Steel Derivative Goods Surtax extended, Canadian-origin goods exempted, and auto/aerospace phase-out deadline pushed to 2027

Plain-language summary · AI-assisted · not legal advice

Several changes have been made to the Steel Derivative Goods Surtax Order, which imposes a 25% surtax on imported steel derivative goods. A new interpretation clause clarifies that country of origin is determined under the CUSMA origin rules. Goods that originate in Canada are now explicitly exempt from the surtax. The temporary exemptions for steel derivative goods used in motor vehicle manufacturing and in aircraft or spacecraft have been extended by one year — the cut-off for those exemptions moves from July 1, 2026 to July 1, 2027. The list of other surtax orders that trigger an exemption (preventing double-surtaxing) has been expanded to include the United States Surtax Order (2026). Importers and manufacturers in the automotive, aerospace, and energy sectors should review their supply chains to confirm whether their goods now qualify for the Canadian-origin exemption or the extended manufacturing exemptions.

Who this affects: steel derivative goods importers · automotive parts and vehicle manufacturers · aerospace and aircraft manufacturers · wind energy project developers · customs brokers and trade compliance teams