Effective September 8, 2026, the Government of Canada increased surtax rates on select U.S.-origin steel and aluminum products from 25% to 50% under the updated United States Surtax Order (Steel and Aluminum 2025). These changes were introduced in response to new U.S. Section 338 tariffs on Canadian goods.
Key Changes to the Order
- Certain U.S.-origin steel and aluminum products have been moved into new schedules and are now subject to a 50% surtax.
- Other steel and aluminum products remain subject to the existing 25% surtax.
- The surtax continues to be calculated on the Value for Duty (VFD) and is payable in addition to any applicable customs duties, GST, and SIMA duties.
Important Relief Provisions
- Goods that were already in transit to Canada on or before September 8, 2026, remain eligible for the previous 25% surtax rate, provided importers maintain supporting transportation documentation.
- Existing remission programs, Duty Relief, and Duty Drawback provisions remain available for qualifying importers and products.
The Order in Council can be found here:
Order Amending the United States Surtax Order (Steel and Aluminum 2025)
The updated Customs Notice 25-11 can be found here:
Customs Notice 25-11: United States Surtax Order (Steel and Aluminum 2025)
