On July 23, 2026, the Government of Canada began inviting input from stakeholders on the administration of the tariff-rate quotas (TRQs) on certain steel goods. These tariff-rate quotas have been in place since June 27, 2025 and were most recently amended on June 28, 2026. Until August 19, 2026, interested parties will be able to make submissions through an online questionnaire with comments on how the TRQs are administered. Interested parties may include (but are not limited to) businesses, importers, manufacturers, industry associations, and international trading partners. The consultation process does not cover tariff-rate quotas on steel derivative products, which were introduced in December 2025, or the counter-tariff on steel that was introduced in response to US tariffs in March 2025.
Origins and Administration of the TRQs
The TRQs on certain steel imports were introduced last year to address the risk of steel being diverted into the Canadian market following the US imposition of trade restrictions, and to protect against excess global capacity. Products covered by the TRQs include tin, rebar, steel wire, and standard pipes, among others. A full list of the products to which the TRQs apply, as well as the relevant quota volumes can be found here. Goods that originate from Canada, the United States, and Mexico are exempt from the TRQs. For all other countries, the quotas vary based on whether the country has a free trade agreement with Canada.
The TRQs operate on quarterly periods during which importers may apply to Global Affairs Canada for shipment-specific permits. These permits are issued on a first-come first-served basis until the quota for a product has been filled for the period. After the total quota is filled, a 50% surtax applies to any subsequent imports of the relevant goods. Individual countries are also limited to a certain percentage of each product’s total quota. Once a country has reached the maximum share of the quota for a quarterly period, the 50% surtax will also apply to any further shipments.
Impact of the consultation on businesses
Businesses of any size, including small and medium enterprises, can make submissions to the Government of Canada through this public consultation.
The authors acknowledge the assistance of Allison Zhao in the preparation of this post.
