Canada Imposes Surtax On Steel And Aluminum Imports That Have Content From China

On July 31, the Canadian government implemented a 25 percent surtax on certain steel and aluminum imports that contain materials from China. The surtax will be charged in addition to all applicable duties and taxes, including customs duties, anti-dumping duties, and the Goods and Services Tax. The policy includes exemptions for goods that were in transit before July 31, goods coming into Canada from the United States, shipments that amount to less than C$5,000, casual goods, and other certain tariff classifications.

Under the policy, importers must provide certificates or reports that prove goods do not contain steel or aluminum melted, poured, smelted, or cast in China. If they do not, the surtax will apply. Proof of origin may be in the form of a commercial invoice, a Canada Customs Invoice, or any other documentation that indicates the country of origin of the goods, however the documentation must meet the requirements of any applicable obligations established under a free trade agreement or under Canada’s Most-Favored-Nation (MFN) or General Tariff treatment provisions.

After Sept. 22, 2025, commercial invoices and reports alone will not be accepted as proof of origin. Government officials said the surtax is necessary to address risks associated with persistent global overcapacity and non-market policies and practices in the steel and aluminum sectors, which are exacerbated by restrictive trade measures taken by the United States, notably through its imposition of Section 232 tariffs on steel and aluminum.

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