Canada has announced a new round of restrictions affecting steel and steel-related imports. These measures, which took effect in late December 2025, significantly change how certain steel products and derivative goods are treated at the border.
While these rules are primarily trade-related, they may have real implications for businesses operating in Canada, including manufacturers, construction companies, energy projects, and U.S. or international companies with Canadian operations.
What Has Changed?
Canada has implemented multiple regulatory changes that collectively:
- Reduce the volume of steel imports allowed under existing tariff-rate quotas
- Introduce a 25% surtax on many steel derivative and construction-related goods
- Narrow or eliminate certain remission programs that previously reduced duties
These changes apply broadly and are not limited to a single country of origin.
Reduced Steel Import Quotas
Canada has lowered the amount of steel that can enter the country under reduced-tariff quotas. Once those quotas are reached, higher tariffs apply.
For businesses, this means:
- Increased costs for imported steel
- Less predictability in supply chains
- Potential pricing and contract risks
Importantly, there are no new transitional exemptions for goods already under contract but not yet imported.
New 25% Surtax on Steel Derivative Goods
In addition to primary steel products, Canada has imposed a 25% surtax on a wide range of steel derivative and construction-related goods, including items used in infrastructure, energy, manufacturing, and commercial projects.
The surtax applies to the full value of the imported product, not just the steel content, which can significantly increase landed costs.
Limited Exemptions and Temporary Relief
Certain limited exemptions remain in place, including:
- Goods already in transit at the time the measures took effect
- Some products used in specific sectors such as aerospace, public health, and national security
- Temporary relief for certain U.S.-origin goods tied to vehicle and aircraft manufacturing
Many broader remission programs, however, are scheduled to expire in early 2026.
Why This Matters for Employers and Cross-Border Businesses
These changes may affect:
- Construction and infrastructure projects
- Manufacturing operations using steel inputs
- Energy and utility developments
- Companies expanding into or operating in Canada
- U.S. and international firms transferring staff or equipment across borders
Higher costs, supply delays, and contract disruptions can indirectly impact workforce planning, project timelines, and cross-border mobility strategies.
Impact on Immigration and Workforce Planning
Although these measures are not immigration rules, they can intersect with immigration planning, especially for businesses that:
- Are opening or expanding Canadian operations
- Are transferring executives, managers, or specialized workers to Canada
- Depend on timely completion of construction or manufacturing projects
- Rely on cross-border supply chains
Delays or cost overruns may affect hiring timelines, work permit planning, and project-based immigration strategies.
Steps Businesses Should Consider
Companies affected by these changes may wish to:
- Review current and upcoming import contracts
- Assess whether goods are subject to the new surtax
- Confirm whether any limited exemptions apply
- Adjust project timelines and budgets where necessary
- Coordinate trade, legal, and immigration planning early
Proactive planning can help reduce unexpected disruption.
How NPZ Law Group Can Help
NPZ Law Group advises businesses operating across borders on the intersection of immigration, business expansion, and workforce mobility. While trade compliance may require specialized customs advice, immigration planning often runs in parallel with major business and operational changes.
We assist clients with:
- Canadian business expansion planning
- Cross-border employee transfers
- Work permits for executives, managers, and specialized workers
- Immigration strategy aligned with project timelines
- Risk planning during regulatory and policy shifts
If your business is navigating changes in Canada that affect operations, staffing, or expansion plans, coordinated legal guidance can help avoid costly delays.
Final Takeaway
Canada’s new steel import restrictions reflect broader economic and policy priorities, but they also carry practical consequences for businesses operating in or expanding into Canada. Understanding how these changes affect supply chains, costs, and timelines is essential—especially when immigration and workforce planning are involved.
Contact Information
If you or your family members have any questions about how immigration and nationality laws in the United States may affect you, or if you want to access additional information about immigration and nationality laws in the United States or Canada, please do not hesitate to contact the immigration and nationality lawyers at NPZ Law Group. You can reach us by emailing info@visaserve.com or by calling us at 201-670-0006 extension 104. We also invite you to visit our website at www.visaserve.com for more information