Department of Finance of Canada

06/03/2026 | Press release | Distributed by Public on 06/03/2026 14:10

Canada to extend steel and aluminum tariff measures to support workers and businesses

Canada to extend steel and aluminum tariff measures to support workers and businesses

From: Department of Finance Canada

News release

Today, the Minister of Finance and National Revenue, the Honourable François-Philippe Champagne, announced the government will be extending key steel and aluminum tariff measures for one year.

June 3, 2026 - Ottawa, Ontario - Department of Finance Canada

The world is changing rapidly-and the Government of Canada is focused on what we can control-building a stronger, more independent, more resilient Canadian economy. We are moving with speed and ambition to diversify our trade partners abroad and build our strength at home.

Today, the Honourable François-Philippe Champagne, Minister of Finance and National Revenue, announced the government will be extending key steel and aluminum tariff measures for one year.

Subject to approval by the Governor in Council, Canada will extend its steel tariff-rate quotas (TRQ) regime for imports from non-CUSMA partners, and the existing horizontal tariff relief for eligible steel and aluminum products from the United States (U.S.), and additionally, for eligible steel products subject to derivative tariffs. These measures would be extended to June 27 and June 30, 2027, respectively.

This proposed one-year extension is part of Canada's commitment to defend steel workers and industry against steel trade diversion and non-market policies and practices that drive global excess capacity. It will provide producers and importers with greater business predictability and longer-term certainty.

Following the planned extension of steel TRQs, the government intends to initiate efforts towards the inclusion of an allocations-based approach for the administration of quota for certain product classes. Stakeholders, including producers and importers, will be offered the opportunity to share their views on the approach, reflecting the government's ongoing commitment to review and improve the TRQ framework.

Current quota levels for the TRQs would continue to be based on 20% of 2024 volumes for partners without a free trade agreement with Canada, and 75% for partners with a free trade agreement in force with Canada. Imports exceeding quota limits will continue to be subject to a 50% tariff. Canada will also continue to exempt its CUSMA partners, the United States and Mexico, from the TRQs.

Concurrent with these extensions, the government will engage with Canadian producers to ensure its remission processes continue to support a competitive domestic steel marketplace.

At this critical time in Canada's history, Canada's new government is ensuring strategic sectors are ready to seize new domestic and international markets, and that Canadian workers and businesses have the certainty they need to build Canada strong for all.

Quotes

"Supporting Canada's steel and aluminum industry means strengthening our regional economies and the future of shared prosperity. This is about continuing to stand up for our steel and aluminum workers and industries and the communities that rely on them. With this one-year extension, we are providing the clarity and predictability businesses need to thrive, while protecting good Canadian jobs from steel trade diversion and non-market practices that drive global excess capacity."

- The Honourable François-Philippe Champagne, Minister of Finance and National Revenue

"Canada is taking measured and responsible action to protect Canadian workers, strengthen our economic resilience, and support industries facing ongoing global trade pressures. Extending these measures will help provide greater certainty for Canadian businesses while ensuring Canada continues to defend a strong, fair, and competitive trading environment that supports our long-term economic security."

- The Honourable Maninder Sidhu Minister of International Trade

"The steel and aluminum industries are central to Canada's economic strength and to the prosperity of communities nationwide. Extending this support will ensure our workers and producers have the certainty they need to remain competitive and grow. At a time of global uncertainty, we will continue to stand up for Canadian industry-protecting good jobs and building stronger, more resilient supply chains."

- The Honourable Mélanie Joly, Minister of Industry and Minister responsible for Canada Economic Development for Quebec Regions

Quick facts

  • A tariff rate quota is a trade measure that establishes a limit on the quantity of a product that may be imported duty-free or at a lower rate of duty, but places no limit on the amount of product that may be imported at a higher rate of duty.

  • The temporary remission of Canadian tariffs on steel and aluminum provides time-limited relief to Canadian businesses that rely on U.S. inputs to support their competitiveness, as well as to entities integral to Canadians' health and safety. Before today's announcement, it was set to expire on June 30.

  • Steel and aluminum goods eligible for continued horizontal tariff relief include those used in auto and aerospace manufacturing and for public health, health care, public safety, and national security purposes. U.S. aluminum goods used in manufacturing, processing, food and beverage packaging, and agricultural production are also eligible for extended tariff relief. The Buy Canadian Policy (launched in December 2025) strengthens domestic demand and supply chains by prioritizing Canadian suppliers and requiring the use of Canadian steel and aluminum in major federal procurement projects.

  • The government is also providing direct financial support to industry, including a $5 billion Strategic Response Fund, a $1 billion Business Development Bank of Canada financing program for metal manufacturers and exporters, and targeted supports under the Regional Tariff Response Initiative, including funding dedicated to steel producers.

Associated links

Contacts

Media may contact:

John Fragos

Press Secretary Office of the Minister of Finance and National [email protected]

Media Relations
Department of Finance Canada
[email protected]
613-369-4000

General enquiries

Phone: 1-833-712-2292 TTY: 613-369-3230 E-mail: [email protected]

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