Steel from Canada: 50% US Tariff (2026)

Canada is a major steel supplier to the United States, but steel imports face steep tariffs. Articles wholly of steel face 50% Section 232; the 10% Section 122 tariff does not stack on the steel content of a Section 232 article, so the effective rate on a wholly-steel article is 50%, not 60%.

Section 232 steel tariffs were doubled from 25% to 50% in June 2025, significantly increasing costs. As of the April 6, 2026 restructuring, steel is no longer a flat 50% on every import: articles wholly or primarily of steel face 50%, while derivative articles substantially made of steel face 25% — both now assessed on the full customs value of the article rather than only the metal content. Canada had previously negotiated quota-based exemptions from Section 232, but these were revoked when tariffs were doubled.

The Section 122 surcharge does not stack on Canadian steel articles for two independent reasons: (1) HTSUS heading 9903.03.01 (Section 122) does not apply to the steel/aluminum content of a Section 232 article, only to any non-metal content — a wholly-steel article has none; and (2) USMCA/CUSMA-qualifying goods were exempted from Section 122 indefinitely by the April 2, 2026 proclamation. This exemption is automatic, contingent only on valid rules-of-origin paperwork, not a discretionary judgment call.

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 50% on steel articles, Canadian steel is on par with most other countries (covered steel articles face 50% Section 232, with Section 122 not stacking on the metal content). Exceptions: the UK has a 25% Section 232 arrangement (Economic Prosperity Deal), 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.