Steel tariffs in Canada: what the surtaxes mean for your next steel bid
Steel tariffs between Canada and the US have changed several times this year, most recently in September. For a fabricator, the risk is simple. You price a bid on one steel number and buy the steel on another. You can't control the tariff. You can control your bid terms, the origin information you collect, and how fast you re-price. For some Canadian fabricated steel going into the US, combined Section 232 and Section 338 duties can now reach 100%, depending on classification and steel origin.
Steel tariffs in Canada come from two directions. Canada charges surtaxes on steel coming in, including steel from the US. The US charges tariffs on Canadian steel going south. Both sides have changed the rules several times since March 2025.
I've had deals pushed this year because of it. One owner told me they wanted to go with us, but things were changing so much with tariffs that he wanted to talk again in a couple of months. I told him no worries. I wasn't going to push him.
He's not the only one. I'm hearing it from shops in Canada and from US shops near the border.
I get it. But a tariff is a pricing problem, and pricing problems land on the estimator's desk.
So here's what the tariffs actually do to a steel bid, and what you can control.
Steel tariffs in Canada, in force as of October 2026
This is what's in place as of October 6, 2026. It covers Canada's surtaxes on steel coming in and the US tariffs on steel going south. Every row links to the government source. These rules have been moving fast, so check the source and have your customs broker confirm the classification before you rely on a rate.
| Measure | Headline rate | Applies to | In force since | Source |
|---|---|---|---|---|
| Canadian surtax on US steel and aluminum (United States Surtax Order, Steel and Aluminum 2025) | 25%, or 50% on Schedules 1.1 and 2.1 | Listed US steel and aluminum. The 50% schedule includes U, I and H sections, angles, heavy plate and structures (7308) | March 13, 2025; 50% from September 8, 2026 | Finance Canada; September 8 product list; CBSA Notice 25-11; SOR/2025-95 |
| Steel tariff rate quota (Order Imposing a Surtax on the Importation of Certain Steel Goods) | 50% above the quota | Non-CUSMA steel. Quota is 20% of 2024 volumes without a free trade agreement, 75% with one | June 27, 2025; current levels since December 26, 2025 | Finance Canada; CBSA Notice 25-24; SOR/2026-119 |
| Steel Derivative Goods Surtax Order | 25% of full value | Steel derivative goods from any country, including structures (7308) and cold-formed shapes (7216.91). A higher-priority Canadian steel surtax can apply instead | December 26, 2025 | Finance Canada; CBSA Notice 25-33; SOR/2025-267 |
| Surtax on Chinese steel | 25% | Certain Chinese steel and aluminum, and non-US goods with steel melted and poured in China | October 22, 2024; July 31, 2025 | Finance Canada |
| US Section 232 tariff | 50% of full value; 10% if at least 85% of the steel was melted and poured in the US | Canadian steel entering the US, including rolled shapes (7216) and fabricated structures, columns and beams (7308) | April 6, 2026; 85% rule from June 8, 2026 | Proclamations 11021 and 11032 |
| US Section 338 tariff | 50%, on top of Section 232 | Listed Canadian goods, including steel columns, beams, girders and structures under 7308.90 | August 22, 2026; steel added September 15, 2026 | Proclamation 11065 |
A few things the table doesn't show.
Canada only charges one of these steel surtaxes per product. They don't stack. Finance Canada applies them in order: the quota surtax first, then the US, China or China melt-and-pour surtax, then the derivative surtax.
There's some relief too, through drawback, remission and special tariff treatment in certain cases. Finance Canada lists the options on its tariff relief page for goods from the US.
The US side works differently. Its tariffs do stack. Under Proclamation 11065, a Canadian product on the Section 338 list pays that 50% on top of Section 232. Fabricated columns, beams, girders and structures under 7308.90.30, 7308.90.60 and 7308.90.95 are on that list now. Rolled shapes aren't. That means the combined duty can reach 100%.
But 100% is not automatic on every shipment. Section 232 has a lower rate for qualifying products made with enough US-origin steel. Classification, customs value and where the steel was melted and poured all matter.
Where it hits a fabricator's bid
A surtax is just a line in a regulation until it shows up in your material number. It gets there four ways.
First, steel you buy from US mills. On September 8, the Canadian surtax on US wide-flange went from 25% to 50%. That's because U, I and H sections moved onto Canada's 50% schedule. That higher landed cost can show up in your service centre's quote on US-made shapes. It also puts upward pressure on domestic pricing. If you're in Western Canada and a meaningful share of your shapes comes up from US mills, this is the one to watch.
Second, steel from outside North America. Steel from a country with no free trade deal with Canada pays a 50% surtax once it's over the quota. And the quota is small. It's 20% of what came in during 2024. Countries outside CUSMA that do have a trade deal with Canada get 75%. So the cheap overseas option got a lot narrower. Fabricated steel from overseas can land on the 25% derivative surtax. But Canada checks the higher-priority measures first. If the goods fall under the quota surtax, or contain steel melted and poured in China, that measure applies instead.
Third, fabricated steel you ship to US jobs. If you're a Canadian shop bidding a US project, Section 232 takes 50% of the full value of your fabricated columns, beams and structures. The rate drops to 10% if at least 85% of the steel by weight was melted and poured in the US. That's from Proclamation 11021, with the 85% threshold set in Proclamation 11032.
Since September 15, columns, beams, girders and structures under 7308.90 also pay the 50% Section 338 duty on top. So the combined US duty can reach 100% of the value. It depends on how the goods are classified and where the steel came from. Get the classification and melt-and-pour information sorted before you lock the bid.
It runs the other way too. Covered fabricated structural steel coming from the US into Canada is now on Canada's 50% counter-tariff list.
Fourth, time. The rules have changed repeatedly since March 2025, including major changes in September. Say you hold a bid open for 30 or 60 days. You can price it on one rate and buy the steel on another. Unless your bid says otherwise, you eat the difference.
A simple example of why origin matters
Say a Canadian fabricator ships $100,000 of steel into the US. Here's how the duty can work out.
| $100,000 shipped to a US job | Section 232 | Section 338 | Total duty |
|---|---|---|---|
| Fabricated columns and beams (7308.90), non-US steel | $50,000 | $50,000 | $100,000 |
| Same columns and beams, at least 85% US-melted steel | $10,000 | $50,000 | $60,000 |
| Rolled shapes (7216), non-US steel | $50,000 | not on the list | $50,000 |
The Section 338 duty is there either way. What moves is the Section 232 portion, and that depends on where the steel was melted and poured.
That's why "where did the steel come from?" is no longer just a purchasing question. It can change the economics of the bid.
This is a simplified example, not customs advice. Your broker should confirm the HTSUS classification, customs value and rate for the actual shipment.
How to protect the bid
You can't set the rate. But you decide what your bid says about it.
Quick note first. This isn't legal or customs advice. Have your lawyer read any clause before it goes into a contract. And let your customs broker classify the goods, because the classification decides the rate.
- Shorten how long your material price holds. Hold labor for the full bid period. Hold material for less, or tie it to the date on the mill or service-centre quote.
- Add a tariff and escalation clause. Say what tariff or duty assumption you priced at. Say what happens if it changes before the PO or the material purchase. A material escalation clause written for mill price swings might not cover a new duty. So name tariffs and duties directly.
- Get origin and melt-and-pour information on the material quote. Different measures look at different things. Some care where the steel was made. Some care where it was melted and poured. Get that information before your number is final, especially on cross-border work. That part belongs to the estimate. Here's how the takeoff and the estimate differ.
- Carry the tariff as its own line or allowance when the bid structure lets you. It's easier to explain to a GC. It's also easier to update than a duty buried inside a per-ton number.
- Re-price the same day a rate changes. Treat it like an addendum. Every open bid needs a new material assumption before the GC asks for one.
Why estimating speed matters more when tariffs move
Here's the objection I hear: "I don't want to be paying for software every month while my steel is sitting at the border."
It's fair. Software looks like an easy place to save.
But the estimate is where your margin gets set. When material prices or duties move, every open bid using the old assumption needs to be checked. If your takeoff, pricing and bid files live in different places, that's another manual handoff and another chance to miss something.
That's what we built Ferra for. You set material prices per ton, by material, for each project. You can set defaults for your whole company too. Change the rate and the estimate updates without re-running the takeoff. A tariff doesn't change how many beams are on the drawings, so the quantities stay put.
Rapid Estimate also gives you a conceptual price before the full takeoff. That helps when you're deciding whether a job is still worth bidding at today's rate.
If you're comparing construction estimating software in Canada on cost, here's how steel estimating software is priced. If you're weighing a takeoff service instead, here's what that costs.
Software doesn't lower a tariff. It shortens the time between a rate change and a correct bid. In a year like this one, that matters.
Ferra and Canadian steel fabricators
We work with fabricators and erectors in Canada and the US. I'm based in Montreal.
The software reads French-language drawing sets from Québec, and it handles metric all the way through the takeoff. The details are in the September release notes.
On pricing, we charge Canadian shops in Canadian dollars. It's about the same number a US shop pays in US dollars. I'm not taking the US price and converting it up. You get a custom quote after a demo.
More about us on the about page.
FAQs
Does Canada have tariffs on US steel?
Yes. Since March 13, 2025, Canada has charged a 25% surtax on listed US steel and aluminum. On September 8, 2026, some of those goods moved to 50%, including structural shapes and fabricated structures. Only one Canadian steel surtax applies per product. Finance Canada has the current rules.
What is the steel derivative goods surtax?
It's a 25% surtax on the full value of certain steel derivative products from any country. It started December 26, 2025. The list includes structures, parts of structures and cold-formed shapes. If the same product is caught by a higher-priority Canadian steel surtax, Canada applies that one instead. The steel surtaxes don't stack with each other.
Do US tariffs apply to fabricated steel from Canada?
Yes. Since April 6, 2026, Section 232 charges 50% of the full value of rolled shapes and fabricated structures, columns and beams. It drops to 10% if at least 85% of the steel was melted and poured in the US. Since September 15, 2026, columns, beams, girders and structures under 7308.90 also pay a 50% Section 338 duty on top. So the combined duty can reach 100%. Your broker should confirm the classification and rate on the actual product.
Can Section 232 and Section 338 tariffs stack?
Yes, for the Canadian goods on the Section 338 list. Since September 15, 2026, Proclamation 11065 charges the 50% Section 338 duty on top of Section 232. On fabricated columns, beams and structures under 7308.90, the total can reach 100% of the value. It's 60% if at least 85% of the steel was melted and poured in the US.
How should a steel fabricator handle tariffs in a bid?
Hold your material price for less time than labor. Add a tariff and escalation clause that states the assumptions you priced at. Get origin and melt-and-pour information on material quotes. Show tariffs as a separate line or allowance where you can. And re-price every open bid the day a rate changes.
Is steel estimating software worth it when tariffs squeeze margins?
Software won't lower a tariff. What it changes is how quickly you can update an open bid when the material assumption changes. When margins are thin, stale pricing is the problem. The faster you get every live bid onto the new number, the less exposure you carry.
Does Ferra price Canadian customers in Canadian dollars?
Yes. Canadian shops pay in Canadian dollars, at about the same number a US shop pays in US dollars. You get a custom quote after a demo. Bring a set you're bidding now, and we'll show you the workflow on your own job.
Bring a set you're bidding now to a demo. We'll change the steel rate while you watch the number move.
You'll leave with a quote in Canadian dollars.
