By: Brian Walczyk, Compliance Manager, TradeInsights, LCB, CCS

The Canadian Department of Finance announced a list of steel derivative products that will be subject to a 25% tariff, starting on December 26th, for those goods imported into Canada. The article includes a reference to the specific order and CBSA notice covering all pertinent details.

Summary

• Effective December 26th, 25% tariff on Steel Derivative Article enumerated in Schedule 1.
• The tariff will not apply to:
  – Casual goods
  – Goods subject to the China Surtax Order (2024), US Surtax Order (Steel and Aluminum 2025), the Order Imposing a Surtax on the Importation of Certain Steel Goods or the Steel Goods and Aluminum Goods Surtax Order
  – Goods classified under a tariff item of Chapter 98
  – Goods that are imported before July 1, 2026 for use in the manufacture of motor vehicles, their chassis, or their parts and accessories
  – Goods that are imported before July 1, 2026 for use in aircraft, ground flying trainers or spacecraft, or as parts for those goods
  – Utility wind towers and sections of those towers classifiable under 7308.20.00 and imported for installation in energy projects located west of the Ontario-Manitoba border;
  – Goods that are in transit to Canada on the day on which the tariffs come into force.

The news does include a note that a process for requests for remission will be allowed on a case-by-case basis.

We will continue to monitor the situation and issue updates as warranted. Please contact your V. Alexander account team, or you may also contact our Trade Compliance team at tradeinsights@valexander.com with any questions, and you can always follow us on our website www.valexander.com for updates on this and other topics.