Canada removes many U.S. surtaxes

Summary#

This Order Amending and Repealing Certain Orders Made Under the Customs Tariff (United States Surtax) (SOR/2025-181) removes many of Canada’s 25% surtaxes on U.S. imports and makes some technical fixes. The main changes take effect on September 1, 2025, with some parts treated as having come into force earlier and allowing importers to seek refunds.

What it does#

• Removes the surtax list in the United States Surtax Order (2025-1), which covered about $30.3 billion in annual U.S. imports.
• Removes non-steel and non-aluminum goods listed under the United States Surtax Order (Steel and Aluminum 2025) (about $14.4 billion in annual imports), while keeping steel and aluminum counter-tariffs in place (previously covering about $15.6 billion).
• Changes the United States Surtax Order (Motor Vehicles 2025) so surtaxes do not apply to heavy electric trucks over five tonnes and to vintage vehicles.
• Makes technical clarifications about how surtaxes apply to goods recorded under Chapters 98 and 99 of the tariff schedule.
• Applies most of these changes retroactively, so importers who already paid surtaxes can apply to the Canada Border Services Agency (CBSA) for refunds.
• Sets the formal coming-into-force rules: main date September 1, 2025, with some parts deemed to have come into force on March 4, 2025, March 13, 2025, or April 9, 2025 (depending on the specific surtax order being amended).

Who's affected#

• Importers and distributors of U.S. consumer and household goods who had faced the 25% surtax.
• Retailers and Canadians who buy those imported goods (they may face lower cost pressure going forward).
• Businesses that use temporary steel containers (the Order exempts some reusable steel containers from surtax when temporarily imported).
• Automotive importers affected by the motor-vehicle surtax scope (notably those dealing with heavy electric trucks and vintage vehicles).
• The CBSA, which will handle refunds and publish guidance on the changes.
• Broader supply chains and manufacturers that trade with the United States through CUSMA-compliant channels.

Why it matters#

• It eases cost pressure on many Canadian importers and consumers by removing surtaxes on a large share of U.S. goods (about $44.7 billion in annual imports when combined).
• It reasserts the role of CUSMA in keeping most Canada–U.S. trade duty free, which helps protect integrated North American supply chains.
• The retroactive refunds mean some importers who already paid surtaxes can recover those costs through the CBSA.
• Canada keeps counter-tariffs on steel, aluminum and some vehicles, so some industries remain protected or exposed depending on the product — the Order narrows the surtax scope rather than ending all countermeasures.
• The changes are mostly technical and aimed at limiting unintended impacts on manufacturing and temporary movements of goods, not a full rollback of all Canada’s trade responses to U.S. tariffs.