U.S. Vehicle Surtax Remission 2026

Summary#

The United States Surtax Remission Order (Motor Vehicles 2026) renews a one-year program that lets eligible automakers import a fixed number of CUSMA‑compliant U.S. vehicles without Canada’s 25% counter‑tariff. The relief applies to vehicles imported between April 9, 2026 and April 8, 2027, but the list of eligible companies and the quantities allocated are confidential.

What it does#

• Extends the remission framework for an additional year under the United States Surtax Remission Order (Motor Vehicles 2026) so certain U.S.‑made, CUSMA‑compliant passenger vehicles and light trucks can enter Canada free of the 25% counter‑tariff.
• Grants remission only for the specific number of vehicles assigned to each importer in a confidential schedule.
• Sets conditions for remission, including that:
  • the vehicle is imported on or after April 9, 2026 and not later than April 8, 2027;
  • the vehicle is CUSMA‑compliant;
  • the importer files a claim for remission within two years of the import date;
  • the importer must provide information when requested to the Minister of Public Safety and Emergency Preparedness and the Minister of Industry about imports, sales, and Canadian manufacturing content;
  • companies that paused Canadian production for retooling must restart manufacturing as required; and
  • companies not manufacturing in Canada when the order starts must begin manufacturing as required.
• The Canada Border Services Agency (CBSA) will process remission claims and administer any refunds, with a target processing standard of 90‑day (depending on volume and complexity).
• The schedule naming eligible importers and quantities is withheld for confidentiality.

Who's affected#

• Automakers and importers whose business numbers appear in the confidential schedule — these are the companies eligible to claim the remission. Their identities and the number of vehicles they may import duty‑free are not published.
• Dealers and retailers who sell U.S.‑assembled, CUSMA‑compliant vehicles may see effects if their suppliers receive remission.
• Consumers could notice changes in vehicle availability and prices in the short term, depending on how much duty relief companies receive.
• The Canada Border Services Agency (CBSA) will handle claims and refunds; the Department of Finance was involved in making the order.
• It is unclear from the published text which specific companies and exact quantities are covered because that information is kept confidential.

Why it matters#

• This order reduces the immediate cost pressure created by reciprocal tariffs between Canada and the U.S. by allowing a limited volume of duty‑free imports for eligible manufacturers. That can help with vehicle availability and affordability in Canada.
• It is designed to encourage automakers to keep making vehicles and parts in Canada or to restart and expand Canadian production. The auto sector is a large employer and trading partner: Canada exported $44.4 billion and imported $35.6 billion in finished vehicles to/from the U.S. in 2024, and the industry supports over 125,000 direct and 425,000 indirect jobs.
• The measure is a temporary, targeted relief tied to conditions about maintaining investment and production in Canada. Because the list of beneficiaries and quantities is confidential, the broader market impact depends on how large those confidential allocations are.