The Government of Canada has announced selective tariff relief on certain categories of imported steel and aluminum from the United States and China, effective October 15, 2025.

This is not a broad tariff reduction, but a targeted measure aimed at supporting downstream sectors such as manufacturing, packaging, and processing.

Key Details

 • Canada’s Ministry of Finance amended the Order on Remission of Surtax 2024 to include specific exemptions for Chinese steel and aluminum products not produced domestically.

 • Imports from the U.S. will also see selective relief for materials used in health care, national security, manufacturing, agriculture, and food packaging.

 • The exemptions are described as exceptional and limited in scope, designed to stabilize supply chains in the downstream sector rather than to significantly reduce tariff revenues.

Why It Matters

This decision underscores that tariff policy remains a key instrument in Canada’s industrial and trade strategy. Despite broader globalization trends, countries continue to use tariffs and selective exemptions to protect or stimulate domestic production.

The move represents a shift toward precision policy: rather than lowering duties across the board, Canada is targeting support at specific supply-chain nodes and industries most affected by input costs.

For downstream sectors — where steel and aluminum serve as raw materials for processing and component manufacturing — this could help reduce costs and improve competitiveness, particularly in industries exposed to international price volatility.

Implications for Industry

 • Companies in packaging, machinery, and equipment manufacturing may benefit from lower import costs on specific U.S. and Chinese metal products.

 • However, the relief applies only to narrowly defined HS codes — firms will need to verify product classification and country of origin to qualify.

 • Most steel and aluminum imports will remain under existing tariff regimes.

 • Full regulatory details and the updated product list are expected to be published by the Ministry of Finance on November 5.

Bottom Line

Canada’s approach signals that tariff policy in the metals sector is evolving rather than disappearing. Instead of blanket measures, governments are introducing targeted relief focused on keeping key downstream industries competitive.

For manufacturers, traders, and processors, this means one thing: stay alert to classification changes and country-of-origin rules.

Support is available — but only for those who fall within the newly defined categories.

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Sources: Reuters, Investing.com, NAI500, AlCircle