10% Surtax on Imported Canned Vegetables

Summary#

The government has registered the Certain Canned Vegetable Goods Surtax Order: SOR/2026-135, which puts a provisional 10% surtax on many imported canned vegetables. The surtax applies for up to 200 days starting on registration (June 19, 2026) while the Canadian International Trade Tribunal (CITT) completes an inquiry (report due September 9, 2026).

What it does#

• Imposes a provisional 10% surtax on the import value of a list of canned vegetables (for example: canned corn, peas, green beans, wax beans, mixes of peas and carrots, mixed vegetables, and common canned beans such as white, black, red, pinto, and chickpeas).
• Applies to canned vegetables regardless of how they are packaged, processed, seasoned, or labelled as organic.
• Exempts imports from certain free-trade partners (the United States, Mexico, Chile, Israel and other CIFTA beneficiaries) and a long list of developing countries (listed in the order).
• Does not apply to fresh, dried, or frozen vegetables; ready-to-eat meals where vegetables are not the main part; goods turned into purées, juices or pastes; items classified under Chapter 98 tariff numbers; casual goods; or goods already in transit into Canada when the order came into force.
• Will be administered by the Canada Border Services Agency (CBSA) while the CITT finishes its investigation. After the CITT report, the surtax will remain only on goods the Tribunal finds are causing or threatening serious injury.

Who's affected#

• Domestic canned-vegetable growers and processors (the government notes many are in Quebec, Ontario, British Columbia, and Alberta) — they are the intended beneficiaries.
• Importers and distributors of canned vegetables, including grocery wholesalers and retailers, who will face the surtax unless their goods are exempt.
• Consumers may see some price increases for the affected canned vegetables while the surtax is in place.
• Excluded exporters from the listed free-trade partners and developing countries are not affected by the surtax.

Why it matters#

• The government says imports of canned vegetables rose 22% from 2023 to 2025, reaching 62.8 million kilograms in 2025, and that this increase is harming Canadian producers. The surtax is a short-term measure meant to give the domestic industry breathing room while the CITT investigates.
• Provisional protection can help prevent permanent job losses or plant closures in the short term. But it also raises costs for importers and likely increases prices for some shoppers.
• The order is temporary (up to 200 days) and may be narrowed or removed after the CITT’s report (due September 9, 2026). The final outcome will depend on that Tribunal finding.