Canada Extends Steel and Aluminum Tariff Measures Through 2027
On June 3, 2026, Canada’s Department of Finance announced that it will extend several key tariff measures affecting steel and aluminum imports for another year. The move is aimed at protecting domestic producers from trade diversion and unfair global competition while giving businesses more certainty as they plan ahead.
Under the extension, Canada’s steel tariff rate quota system for countries without a free trade agreement with Canada will now run through June 27, 2027. Separately, existing tariff relief for eligible U.S. steel and aluminum products, along with related relief for steel goods subject to derivative tariffs, will be extended through June 30, 2027. Both measures had been set to expire this summer before the announcement.
Quota levels themselves are not changing. Import limits remain set at 20% of 2024 volumes for trade partners without a free trade agreement with Canada, and 75% for partners that do have one. Any imports that exceed these thresholds continue to face a 50% tariff. As before, the United States and Mexico remain exempt from the quota system under CUSMA.
Alongside the extension, the government also plans to explore a new allocations based approach for administering quotas on certain product categories. Producers and importers will reportedly have a chance to weigh in on that process in the coming months as part of a broader effort to refine how the quota system works.
Finance Minister François Philippe Champagne said the extension is meant to give Canadian steel and aluminum workers and businesses added stability, noting that “we are providing the clarity and predictability businesses need to thrive” while continuing to push back against trade practices that contribute to global excess capacity. Other officials, including the Ministers of International Trade and Industry, echoed similar points about protecting jobs and strengthening domestic supply chains.
The extension also builds on existing federal support for the sector, including a $5 billion Strategic Response Fund, a $1 billion financing program through the Business Development Bank of Canada for metal manufacturers and exporters, and targeted regional funding aimed specifically at steel producers.