---
title: Canada Introduces A 25% Surtax on Chinese-Based Steel and Aluminum Imports
description: In a new Surtax Order, Canada has announced a 25% duty on Chinese-based steel and aluminum imported for commercial purposes, effective July 31, 2025.
---

[Trade News](https://blog.coleintl.com/tradenews)

# [Canada Introduces A 25% Surtax on Chinese-Based Steel and Aluminum Imports](https://blog.coleintl.com/tradenews/canada-introduces-a-25-percent-surtax-on-chinese-based-steel-and-aluminum-imports)

 Written by [Cole Marketing](https://blog.coleintl.com/tradenews/author/cole-marketing) | Aug 1, 2025, 1:15:00 PM

**This surtax addresses the risks associated with global overcapacity and non-market policies and practices in the steel and aluminum industries.**

Starting July 31, 2025, Canada is imposing a 25% surtax on certain steel goods melted and poured in China, as well as on certain aluminum goods smelted and cast in China. 

This 25% duty applies to [Chinese-based steel and aluminum goods](https://www.cbsa-asfc.gc.ca/publications/cn-ad/cn25-28-eng.html) imported for commercial purposes, and is in accordance with the **Steel Goods and Aluminum Goods Surtax Order**.

A complete list of goods subject to this surtax is available in the [Schedule](https://orders-in-council.canada.ca/attachment.php) of the Order.

Canada had introduced its [China Surtax Order](https://blog.coleintl.com/tradenews/china-surtax-order-on-steel-and-aluminum-goes-into-effect) (2024) last October, which applies a 25% duty on steel and aluminum imports from China.

However, goods subject to the duties imposed in October are exempt from the surtax on Chinese-based steel and aluminum imports. 

## **Documentation requirements**

To demonstrate that the country of melt and pour (COM) for steel or the country of smelt and cast (CSC) for aluminum is not China, importers must have a commercial invoice, report, or certificate for proof.

The certificate or report can be in the form of a:

- Mill test certificate, mill test report or material test certificate, or material test certificate;
- Certificate of conformance, compliance, inspection, or analysis;
- Certified inspection report;
- Metallurgical test report; or
- Chemical analysis certificate.

Moreover, starting September 22, 2025, commercial invoices and reports will **no longer be accepted** to verify COM and CSC.

Proof of origin must also be provided for all imported goods upon request.

This may be in the form of a commercial invoice, a Canada Customs Invoice or any other documentation that indicates the country of origin.  

Note that the documentation must meet the requirements of any applicable obligations established under a free trade agreement or Canada's most-favoured-nation (MFN) or General Tariff treatment provisions.

## **How to calculate the surtax**

The surtax duty on Chinese-based steel and aluminum amounts to 25% of the **value for duty** (VFD) for the imported goods and is in addition to other duties and taxes, such as customs duties, anti-dumping and countervailing duties, and taxes.

Here are two examples demonstrating how to calculate duties.

### **Example 1**

If the value for duty is $1,000 and the imported goods have a most-favoured-nation duty rate of 0%, the calculation would be as follows (under a 25% duty rate per the Steel Goods and Aluminum Goods Surtax Order):

- - For the surtax: 
          - $1,000 (VFD) x 0.25 (surtax rate) = $250 (surtax payable)
    - For the customs duties and taxes: 
          - $1,000 (VFD) x 0 (% MFN duty) = $0 (customs duty)
          - $1,000 (VFD) + $250 (surtax payable) + $0 (customs duty) = $1,250 (value for tax)
          - $1,250 x 0.05 (% GST) = $62.50 (GST)

**Total payable:** $250 (surtax) + $0 (customs duty) + $62.50 (GST) = $312.50

### **Example 2**

If the value for duty is $1,000 and the imported goods have a most-favoured-nation duty rate of 5%, and are subject to anti-dumping duties of $34, the calculation would be as follows (under a 25% duty rate per the Steel Goods and Aluminum Goods Surtax Order):

- - For the surtax: 
          - $1,000 (VFD) x 0.25 (surtax rate) = $250 (surtax payable)
    - For the customs duties and taxes: 
          - $1,000 (VFD) x 0.05 (% MFN duty) = $50 (customs duty)
          - $1,000 (VFD) + $250 (surtax payable) + $50 (customs duty) + $34 (anti-dumping duties) = $1,334 (value for tax)
          - $1,334 x 0.05 (% GST) = $66.70 (GST)

**Total payable:** $250 (surtax) + $50 (customs duty) + $34 (anti-dumping duties) + $66.70 (GST) = $400.70

## **Exceptions to this surtax**

The surtax does not apply to Chinese-based steel and aluminum goods that:

- Are casual goods
- Are subject to the **China Surtax Order (2024)**
- Are in transit to Canada on July 31, 2025 (with proof)
- Were in transit to Canada before July 31, 2025 (with proof)
- Originate in the U.S., as per the regulations of the [CUSMA country of origin determination](https://laws-lois.justice.gc.ca/eng/regulations/SOR-94-23/)
- Have a cumulative value for duty that **does not exceed $5,000** (and accounted for under a single Commercial Accounting Declaration (CAD))
- Are classified under a tariff item of Chapter 98 of the Schedule to Canada's [Customs Tariff](https://laws-lois.justice.gc.ca/eng/acts/c-54.011/)

## **Next steps for steel and aluminum importers**

If you import steel and aluminum goods into Canada, we recommend the following next steps:

- Review the Schedule of the Steel Goods and Aluminum Goods Surtax Order to determine if your products are subject to the new duty
- Ensure you have valid documentation proving COM (for steel) or CSC (for aluminum)
- Consider revising your pricing strategies to account for the 25% surtax in addition to existing duties and taxes
- Consult your customs broker to confirm proper classification, ensure your documentation meets CBSA requirements, and avoid costly delays or penalties

## **How Cole International can help**

At Cole International, we provide [customs and compliance consulting](https://www.coleintl.com/services/trade-consulting/customs-compliance/) and [customs brokerage services](https://www.coleintl.com/canadian-customs-brokerage/) to help you navigate changing regulations and streamline the importing of goods into Canada.

**If you import Chinese-based steel and aluminum goods into Canada, please reach out to one of** [**our trade professionals**](https://www.coleintl.com/contact-us) **to discuss the impact of this surtax order on your business and how we can help.**

 

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