Canada’s Surtax on U.S. Goods Takes Effect Sept. 8, 2026 (CBSA Guidance Available)

Published Aug. 26, 2026 | Updated Sept. 7, 2026

Key Points

• New Canadian counter-tariffs on $27.6B of U.S. goods, effective 12:01 a.m., Sept 8, 2026 – matches U.S.’s 50% tariff dollar for dollar.
• Rates: 15%, 25%, or 50%, depending on product, mirroring the U.S. rate on that good.
• Responds to U.S. Section 338 and Section 232 tariffs.
• Sectors: steel, dairy, appliances, ag equipment, pulp/paper, electronics, seafood, beauty/personal care, clothing, cooking appliances.
• Applies only to goods meeting CUSMA marking rules for U.S. origin.
• Non-CUSMA U.S. goods risk double exposure (MFN + countermeasure duty).
• Goods in transit on Sept 8 are exempt – keep shipment documentation.
• Existing counter-tariffs (e.g., autos) and remission orders stay in place.
• Existing remission (e.g., steel) is expected to extend to new tariffs, pending approval; new remission requests still accepted.
• Claim remission at entry, not via refund – refunds can take months.
• Government has published a detailed tariff-item list; check against the Customs Tariff Schedule, not just broad categories.
• New Order in Council: On September 4, 2026, the Government of Canada issued the United States Surtax Order (2026), establishing new 15%, 25%, and 50% surtaxes on specified U.S.-origin goods effective September 8.
• CBSA guidance issued Sept. 7: Customs Notice 26-23 confirms the new counter-tariff surtax takes effect Sept. 8, 2026, at rates of 15%, 25%, or 50% on certain U.S.-origin goods.

T​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​he Government of Canada has announced new counter-tariffs on selected goods imported from the United States in response to U.S. tariff measures affecting Canadian products. Effective September 8, 2026, at 12:01 a.m., Canada will impose tariffs of 15%, 25%, and 50% on specified U.S.-origin goods. The measures cover products targeted by U.S. Section 338 and Section 232 tariffs and affect approximately $27.6 billion in U.S. imports. Canadian importers may review the government’s list of products subject to the new counter-tariffs at the tariff-item level.

Latest Update: On September 7, 2026, the Canada Border Services Agency (CBSA) issued Customs Notice 26-23 confirming that the new United States Surtax Order (2026) takes effect September 8, 2026, at 12:01 a.m. The surtax applies to certain U.S.-origin goods at rates of 15%, 25%, or 50%, with the applicable rate determined by the tariff item. More on the CBSA guidance below.

CBSA Guidance on the U.S. Surtax Effective Sept. 8, 2026

Customs Notice 26-23 confirms that new surtax measures take effect September 8, 2026, on certain U.S.-origin goods imported into Canada. The surtax applies at rates of 15%, 25%, or 50% of the value for duty, depending on the applicable product and schedule.

Key Details From Customs Notice 26-23

• Effective date: September 8, 2026.
• Surtax rates: 15%, 25%, or 50% of the value for duty, depending on the applicable tariff item and schedule.
• U.S. origin: Applies to goods eligible to be marked as U.S. goods under Canada’s CUSMA country-of-origin marking rules.
• Excluded territories: Goods eligible to be marked as originating from Puerto Rico, Guam, the Northern Mariana Islands, American Samoa, or the U.S. Virgin Islands are excluded.
• Goods shipped through another country: The surtax can apply to U.S.-origin goods imported into Canada from another country.
• Chapters 98 and 99: Generally exempt unless the applicable Chapter 98 or 99 tariff item is specifically listed in Schedule 4, even if the otherwise applicable classification appears in Schedule 1, 2, or 3.
• Steel derivative goods: If both surtax orders apply, only the surtax under the United States Surtax Order (2026) applies.
• De minimis shipments: The surtax applies even when goods qualify for the de minimis thresholds under the Postal Imports Remission Order or Courier Imports Remission Order.
• Akwesasne residents: The surtax is remitted for eligible commercial and casual goods.
• Proof of origin: Required subject to applicable exceptions. Commercial proof may include a commercial invoice or other documentation containing the required CUSMA data elements.
• Duties Relief and Duty Drawback: Available for surtax paid or payable, subject to CUSMA requirements. For CUSMA U.S./Mexico-origin goods, the CUSMA limitations and “lesser of two duties” determination do not apply, so full relief may be available when the criteria are met.
• In-transit goods: U.S. goods already in transit to Canada when the surtax takes effect are exempt if the importer can prove they were in transit. For CBSA purposes, goods are considered in transit when they are bound for Canada but have not yet arrived and remain under the control of a carrier. Supporting documents may include a bill of lading, report of entry documents, or cargo control documents.
• Remission: Requests continue to be accepted under the U.S. Remission Framework for goods not already eligible under the United States Surtax Remission Order (2025).

Determining U.S. Origin

The surtax applies only to goods originating in the United States.

For this purpose, CBSA considers goods to originate in the U.S. when they are eligible to be marked as U.S. goods under the Determination of Country of Origin for the Purpose of Marking Goods (CUSMA Countries) Regulations.

The surtax does not apply to goods eligible to be marked as originating from Puerto Rico, Guam, the Northern Mariana Islands, American Samoa, or the U.S. Virgin Islands.

The origin rule can also apply when U.S.-origin goods enter Canada from another country.

Proof Of Origin

Importers must furnish proof of origin, subject to the exceptions under the Proof of Origin of Imported Goods Regulations.

For commercial goods, proof of origin may consist of a commercial invoice or other documentation containing the minimum data elements required under CUSMA.

For casual goods, CBSA considers goods to originate in the U.S. when they are marked as goods of the U.S. Casual goods imported from another country can also be considered U.S.-origin when they are marked as made in, produced in, or originating in the U.S.

How Importers Must Account for the New Surtax

Importers must declare the surtax on the Commercial Accounting Declaration (CAD) through the CARM Client Portal (CCP), EDI, or API.

• 15%: Schedule 1 — 26186A
• 25%: Schedule 2 — 26186B
• 50%: Schedule 3 — 26186C

The surtax amount must be entered in field 85 (“Surtax”). Importers using CARM self-declare must calculate and enter the amount themselves.

Commercial goods qualifying for an exception must be declared as non-subject to surtax. Goods subject to surtax that qualify for remission under the Postal Imports Remission Order or Courier Imports Remission Order must still be accounted for. CLVS shipments are also subject to the applicable accounting requirements, and casual goods are accounted for under CBSA procedures.

Surtax Calculation and GST

The surtax is calculated as 15%, 25%, or 50% of the value for duty (VFD) and applies in addition to other duties, including anti-dumping duties.

For a $150 VFD:

• At 25%, the surtax is $37.50. With 0% MFN duty, the value for tax is $187.50, GST is $9.38, and total surtax, customs duty, and GST is $46.88.
• At 50%, the surtax is $75. With 0% MFN duty, the value for tax is $225, GST is $11.25, and total surtax, customs duty, and GST is $86.25.
• With 5% MFN duty, $34 in anti-dumping duties, and a 25% surtax, the surtax is $37.50, customs duty is $7.50, the value for tax is $229, GST is $11.45, and total surtax, customs duty, anti-dumping duty, and GST is $90.45.

VFD must be determined under sections 47 to 55 of the Customs Act. GST is calculated on the value for tax, including the surtax, even when customs duties are remitted. GST does not apply to non-taxable importations.

Under the transaction value method, certain transportation, associated, and insurance costs arising after the point where goods begin their direct and uninterrupted journey to Canada are excluded from the transaction value. Certain Canadian customs brokerage fees included in the price paid or payable may also be deducted. Transportation cost estimates are not acceptable.

Additional Exceptions

The surtax does not apply in certain circumstances, including:

• Goods imported from the U.S. at a Campobello Island, New Brunswick, port of entry by qualifying residents returning after less than 24 hours with goods for personal or household use.
• Goods imported under an Import for Re-Export Program permit when all program conditions are met, including further processing in Canada and export within specified timelines.
• U.S.-made goods previously imported into Canada and duty-paid that are subsequently returned.
• Certain U.S.-made goods repaired or altered across the border, excluding vessels returned after foreign repair or alteration under tariff item 9971.00.00.
• Baggage and conveyances temporarily imported by non-residents under tariff item 9803.00.00, including certain personal-use goods.
• Eligible ships’ stores that are not diverted and meet the applicable requirements.
• Goods covered by applicable personal exemptions for qualifying individuals returning to Canada. Surtax can apply to goods outside the exemption or amounts exceeding it.

Corrections, Refunds and Verification

Corrections, adjustments, and requests for re-determination must follow the Customs Act and applicable CBSA procedures.

For commercial goods, incorrect surtax assessments can be corrected or adjusted through the CARM Client Portal, EDI, or API. Adjustments can be made after the payment due date and within the applicable legislative timeframe. Changes required before the payment due date must be submitted as a correction.

For casual goods, including those accounted for on a CAD, adjustment requests require Form B2G and cannot be submitted through CARM.

CBSA may re-determine or further re-determine the origin, tariff classification, and value for duty, including following a self-adjustment, and may consider undeclared surtax.

Imported goods may also be examined at importation or subject to post-release verification. Non-compliance may result in additional surtax, duties, taxes, penalties, and interest.

Advance Rulings and Appeal

Importers can request advance rulings under the Customs Act on FTA origin, tariff classification, or marking of goods imported from a CUSMA country.

The imposition of the surtax itself is not subject to appeal under the Customs Tariff or Customs Act. However, CBSA determinations, re-determinations, and further re-determinations may be subject to review and appeal.

Importers receiving a notice of re-determination or further re-determination under section 59(2) may request a section 60 review within 90 days and after paying amounts owed.

Remission

For goods not already eligible under the United States Surtax Remission Order (2025), requests continue to be accepted and assessed under the U.S. Remission Framework.

Importers subject to the new surtax should advise their customs broker of any remission relief that may apply to their goods and confirm whether they qualify under an applicable remission order. Where remission is available, importers should work with their broker to ensure the relief is properly accounted for when the goods are imported.

What Importers Should Do Now

Canadian importers of U.S.-origin goods should:

• Work closely with their customs broker to make sure affected goods are properly classified under the specific tariff items covered by the United States Surtax Order (2026).
• Confirm U.S. origin under Canada’s CUSMA marking rules.
• Make sure the correct 15%, 25%, or 50% surtax rate is applied to each affected good.
• Review shipments in transit on September 8 and retain documentation supporting their transit status.
• Work with their customs broker to make sure CARM accounting procedures and the applicable surtax code are correct.
• Review applicable remission, Duties Relief, and Duty Drawback options.
• Maintain proof of origin and supporting customs documentation for affected shipments.
• Assess the potential impact of the surtax on GST and total import costs.
• Review applicable exceptions and exclusions before accounting for the surtax.

Background/Additional Information

Canada introduced the new counter-tariffs through the United States Surtax Order (2026) in response to U.S. tariffs on Canadian goods, including those imposed under Section 338 and Section 232. The Order, which comes into force on September 8, 2026, imposes surtaxes of 15%, 25%, or 50% on specified U.S.-origin goods, with the applicable rate depending on the Canadian tariff item.

• Steel
• Dairy products
• Appliances
• Agricultural equipment
• Pulp and paper
• Electronics

The detailed government list identifies individual products by Canadian tariff item, HS heading, product description, and applicable tariff rate. The published list includes hundreds of tariff items, so importers should review the specific classification of each affected product rather than relying only on broad product categories.

Non-CUSMA U.S.-Origin Goods May Face Double Exposure

Importers should also note that if a product is of U.S. origin but does not qualify under CUSMA, it may be subject to both the Most-Favoured-Nation (MFN) tariff rate and the new countermeasure duty. This stacking effect makes it especially important to confirm CUSMA eligibility alongside origin and tariff classification when assessing total duty exposure.

For further details on the administration and enforcement of surtax orders, refer to CBSA Memorandum D16-1-1. Importers can also contact the Border Information Service at 1-800-461-9999 in Canada or the U.S., or use the CBSA’s Client Support Contact Form for assistance.

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