The U.S. Department of Justice has announced that two Canadian steel companies, Farjess Inc. and Royal Canadian Steel Inc. will pay $19 million to settle claims that they avoided paying the correct import duties on steel products.

According to U.S. authorities, between May 2019 and January 2025, the companies and their president, Feroz Jessani, falsely labeled steel imported from countries such as China, Indonesia, Italy, Turkey, and Vietnam as being made in Canada or the United States.

At the time, steel imports that qualified under the Canada-U.S.-Mexico trade agreement were exempt from certain duties, which allegedly helped the companies avoid additional costs.

In February 2025, U.S. President Donald Trump introduced a 25% tariff on steel imports, which was later increased to 50%.

U.S. Assistant Attorney General Brett A. Shumate stated that the Justice Department will take strict action against companies that try to avoid paying required duties on imported steel products.