Canada imposes 25% global tariff on steel-derivative products to protect its industry

Canada introduced a 25% global tariff on specified steel‑derivative products, including some steel wire from the U.S., effective December 26, 2025. The measure targets overcapacity and dumping, and interacts with a separate 25% U.S.-origin surtax, making correct HS‑code classification critical for importers of fasteners and steel wire.

Canada now applies a 25% global tariff to a range of imported steel‑derivative products, including certain steel wire from the United States, effective December 26, 2025. The federal government says this policy will defend Canadian workers and the domestic steel industry from unfair and destabilizing trade practices.

​Officials designed the surtax to target items such as wind towers, prefabricated steel buildings, fasteners, and specified iron or steel wire products rather than raw steel alone. The measure fits into a broader Canadian strategy to counter global steel overcapacity and dumping pressures that have weighed on producers in recent years.

​Ottawa also maintains a separate 25% retaliatory surtax on a wide list of U.S.-origin goods under the United States Surtax Order (2025‑1), initially covering about C$30 billion in annual trade. Government schedules define coverage through detailed HS codes, and official summaries describe this as a structured retaliation system rather than an automatic 50% duty on steel‑derivative imports.

​Whether a shipment faces one or both 25% measures depends on its tariff classification and origin, so importers cannot assume simple stacking. Trade lawyers therefore urge companies to review HS codes and tariff items closely to determine if a particular fastener or steel‑wire shipment from the U.S. falls under the U.S.-origin surtax, the new global steel‑derivative surtax, or only one of them.

​Industry observers expect 2026 to bring new rulings and clarifications as businesses seek guidance from customs authorities on difficult classifications. Importers, distributors, and manufacturers that rely on steel wire and related products will need to update pricing models, contracts, and supply strategies to account for the additional 25% duty exposure.

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