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Canadian steel companies pay millions after U.S says they didn’t pay proper tariffs

The settlement includes a $3.61 million whistleblower award after the companies allegedly misrepresented steel origins to avoid U.S. duties.

  • On Wednesday, Farjess Inc. and Royal Canadian Steel Inc. agreed to pay $19 million to resolve Justice Department allegations they misrepresented steel origins to evade import duties.
  • From May 2019 through January 2025, the firms mislabeled steel from Europe and Asia as Canadian or American, exploiting a period when compliant imports faced no duties.
  • A whistleblower broker flagged the companies under the False Claims Act, earning $3.61 million for exposing the scheme that allowed firms to bypass standard import costs.
  • Assistant Attorney General Brett Shumate warned the Justice Department will "zealously pursue anyone who fraudulently evades the duties owed on steel products imported into this country."
  • President Donald Trump imposed 25 per cent tariffs in February 2025, later increasing to 50 per cent, creating strong incentives for importers to evade duties amid trade tensions.
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Two Canadian steel companies agreed to pay US$19 million in response to allegations that they deliberately failed to pay customs duties on flat-rolled steel manufactured in Europe and Asia, the U.S. Department of Justice announced on Wednesday.

·Montreal, Canada
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Winnipeg Free PressWinnipeg Free Press
+24 Reposted by 24 other sources
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Canadian steel companies pay millions after U.S says they didn't pay proper tariffs

WASHINGTON - The U.S. Department of Justice says two Canadian steel companies have agreed to pay $19 million to resolve allegations they knowingly failed to pay proper duties on flat-rolled steel manufactured in Europe and Asia.

·Winnipeg, Canada
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City News broke the news in Toronto, Canada on Wednesday, May 20, 2026.
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