Canada has implemented a strategic, targeted approach to steel and aluminum tariff relief in 2025, exempting certain imports from retaliatory tariffs through a new order-in-council, effective October 15, 2024, with further details to be published in November.

These exemptions focus on products not produced domestically and aim to balance protecting Canadian industry with maintaining supply chain resilience amidst international trade tensions.

The relief prioritizes safeguarding critical supply chains for manufacturing and agriculture, recognizing their broader economic impact, and promotes diversification and strategic stockpiling to strengthen resilience.

Businesses are advised to prepare for complex compliance requirements, including detailed documentation and supply chain analysis, to navigate the evolving tariff landscape effectively.

The process involves submitting certificates of origin and manufacturing records, with applications for exceptional cases evaluated based on supply chain importance and domestic unavailability.

Canada’s nuanced approach serves as a model for middle powers, balancing economic security, diplomatic flexibility, and regional integration, potentially influencing global trade strategies.

Prime Minister Mark Carney is actively negotiating with U.S. President Donald Trump to lift tariffs on Canadian steel and aluminum, emphasizing ongoing talks and avoiding additional retaliatory measures.

Canadian steel producers, represented by the Canadian Steel Producers Association, criticized the exemptions, especially the two-month extension for U.S. imports and Chinese steel exemptions, arguing they undermine domestic industry and calling for higher tariffs on American steel to match U.S. tariffs.

Canadian manufacturers are adjusting through supplier diversification, inventory management, product redesigns, and renegotiating contracts to mitigate tariff impacts.

Finance Minister François-Philippe Champagne stated that the exemptions aim to protect downstream sectors and support Canadian workers by allowing manufacturers to source materials competitively without significantly reducing tariff revenue.

The exemptions are designed to have minimal impact on counter-tariff collection while ensuring essential products for industries like healthcare, food packaging, and agriculture remain accessible.

Canada’s government is navigating complex trade negotiations with the U.S. and China, seeking relief from tariffs on agricultural exports and supporting industries amidst tensions over unfair trade practices.

The Canadian tariff system, which includes surtax mechanisms and remission processes, has been amended with new guidelines effective October 15, 2025, and detailed publication scheduled for November.

Exemptions cover a broad range of uses, including food packaging, healthcare, and public safety, with specific allowances granted to companies for items like portable pizza ovens and commercial carpeting, as well as approvals for American products used in various sectors.

Canadian officials recently engaged with Chinese counterparts to discuss potential tariff relief on agricultural products, seeking to ease trade tensions and facilitate exports.

Tariff relief criteria differ for imports from the U.S. and China: U.S. support prioritizes sectors like healthcare and manufacturing, while Chinese imports must be non-domestically produced to qualify for exemptions.