US Tariff on Steel from Canada

Canada is a major steel supplier to the United States, but steel imports face steep tariffs. The total effective rate is 60%: 50% Section 232 + 10% Section 122.

Section 232 steel tariffs were doubled from 25% to 50% in June 2025, significantly increasing costs. Canada had previously negotiated quota-based exemptions from Section 232, but these were revoked when tariffs were doubled. The current 50% rate applies to all Canadian steel imports.

The USMCA anti-stacking rule is important for Canadian steel: goods subject to USMCA-specific tariff provisions may be exempt from Section 122. In practice, this means some USMCA-qualifying steel products may face 50% Section 232 only (not 60%). However, the anti-stacking rule for steel is less clear-cut than for automobiles, and importers should consult with customs counsel.

Canada exports significant volumes of steel to the US, including: flat-rolled steel products, steel pipe and tube, structural steel, steel wire, and stainless steel. Key Canadian steel producers include Stelco, Algoma Steel, and ArcelorMittal Dofasco.

At 60%, Canadian steel is on par with most other countries (all face 50% Section 232 + 10% Section 122). Exceptions: the UK pays 25% Section 232 (Economic Prosperity Deal) for 35% total, Australia is exempt from Section 232 for 10% total, and South Korea has a quota arrangement.

For importers needing Canadian steel, strategies include: domestic sourcing to avoid all tariffs, requesting quota allocations (if available), using Foreign Trade Zones for inverted tariff situations, and exploring whether finished products face lower duties than raw steel inputs (tariff engineering).

The steel tariff situation is unlikely to change soon — Section 232 tariffs have survived multiple legal challenges and are considered constitutionally sound under national security authority.