I. Core Policy Details and Operational Boundaries

1. Scope of Coverage and Imposition Rules
   • Product List: The policy explicitly covers 61 tariff lines, including steel wire, plates, fasteners, structural steel components, and wind turbine parts, as specified in the Schedule to the Customs Tariff. These products are used in construction, automotive, energy, machinery manufacturing, and other sectors.
   • Method of Imposition: The tariff is calculated based on the full declared value of the goods. It does not stack with existing specific steel surtaxes targeting China and the United States. The Canada Border Services Agency (CBSA) is responsible for declaration and collection.
   • Exclusions: Goods already subject to other steel surtax orders, casual goods, and goods under Chapter 98 of the tariff are not subject to this additional duty.
2. Exemption and Transition Period Rules

   Type	Specific Content	Applicable Period	Operational Requirements
   Temporary Exemption for Automobile Manufacturing	Relevant steel derivatives used in the manufacturing of motor vehicles and their chassis.	For imports before July 1, 2026.	Proof of end-use must be provided and verified by customs for duty exemption.
   Case-by-Case Exemption Applications	Goods that cannot be sourced domestically or have significant impacts.	No fixed period.	Submit a statement of need and proof of domestic supply shortage. The approval process takes approximately 2-4 weeks.
   Duty-Free for Goods in Transit	Goods shipped on the effective date (December 26).	Only on the effective date.	Declare duty-free with shipping documents such as bills of lading.
   Extension of Relief for U.S. Imports	U.S. steel for specific end-uses.	Until June 2026.	Subject to end-use criteria (e.g., automotive, medical), extending the scope of existing relief.

3. Decision-Making and Adjustment Mechanism: The policy is issued by an Order in Council. The tariff list can be dynamically adjusted quarterly based on market changes and industry feedback. After July 2026, an assessment will be conducted to determine if the measure should be made permanent.

II. Core Background for Imposing the Tariff

1. Urgent Need to Protect the Domestic Industry: Canada's steel industry is in a period of green transition, facing rising costs. Meanwhile, a flood of low-priced steel derivatives from global markets has reduced the capacity utilization rate of domestic enterprises to 72%, putting pressure on employment. The policy aims to create market space for domestic companies.
2. Increased Risk of Global Trade Diversion: The continuation of U.S. Section 232 steel tariffs has diverted steel from Southeast Asia, the Middle East, and other regions to Canada, creating "trade diversion" that squeezes domestic market share. Tariff measures are needed to counter this impact.
3. Trade Policy Coordination and Rule Alignment: This measure aligns with the adjustment of North American steel trade order and responds to trade defense measures by economies like the EU. It aims to maintain the competitiveness of the regional steel industry and prevent "low-standard dumping" from disrupting the domestic industrial ecosystem.

III. Specific Impacts on Different Stakeholders

IV. Recommendations for Enterprises (Targeting Foreign Trade and Steel Industries)

1. Strategies for Exporting Enterprises
   • List Review and Product Adjustment: Cross-reference the 61 tariff lines. Prioritize exporting products in exempted areas such as automobile manufacturing, and suspend exports of low-value-added products without exemptions to Canada.
   • Exemption Application and Documentation Preparation: For products that cannot be sourced domestically, prepare end-use certificates and supply gap materials in advance, and submit applications for case-by-case exemptions promptly.
   • Market and Supply Chain Optimization: Explore alternative markets such as Mexico and the EU, or establish factories in Canada's neighboring countries (e.g., the U.S., Mexico) to circumvent tariffs using free trade rules like CUSMA.
2. Strategies for Canadian Importing Enterprises
   • Inventory and Order Management: Stock up in advance during the exemption period to lock in prices. Negotiate with suppliers to share tariff costs and sign long-term agreements to stabilize supply.
   • Domestic Procurement Collaboration: Strengthen cooperation with Canadian domestic steel producers to promote customized supply and reduce import dependence.
3. Strategies for Trade Service Providers
   • Compliance Consulting Services: Assist enterprises in reviewing tariff lists and preparing exemption application materials to reduce declaration risks.
   • Logistics and Customs Clearance Optimization: Accelerate transportation and customs clearance processes for goods in transit to ensure they meet duty-free conditions.