Canadian Steel Firms Settle for $19 Million Over Tariff Evasion

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Two Canadian steel companies have agreed to a $19 million settlement with the U.S. Department of Justice for failing to pay proper duties on imported steel, raising significant implications for the industry.

In a significant development for the steel industry, the U.S. Department of Justice has announced that two Canadian steel companies, Farjess Inc. and Royal Canadian Steel Inc., have come to a settlement agreeing to pay $19 million. This resolution addresses allegations that the companies knowingly evaded duties on flat-rolled steel products imported from Europe and Asia. The inquiry reveals that from May 2019 to January 2025, these companies, along with their part-owner and president, Feroz Jessani, misrepresented the origin of the steel, falsely claiming it was produced in Canada or the United States. In reality, the steel was sourced from countries such as China, Indonesia, Italy, Turkey, and Vietnam. During a significant portion of this timeframe, steel imports that complied with the Canada-U.S.-Mexico Agreement (CUSMA) were exempt from duties. However, this changed when U.S. President Donald Trump imposed a 25 percent tariff on steel imports in February 2025, which was subsequently raised to 50 percent. U.S. Assistant Attorney General Brett A. Shumate stated that the Justice Department is committed to pursuing those who fraudulently evade duties on imported steel products. This case underscores the ongoing scrutiny of trade practices in the steel sector and the importance of adhering to tariff regulations as the U.S. continues to enforce stringent import duties.

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