- Introduction of Steel Surtax: On June 27, 2025, Canada implemented a 50% surtax on certain steel imports to counteract trade diversion risks, effective until June 26, 2026, with specific tariff rate quotas (TRQs) established for various steel products.
- Permit Requirement for Importers: Importers must obtain shipment-specific permits to qualify for TRQs and avoid the surtax, emphasizing the need for compliance with import volume monitoring and reporting regulations.
- Digital Services Tax Rescinded: Concurrently, Canada announced the repeal of the Digital Services Tax Act to facilitate trade negotiations with the US, halting tax collection and aiming for a broader trade agreement by July 21, 2025.
Source EY
