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TARIFF WAR - ROUND 2

CANADA IMPOSES TARIFFS ON US STEEL AND ALUMINUM

The trade war between Canada and the United States (“US”) has taken a further turn for the worse. On March 12, 2025, President Trump imposed 25 percent tariffs on Canadian steel and aluminum products. Canada has now retaliated in kind, enacting the United States Surtax Order (Steel and Aluminum 2025) , which targets a wide list of US steel and aluminum products with a 25 percent surtax (the “Steel & Aluminum Surtax”). Businesses seeking to understand the scope of the Steel & Aluminum Surtax and mitigate its effects will require assistance from experienced International Trade counsel.

A Brief Review

President Trump, through an executive order on February 11, 2025, previously announced that 25 percent tariffs would be imposed on Canadian steel and aluminum products. 

In response, Canada had planned to target US steel and aluminum products in a second round of tariffs targeting $125 billion in imports of US goods following a public consultation period, which we have previously written about here.

Following President Trump’s imposition of 25 percent tariffs on Canadian steel and aluminum products on March 12, 2025, Canada chose to immediately retaliate with the Steel & Aluminum Surtax.  The situation remains fluid at this time as President Trump has pledged to match Canada’s retaliatory tariffs.

Canada’s Steel & Aluminum Surtax

The Steel & Aluminum Surtax tariff item list targets $29.8 billion worth of US goods, encompassing a significant number of steel and aluminum tariff items:

• 29 tariff items targeted under Chapter 76 of the Customs Tariff (Aluminum and Articles thereof);
• 119 tariff items targeted under Chapter 72 of the Customs Tariff (Iron and Steel); and
• 136 tariff items targeted under Chapter 73 of the Customs Tariff (Articles of Iron or Steel).

Exemptions & Remedies

There are a number of exemptions to the Steel & Aluminum Surtax and other potential remedies that may lessen the impact of its effects on businesses. We have previously written about Canada’s tariff remission process as one such option here.

Assistance from experienced International Trade counsel will be useful for any businesses seeking to understand and take advantage of any exemptions or remedies offering relief from the Steel & Aluminum Surtax.

Takeaways

Canada’s Steel & Aluminum Surtax stands to cause significant financial fallout for businesses selling targeted US steel and aluminum products, but there are exemptions and other remedies available to mitigate such fallout. Assistance from experienced International Trade counsel will be useful for maximizing the chances of success for any businesses seeking to take advantage of exemptions and other remedies offering relief from Canada’s retaliatory tariffs.

For help with the Steel & Aluminum Surtax, please click here.

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