As announced in a Global Affairs Canada news release published on 23 July 2026, Canada has initiated public consultations concerning the administration of tariff-rate quotas (TRQs) for certain steel imports listed in item 82 of the Import Control List. The consultation period runs from 23 July 2026 until 19 August 2026.

In addition, the Minister of Finance and National Revenue has announced a provisional safeguard measure in the form of a 25% surtax on imports of certain wood cabinets and vanities, effective 31 July 2026. The surtax is implemented by the Certain Wood Cabinet and Vanity Goods Surtax Order (Wood Products Surtax Order), which will be published in an upcoming issue of the Canada Gazette, Part II as SOR/2026-169. This measure is intended to support the domestic industry while the Canadian International Trade Tribunal (Tribunal) determines whether final safeguard measures are warranted.

Consultations on steel imports

Canada implemented TRQs for certain steel goods listed in item 82 of the Import Control List on 27 June 2025 to address the risk of steel trade diversion into the Canadian market and risks associated with global excess capacity. The TRQs were subsequently amended on 1 August 2025, 26 December 2025, and 28 June 2026. The government indicated it would review this measure on an ongoing basis and that it would potentially introduce "an allocations-based approach for the administration of quota for certain product classes."¹ (For a brief summary of the steel TRQ regime, see EY Global Tax Alert, Canada extends steel tariff measures for an additional year, dated 14 July 2026.)

On 23 July 2026, Global Affairs Canada announced it would hold consultations to offer stakeholders the opportunity to provide input on how TRQs are administered. Comments are invited from all interested parties, including importers, manufacturers and processors, industry associations, international trading partners and labor unions.

Interested parties may provide comments through an online questionnaire, which is accessible at Background: Public consultations on the Government of Canada's administration of the tariff-rate quotas for certain steel goods listed in item 82 of the Import Control List. Participants should review the background information at that link before completing the questionnaire. This backgrounder summarizes the current administration and allocation methodologies applicable to the TRQ regime.

Stakeholders can also contact Consultations@international.gc.ca to receive a link to the questionnaire. Comments will be accepted until end of day on 19 August 2026.

Provisional surtax on wood cabinets and vanities

Effective 31 July 2026, imports of the following wood cabinets and vanities (and their subassemblies) that are listed in Schedule 1 of the Wood Products Surtax Order or that are classified under a tariff item of Chapter 99 of the List of Tariff Provisions and otherwise classifiable under a tariff item set out in Schedule 1 of the Wood Products Surtax Order are subject to a 25% surtax of their value for duty:²

• Cabinets and vanities, made in whole or in part of wood products and intended for permanent installation³
• Subassemblies of cabinets and vanities, made in whole or in part of wood products, including frames, boxes, doors, drawers, drawer components, back panels and end panels, and desks, shelves and tables that are attached to or incorporated in those cabinets or vanities

The surtax does not apply to certain goods, including:

• Goods originating in the US, Mexico, Chile, Israel or another Canada-Israel Free Trade Agreement beneficiary
• Goods originating in a developing country or territory set out in Schedule 2 of the Wood Products Surtax Order
• Goods that constitute "casual goods, as defined in section 2 of the Persons Authorized to Account for Casual Goods Regulations
• Goods classified under a tariff item of Chapter 98 of the List of Tariff Provisions, even if the goods are otherwise classifiable under a tariff item set out in Schedule 1 of the Wood Products Surtax Order
• Freestanding furniture (including office furniture and retail display fixtures) not designed for permanent installation in kitchens, bathrooms or closets
• The following goods, if they are imported separately from a wood cabinet or vanity:
• Certain aftermarket accessory items intended to be added to or installed in the interior of a cabinet or vanity
• Solid wood accessories, including corbels and rosettes, intended primarily for decoration and personalization
• Non-wood cabinet or vanity hardware components, such as metal hinges, handles and knobs
• Certain medicine cabinets that are intended to be wall-mounted and that are assembled and packaged for retail sale when they are imported
• Goods in transit to Canada on 31 July 2026

The surtax will remain in place for up to 200 days. As discussed below, the Tribunal is conducting a safeguard inquiry (GC-2026-001) to determine whether increased imports of certain wood products are causing, or threatening to cause, serious injury to Canadian wood manufacturers. The Tribunal must submit a report by 15 January 2027 containing its conclusions and recommendations for appropriate remedies, if necessary. In the event the Tribunal does not make a finding of serious injury (or threat thereof) in its report further to the Certain Wood Goods safeguard inquiry, the surtax would no longer apply to such goods. In other words, effective the day the Tribunal submits its report to the Governor in Council (GIC), the Wood Products Surtax Order should apply only to imports of goods, as identified in that report, that are causing or threatening to cause serious injury to domestic producers of like or directly competitive goods.

In accordance with Customs Notice 26-17, Certain Wood Cabinet and Vanity Goods Surtax Order, importers must declare imported goods as subject to a safeguard when completing a Commercial Accounting Declaration via the CARM Client Portal, Electronic Data Interchange, or Application Programming Interface and declare a safeguard code.

Backgrounder: Wood products safeguard inquiry

The World Trade Organization Agreement on Safeguards allows a country to apply safeguard measures to specific goods if imports of such goods have increased to the point where they are causing or threatening to cause serious injury to the domestic industry.

On 20 April 2026, the GIC made the Order Referring the Matter of the Importation of Certain Wood Goods to the Canadian International Trade Tribunal, P.C. 2026-340 (Referral Order), in accordance with paragraph 20(2)(a) of the Canadian International Trade Tribunal Act. This order requires the Tribunal to conduct an inquiry to determine whether increasing imports of certain wood products into Canada are a principal cause of serious injury or threat of serious injury to domestic producers of like or directly competitive goods. The period covered by the inquiry begins on 1 January 2023.

The Schedule to the Referral Order identifies three classes of goods for consideration:

• Solid and engineered wood cabinets and vanities
• Solid and engineered hardwood flooring
• Engineered-wood storage furniture

The Schedule includes a list of tariff classification numbers for all three classes of products, though these codes are for reference and not exhaustive.

Implications

Multinational enterprises that import steel products into Canada should monitor the ongoing consultations on the administration of TRQs, as potential changes to the allocation methodology could affect their operations.

Businesses importing wood cabinets, vanities or related subassemblies should assess whether their goods fall within the scope of the Wood Products Surtax Order or qualify for an exclusion.