U.</p><p>S. duties on Canadian steel exports to rise in 2026
Canada has maintained its position as the largest source of steel imports to the United States in 2025, despite the doubling of Section 232 steel tariffs to 50%.
Imports of flat and long carbon steel products of Canadian origin (excluding pipes) decreased by 32% year-on-year over a 12-month period, according to data published by the International Trade Association. This exceeded the total decrease in steel imports to the United States by 23%.
Last year, the U.
S. market received almost 3.3 million tons of Canadian steel, which allowed Canada to retain its status as a leading foreign supplier, accounting for 28% of total imports (see the graph in the image carousel above).
Laura Hodges, a member of the European Parliament and an analyst of the US steel market, said: "I keep hearing that steel imports to the United States have declined, especially from Canada. This is not the case, despite the 50% tariff. Steel imports declined last year and will continue to decline in 2026. However, the United States will continue to import steel because, despite recent investments in production facilities, some products are not produced domestically. The United States also remains an attractive market due to its size and relatively high steel prices."
However, imports to the United States from Canada are expected to decline further in 2026.
In March 2025, the United States reinstated Section 232. raising steel tariffs to a full 25% without any quotas, exemptions, or exceptional measures. Under the previous system, some countries paid a full 25 percent duty on steel imports, while others, including Canada, paid no duty. In July 2025, the steel tariff under section 232 was increased to 50%. As a result, tariffs on Canadian-made steel products increased from 0% to 50% in five months, dramatically changing the supply chain with financial implications for both buyers and sellers.
Contract sales may have mitigated the initial effects of the duties.
Tariffs on steel imports from the United States have reduced Canada's influence on the American steel market. The decrease was more significant in the second half of the year due to tariff increases and increased steel imports in the first three months of the year, before the initial full restoration of Section 232 tariffs. In the period from July to December, steel imports to the United States from Canada decreased by 44% year-on-year.
The structure of imports of flat and long products has also changed over the past year. Given Canada's close ties to the U.
S. automotive sector, imports of flat rolled products decreased less than imports of long products. In 2024, flat rolled products, including galvanized rolled products and other rolled products, accounted for 75% of imports from Canada. In 2025