U.S. Surtax Remission for Health and Manufacturing

Summary#

The United States Surtax Remission Order (2025): SOR/2025-122 lets certain Canadian public bodies, health-care providers, emergency services, national security organizations and some manufacturers avoid or get refunded surtaxes that Canada recently placed on many U.S. imports. The relief is temporary and only covers goods imported before October 16, 2025 (and claims must be made within two years of import).

What it does#

• Grants remission (relief or refund) of surtaxes charged under the U.S.-related surtax orders — including United States Surtax Order (2025-1), United States Surtax Order (Steel and Aluminum 2025) and United States Surtax Order (Motor Vehicles 2025) — for certain imports.
• Covers goods imported by or for:
  • government and clinical health research bodies,
  • organizations that make or store medical countermeasures (for example, medicines or medical devices),
  • public health offices,
  • ambulance and other emergency responders,
  • firefighting services,
  • law enforcement agencies,
  • correctional services,
  • Department of National Defence, Canadian Forces, and Canadian Security Intelligence Service.
• Covers goods imported for use in:
  • providing medically necessary health care (hospitals, clinics, labs, long-term care),
  • blood, tissue, organ-related services, or by public health authorities,
  • the manufacture, processing or packaging of goods in Canada (including food and beverages).
• Specifically lists certain items needed for public health and care, such as specialized infant formulas, nutrition and metabolic formulas, medical compression garments, and sterile pouches/films used in medical manufacturing.
• Sets conditions:
  • goods must be imported into Canada before October 16, 2025;
  • no other relief for the same surtax may already have been granted;
  • the importer must claim remission to the Minister of Public Safety and Emergency Preparedness within two years after importation.
• The Order came into force on registration (April 16, 2025).

Who's affected#

• Health sector: hospitals, clinics, medical labs, long-term care homes, and organizations that make or store medicines and medical devices.
• Public-safety and national-security bodies: police, ambulance services, firefighters, correctional services, Department of National Defence, Canadian Forces, and Canadian Security Intelligence Service.
• Manufacturers and packagers in Canada that rely on U.S. inputs for production or for food and beverage packaging.
• Importers of the specific health items listed in the Order (specialized formulas, certain medical garments and sterile packaging).
• Smaller importers are included; they can apply for remission using existing customs forms handled by the Canada Border Services Agency (CBSA).

Why it matters#

• It prevents immediate shortages and service interruptions for hospitals, emergency responders, national security operations and some manufacturers that rely on U.S. inputs and cannot quickly switch suppliers.
• The Order gives time for businesses and public bodies to adjust supply chains without bearing the full cost of the surtaxes. The relief is limited in time — goods must arrive before October 16, 2025 — and claims must be filed within two years of importation.
• This is an exception to Canada’s surtax policy: the surtaxes remain in place generally, but this Order creates narrow, temporary exemptions for essential public-health, safety and manufacturing needs.
• The government continues to encourage buying Canadian where possible (the "Choose Canada" message), and it will keep considering other remission requests on a case-by-case basis.