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Origin and trade agreements

Canada's counter-tariffs on US goods

Canada's surtaxes on US-origin goods from March 2025 to now: what was imposed, what was repealed, the 15%, 25% and 50% lists in force since 8 September 2026.

Updated · 11 official sources

On 30 October 2026, Canada charges surtaxes on US-origin goods under three orders: the United States Surtax Order (2026), with rates of 15%, 25% and 50% on about CA$27.6 billion of goods since 8 September 2026, the steel and aluminum order at 25% or 50%, and the 25% motor vehicles order. The broad 2025 surtax on consumer goods was repealed on 1 September 2025.

Rules as of 30 October 2026.

What is in force on 30 October 2026?#

Canada's surtaxes on US goods in force on 30 October 2026 come from three Orders in Council made under section 53 of the Customs Tariff. Each charges a percentage of the value for duty on goods that originate in the United States, in addition to ordinary duty, and the CBSA collects it at import like any other duty.

Order In force since Rate Goods
United States Surtax Order (2026), SOR/2026-186 8 September 2026 15%, 25% or 50% About CA$27.6 billion of goods, from dairy to furniture
United States Surtax Order (Steel and Aluminum 2025), SOR/2025-95 13 March 2025 50% for most goods since 8 September 2026, 25% for some Steel and aluminum products
United States Surtax Order (Motor Vehicles 2025), SOR/2025-118 9 April 2025 25% Passenger vehicles and light trucks

Since 26 December 2025, Canada has also charged a separate global surtax on steel derivative goods such as wire, cable, chains and fasteners, whatever their origin. Where a good falls under both that order and the 2026 order, only the 2026 surtax applies.

Which goods does the 2026 order cover?#

The United States Surtax Order (2026) lists 349 Canadian tariff items in three schedules, matched roughly to the US tariff rate on the same Canadian goods. Canada made it in response to US tariffs of 50% on CA$27.6 billion of Canadian goods under Section 338 of the US Tariff Act of 1930, which took effect on 22 August 2026.

Schedule Surtax Examples of goods
Schedule 1, 21 items 15% Air conditioners and parts, forklifts and handling equipment, mowers and harvester parts, moulds, metal dies and press tools
Schedule 2, 172 items 25% Cheese, lumber, tissue and toilet paper, carpets, stoves, refrigerators, washers and dryers, power tools, cutlery, railway equipment
Schedule 3, 156 items 50% Milk powder and whey, honey, molasses, perfume and makeup, plywood, paper boxes and envelopes, cotton T-shirts and sweaters, furniture, lamps, smartphones, game consoles, sports equipment

The full list, which the Canada import guide puts in context, is in the order's schedules and on the Department of Finance's list of US products subject to counter-tariffs. Goods in Chapters 98 and 99 are exempt unless the tariff item is named in Schedule 4. Seafood was dropped from the draft list before the order was made. The US Section 338 guide covers the tariffs Canada is answering.

How does Canada decide a good is from the US?#

Under the 2026 order, a good originates in the United States if it is eligible to be marked as a US good under the CUSMA marking regulations. The surtax follows origin, not the route: US-origin goods shipped from a third country still pay it. Goods marked as from Puerto Rico, Guam or other US territories don't.

The excluded territories are Puerto Rico, Guam, the Northern Mariana Islands, American Samoa and the US Virgin Islands. For a consumer's personal imports, the CBSA treats goods marked as a good of the US as US-origin, even when they arrive from another country. Commercial importers prove origin with the commercial invoice or other documents carrying CUSMA's minimum data elements. A CUSMA claim doesn't help: originating goods pay the surtax too. The country of origin guide explains marking and origin rules.

How is the surtax calculated on a parcel?#

The surtax is the schedule rate times the value for duty, added to any duty. GST or HST is then charged on the value plus the surtax, even when the duty itself is remitted. The courier and postal remission orders don't remit the surtax, so it applies to shipments under the de minimis thresholds and must be accounted for.

Here's a worked example. An Ontario customer orders US-made cotton T-shirts for CA$100, shipped by courier from the US. The CA$150 courier limit remits the duty, but the T-shirts are on Schedule 3, so the surtax is CA$50. The value is over CA$40, so HST at 13% applies to CA$150: CA$19.50. The order pays CA$69.50 at the border. At CA$30, the same order pays only the CA$15 surtax, because GST and HST are remitted up to CA$40.

Importers declare the surtax on the Commercial Accounting Declaration with code 26186A for 15% goods, 26186B for 25% and 26186C for 50%, and enter the amount in the surtax field. Check each product's Canadian tariff item against the schedules before you quote a US-origin order; the HS code lookup finds the line.

What changed and when#

Canada's counter-tariffs started in March 2025, in response to US tariffs on Canadian goods, and most were repealed on 1 September 2025, when Canada noted that the US exempted most CUSMA-compliant Canadian goods from its tariffs. The steel, aluminum and vehicle surtaxes stayed, and new ones followed in September 2026.

  1. United States Surtax Order (2026)

    15%, 25% or 50% on 349 tariff items, about CA$27.6 billion of US-origin goods, matching US Section 338 tariffs. SOR/2026-186, P.C. 2026-785 (opens in a new tab)

  2. Steel and aluminum surtax raised to 50%

    Most steel and aluminum goods move from 25% to 50%; kitchen and household articles and a few other lines stay at 25%. SOR/2026-187, P.C. 2026-786 (opens in a new tab)

  3. Remission extended to the 2026 surtax

    Relief for health care, public safety, defence and some manufacturing and food packaging uses now covers the 2026 order. SOR/2026-186, sections 3 to 8 (opens in a new tab)

  4. US Section 338 tariffs take effect

    The US charges 50% on CA$27.6 billion of Canadian goods, which the 2026 order answers. SOR/2026-186, regulatory impact analysis (opens in a new tab)

  5. Steel Derivative Goods Surtax Order

    A global surtax on steel derivative goods such as wire, cable, chains and fasteners, whatever their origin. SOR/2026-186, regulatory impact analysis (opens in a new tab)

  6. 2025-1 order repealed, non-steel goods removed

    Ends the 25% surtax on CA$30 billion of goods and on CA$14.2 billion of other goods in the steel and aluminum order. SOR/2025-181, P.C. 2025-637 (opens in a new tab)

  7. United States Surtax Remission Order (2025)

    Relief for goods for health, public safety and national security, and some manufacturing uses. SOR/2025-122 (opens in a new tab)

  8. United States Surtax Order (Motor Vehicles 2025)

    25% on US vehicles not entitled to CUSMA treatment, and on the non-Canadian, non-Mexican content of those that are. SOR/2025-118 (opens in a new tab)

  9. United States Surtax Order (Steel and Aluminum 2025)

    25% on CA$15.6 billion of steel and aluminum and CA$14.2 billion of other goods. SOR/2025-95 (opens in a new tab)

  10. United States Surtax Order (2025-1)

    25% on CA$30 billion of goods: food, appliances, cosmetics, furniture, apparel, plastics, tires, pulp and paper. SOR/2025-66 (opens in a new tab)

  11. United States Surtax Order (2025)

    Made and then repealed before it came into force. SOR/2025-15 (opens in a new tab)

What exceptions and relief exist?#

The 2026 surtax doesn't apply to goods already in transit to Canada on 8 September 2026, with shipping documents to prove it, or to goods imported under an Import for Re-Export Program permit. Returning goods that were duty-paid in Canada and goods returned after repair are also outside it.

The United States Surtax Remission Order (2025) now covers the 2026 surtax for goods imported for health care, public safety or defence, and for some goods used in Canadian manufacturing, agriculture or food packaging. Other importers can apply to the Department of Finance under its remission framework. The surtax itself can't be appealed, but the CBSA's decisions on origin, classification and value can.

Common questions#

Did Canada remove its counter-tariffs on US goods?#

Canada repealed most of its 2025 surtaxes on 1 September 2025 but kept those on steel, aluminum and vehicles. On 8 September 2026 it added new surtaxes of 15%, 25% and 50% on about CA$27.6 billion of US goods.

Does the surtax apply to small parcels?#

Yes. The CBSA says the surtax applies to US-origin goods even when the courier or postal remission orders remit the duty and tax.

Does shipping from a Canadian or third-country warehouse avoid the surtax?#

No. The surtax follows the goods' US origin, so a US-made product pays it wherever it ships from.

Are CUSMA-originating goods exempt?#

No. The 2026 order applies to goods that originate in the US, and qualifying for CUSMA treatment doesn't change that.

Sources#