Preparing Your Business for New U.S. Steel Tariff Compliance

Toronto, ON – June 24, 2026

The recent announcement by the U.S. Department of Commerce regarding Section 232 steel tariffs marks another significant shift for Canadian steel producers, manufacturers, processors, and fabricators that export to the United States.

While the policy creates an opportunity for some companies to reduce tariffs from 50% to 25%, it also introduces extensive compliance obligations and strategic business decisions that every exporter should begin evaluating today.

How Your Business May Be Impacted

Companies exporting steel products into the U.S. will face several new challenges, including:

• Increased documentation and compliance requirements for every shipment. • Greater customs scrutiny and audit risk.
• New traceability requirements proving where steel is melted, poured, processed, and manufactured.
• Higher administrative costs associated with maintaining detailed production, accounting, and inventory records.
• Pressure to evaluate whether expanding manufacturing capacity in the United States is financially viable.
• Increased competition from companies that qualify for reduced tariff treatment.

Even businesses that do not plan to expand into the U.S. will likely experience increased customer requests for supply chain transparency and proof of origin.

New Measures Companies Need to Be Aware Of

To qualify for reduced Section 232 tariffs, manufacturers must demonstrate:

• A committed investment in new or expanded U.S. steel production capacity.
• Binding capital investment and construction agreements.
• Clearly defined project milestones.
• Ongoing progress reporting to the U.S. Department of Commerce.
• End-to-end traceability of production and shipments.
• Accounting records that fully support customs declarations.
• Continuous compliance to retain eligibility for the reduced tariff.

Failure to maintain proper documentation could result in the loss of preferential tariff treatment and retroactive payment of the higher tariff.

How Companies Can Prepare

Businesses should begin taking proactive steps by:

• Reviewing current customs compliance procedures.
• Strengthening ERP, inventory, and production traceability systems.
• Conducting internal customs and trade compliance audits.
• Developing comprehensive documentation policies.
• Evaluating opportunities to diversify export markets.
• Investing in automation and advanced manufacturing technologies to offset rising costs.
• Reviewing supply chains for opportunities to source more materials within Canada and North America.

Government Programs Available to Help

There are several federal and provincial programs designed specifically to assist companies affected by U.S. tariffs.

Ontario Together Trade Fund (OTTF)

The Province of Ontario provides grants and interest-free loans to help companies:

• Expand manufacturing capacity
• Invest in automation and advanced equipment
• Strengthen Ontario supply chains
• Reshore production
• Diversify into new domestic and international markets
• Create and retain jobs

Funding can reach up to $5 million for eligible projects, with exceptional projects potentially receiving higher levels of support.

Protect Ontario Financing Program

Ontario also offers working capital support for businesses affected by Section 232 tariffs, helping companies manage payroll, lease payments, utilities, and other operating expenses during periods of trade disruption.

Federal Support

The Government of Canada has introduced additional measures, including:

• A new $1 billion Business Development Bank of Canada (BDC) financing program for steel, aluminum, and copper manufacturers affected by U.S. tariffs.
• An additional $500 million through the Regional Tariff Response Initiative to help businesses improve productivity, diversify markets, and strengthen supply chains.

How GTA Strategies Can Help

Navigating today’s evolving trade environment requires more than simply understanding tariffs—it requires a strategic approach to funding, compliance, and long-term growth. Our goal is to help manufacturers remain competitive, strengthen operations, and leverage every available government incentive during this period of economic uncertainty.

If your organization is assessing expansion plans, modernization projects, or funding opportunities, we’d be pleased to discuss how GTA Strategies can help position your business for success.