is primarily aimed at companies that manufacture and export steel, aluminium and copper products.