US-Canada Trade Tariffs: United States Surtax Order
As of March 4th, 2025, the Canadian Government issued a United States Surtax Order (2025-1) to establish a reciprocal 25% surtax on certain goods imported from the United States. These goods cover a total of $30 billion in annual imports and include a wide range of consumer and household products.
The surtax will apply to certain goods that originate in the United States (marked as made in, produced in or originating in the U.S.), imported for commercial and personal purposes, even when imported into Canada from a country other than the U.S.
The surtax is calculated in the amount of 25% of the value for duty (VFD) and is in addition to any other applicable duty charges. Verify if your shipment is subject to the surtax by checking the List of products subject to tariffs effective March 4, 2025, searchable by Customs Tariff code or Item description.
For personal (casual, non-commercial) shipments, goods are considered to originate in the U.S. if they are marked as such, or if the goods have no country of origin marking and thus there is no evidence that the product is from a country other than the U.S.
Exceptions to surtax:
- U.S. goods that are in transit to Canada before or on the day on which the surtax comes into force. This applies to goods bound for but not yet arrived in Canada, and under the control of a carrier. Importers must have documentation proof that the shipment was in transit before or on March 4th.
- Returning goods that are made in the U.S. and previously imported into Canada and therefore duty-paid; U.S.-made goods that are repaired or altered across the border.
For more details on application, exceptions and corrections, please see the full Customs Notice 25-10.
A second round of tariff countermeasures – against an additional $125 billion in imports – would be applied against the Unuted States if their Canadian goods tariff is not removed. The government is currently seeking feedback on the proposed tariff measures from individuals, businesses and industry stakeholders until March 25th. See more: Notice of Intent to Impose Countermeasures in Response to United States Tariffs on Canadian Goods.
