Government implements new measures to protect Canada’s steel industry

From: Department of Finance Canada

News release

December 12, 2025 – Ottawa, Ontario - Department of Finance Canada

In a rapidly changing and uncertain world, Canada’s new government is focused on what we can control. It has a plan to protect and strengthen the sectors most affected by U.S. tariffs. This includes helping Canadian industries adapt to this new global landscape.

Today, the Honourable François-Philippe Champagne, Minister of Finance and National Revenue, announced the implementation of new measures announced by the Prime Minister on November 26, designed to provide immediate relief and long-term clarity for Canadian manufacturers.  

To give Canadian businesses stability as they adjust supply chains, the horizontal remission of Canadian tariffs on imports from the United States has been temporarily extended as follows:

  • to January 31, 2026 for steel goods, used for manufacturing, processing, food and beverage packaging, and agricultural production in Canada, with the exception of steel goods used for the manufacturing of motor vehicles, aerospace goods, and their parts, for which remission is extended to June 30, 2026.
  • to June 30, 2026, for aluminum goods used for manufacturing, processing, food and beverage packaging, and agricultural production in Canada; and
  • to June 30, 2026, in the case of any goods used for public health, health care, public safety and national security purposes.

The extended remission period will provide more predictability to businesses as they adjust their supply chains to transition from imported sources to Canadian domestic supply.

The Government of Canada also published today the list of imported steel-derivative products that will be subject to a 25 per cent global tariff, effective December 26, 2025.

As announced by the Prime Minister, tariff rate quota levels for imported steel products will also be reduced effective December 26, 2025:  to 20 per cent of 2024 levels for non-free trade agreement (FTA) partners, and 75 per cent of 2024 levels for non-CUSMA FTA partners.

Quotes

“Canada's new economic plan is focused on resilience. By implementing these clear, targeted measures, we are sending a strong signal: the government stands behind workers and businesses. We will be there to support them as Canada transitions from an economy dependent on a single trading partner to one that is resilient to global shocks.”

- The Honourable François-Philippe Champagne,
Minister of Finance and National Revenue

Quick facts

  • The temporary remission of Canadian tariffs on steel and aluminum entered into force on April 16, 2025. It provides time-limited relief to Canadian businesses that rely on U.S. inputs to support their competitiveness, as well as to entities integral to Canadians’ health and safety. Before today’s announcement, it was set to expire on December 15.

  • Canada’s counter tariffs on U.S. steel, aluminum, and automobiles remain in effect as negotiations with the U.S. continue. 

  • Canada maintains a non-stackable policy for its tariffs on steel and aluminum. Only one of these measures can apply to a particular good, following this order of precedence:

    1. Tariffs on steel imports over the established tariff rate quotas for non-CUSMA countries
    2. Either: a) tariffs on U.S. steel and aluminum products; b) tariffs on Chinese steel and aluminum products; or c) tariffs on non-U.S. imports that contain steel melted and poured, or aluminum smelt and cast, in China.
    3. tariffs on steel derivative products from all countries (effective December 26, 2025)

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Contacts

Media may contact:

John Fragos
Press Secretary
Office of the Minister of Finance and National Revenue
john.fragos@fin.gc.ca

Media Relations
Department of Finance Canada
mediare@fin.gc.ca
613-369-4000

General enquiries

Phone: 1-833-712-2292
TTY: 613-369-3230
E-mail: financepublic-financepublique@fin.gc.ca

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2025-12-12