Canada Imposes 2026 US Surtax Order

Summary#

The United States Surtax Order (2026) imposes extra duties on a long list of goods that originate in the United States. It took effect on September 8, 2026 and applies surtaxes of 15%, 25% or 50% to different groups of tariff items, as Canada’s response to U.S. tariffs.

What it does#

• Imposes a surtax on U.S.-origin goods listed in Schedules 1, 2 and 3:
  • Schedule 1 items: 15% surtax.
  • Schedule 2 items: 25% surtax.
  • Schedule 3 items: 50% surtax.
• Treats a good as originating in the U.S. if it can be marked as a U.S. product under the Determination of Country of Origin for the Purpose of Marking Goods (CUSMA Countries) Regulations.
• Exemptions include:
  • goods already in transit to Canada when the Order entered into force;
  • certain personal/household imports by residents returning to Campobello Island, New Brunswick under strict conditions;
  • goods imported under an Import for Re-Export permit; and
  • goods classified under Chapters 98 or 99 of the tariff list except those shown in Schedule 4.
• Extends relief (remission) rules so some public-sector users and manufacturers can get surtaxes refunded or remitted under the United States Surtax Remission Order (2025).
• Amends earlier steel and aluminum surtax rules so many such goods now face a 50% rate (see the Order Amending the United States Surtax Order (Steel and Aluminum 2025)).
• The Canada Border Services Agency (CBSA) will administer the surtaxes and any remission claims. The CBSA aims for a 90-day standard to process refund requests, depending on complexity.

Who's affected#

• Importers, distributors and retailers bringing goods into Canada from the United States that match the tariff codes in the Schedules.
• Industries named in the regulatory statement as likely affected, including examples like dairy, appliances, agricultural equipment, pulp and paper, and electronics.
• Canadian businesses that use U.S. inputs: their costs may rise if they keep sourcing from the U.S.
• Consumers, because higher importer costs may be passed on as higher prices for some products.
• Importers who need remission (refund) may face administrative work to file claims; the government says small businesses will not face new compliance rules from the surtax itself, but claiming remission is an administrative step.
• The Government of Canada says the list was adjusted after stakeholder feedback (for example, seafood and fish products were removed from the counter‑tariff list).

If you need to know whether a specific product is on the list, the Order’s Schedules give the tariff classification codes. It’s not always obvious from a product description which code applies.

Why it matters#

• The surtaxes raise the cost of many U.S. imports, at least in the short term. That can push importers to find other suppliers or to buy more from Canadian manufacturers.
• The measure is meant to match the economic value of U.S. tariffs (Canada cites $27.6 billion of U.S. imports targeted by the counter‑tariffs). It is intended to increase pressure on the U.S. to remove the tariffs.
• For businesses, this could mean higher input costs, supply‑chain changes, or new opportunities for Canadian producers who can replace U.S. suppliers.
• For some public bodies and manufacturers, the existing remission process provides a route to relief, although that requires filing and processing of claims with the CBSA.