10% Surtax on Certain Canned Vegetables

Summary#

The Government of Canada has registered the Certain Canned Vegetable Goods Surtax Order (SOR/2026-135), putting a provisional surtax of 10% on certain imported canned vegetables for 200 days. The surtax took effect when the order was registered on June 19, 2026, while the Canadian International Trade Tribunal (CITT) finishes an inquiry (report due September 9, 2026).

What it does#

• Imposes a provisional surtax of 10% of the value for duty on a list of canned vegetables (including canned corn, peas, green beans, wax beans, mixes of peas and carrots, mixed vegetables, white/black/red/pinto beans, and chickpeas).
• Applies for up to 200 days, starting on the day the order was registered (June 19, 2026).
• The surtax is charged in addition to any other duties or taxes owed at the border.
• The surtax applies regardless of how the canned vegetables are packaged or prepared (retail vs bulk, seasoned or not, organic or not, whole or mechanically prepared).
• Exemptions include:
  • Goods that originate in the United States, Mexico, Chile, Israel or other CIFTA beneficiaries.
  • Goods that originate in developing countries listed in Schedule 2 of the order.
  • Fresh, dried or frozen vegetables; certain ready-to-eat meals where vegetables are not the main component; products transformed into purées, powders, juices, spreads, dips or pastes.
  • Goods in transit to Canada on the day the order came into force.
  • Goods classified under Chapter 98 tariff provisions.
• While the surtax is in force, the CITT will complete its investigation. If the CITT later finds safeguard measures are warranted, the surtax will remain only for the goods it identifies. If the CITT finds no grounds, the surtax must end and refunds may be possible.

Who's affected#

• Importers and distributors of canned vegetables, such as wholesalers and grocery chains.
• Canadian consumers, who may see higher shelf prices for some canned vegetables.
• Domestic vegetable processors and growers — the government specifically cites producers in Quebec, Ontario, British Columbia and Alberta as the groups the surtax aims to protect.
• Importers sourcing from excluded countries or from developing countries on Schedule 2 will generally not be affected by this surtax.

Why it matters#

• The government says imports of these canned vegetables rose 22% from 2023 to 2025, reaching 62.8 million kilograms in 2025, and that the surge is threatening domestic producers.
• The surtax is meant to give Canada’s canned vegetable industry a short window of protection to avoid lasting harm (like lost contracts or closures) while the CITT completes its inquiry.
• There can be direct costs: Canada imported about $109 million in canned vegetables from sources covered by the measure in 2025, and the government estimates roughly $60 million of imports could be affected if the surtax stays in place for the full 200 days. That cost could be passed on to retailers and consumers.
• The measure is provisional — the final outcome depends on the CITT’s report (due September 9, 2026) and any subsequent government decisions.