Canada’s Remission Process on Surtaxes (Updated)

Trade Update • April 15, 2025

he Government of Canada has introduced several remission and relief measures to support Canadian businesses impacted by imposed surtaxes—both from Canada’s own countermeasures against unfair U.S. tariffs and from tariffs on imports from China, including electric vehicles (EVs), steel, and aluminum. These actions are aimed at helping businesses sustain operations, adapt supply chains, and maintain competitiveness.

Update – Please see section ‘U.S. Tariff Dispute Support’.

Surtax on China and U.S. Imports

To counter assessed unfair competition and protect Canadian workers and businesses, the federal government has implemented tariffs (surtaxes) on certain Chinese and U.S. imports:

Surtaxes on China Imports

• A 100 per cent surtax on all Chinese-made EVs, effective October 1, 2024;
• A 25 per cent surtax on imports of steel and aluminum products from China, effective October 22, 2024; and,
• Potential surtaxes on critical manufacturing sector products, particularly batteries and battery parts, semiconductors, solar panels, and critical minerals, which the government consulted on from September 10, 2024, to October 10, 2024

Surtaxes on U.S. Imports

• Canada’s 25% Tariff on U.S. Imports In Effect March 13
• Canada’s 25% Surtax on U.S. Steel and Aluminum
• Tariff on U.S. Automobile Imports, Effective April 9

Remission Eligibility (China Imports)

To support Canadian businesses in adapting to these tariffs, the government has launched a remission process for:

• Electric Vehicles (EVs)
• Steel and Aluminum Products (Recover Canada’s Steel and Aluminum Surtax)
• Potential Future Surtaxed Products

The government will consider remission requests under the following circumstances:

1. Limited Sourcing Options: Goods used as inputs or their substitutes cannot be sourced domestically or from non-Chinese sources.
2. Pre-existing Contracts: Contracts made before August 26, 2024, may require Canadian businesses to use Chinese inputs for a specified time.
3. Other Exceptional Situations: Case-by-case evaluation will address significant adverse impacts on the Canadian economy.

Note: Remission will not be granted for goods intended for resale in the same condition to the United States. If the government imposes surtaxes on other goods, such as critical manufacturing products, the remission process will be extended to include these goods as well. The remission will be transitional, primarily to help businesses adjust their supply chains. In certain cases, it may apply retroactively from the date of surtax implementation.

U.S. Tariff Dispute Support (Update)

In response to unjustified U.S. tariffs on Canadian goods, the Minister of Finance announced on April 15, 2025 the following new supports:

Performance-Based Remission Framework for Automakers
Automakers that maintain vehicle production and investment in Canada may import a limited number of U.S.-assembled, CUSMA-compliant vehicles without paying Canada’s countermeasure tariffs. The volume of tariff-free imports will scale down if Canadian production or investment is reduced.

Temporary Remission for Key U.S. Imports (6 Months)
Relief will apply to U.S.-origin goods essential for:

• Canadian manufacturing, processing, and food/beverage packaging
• Public health, health care, safety, and national security
  This time-limited measure gives Canadian businesses and public institutions more flexibility while they transition to domestic alternatives.

Large Enterprise Tariff Loan Facility (LETL)
Now open for applications, this facility offers liquidity support to eligible large businesses facing difficulty accessing traditional market financing—particularly in sectors tied to Canada’s food, energy, economic, and national security. Recipients must work to maintain Canadian jobs and operations. Firms in insolvency prior to the tariff crisis are not eligible. Apply Here (LETL).

Canada announces new support for Canadian businesses affected by U.S. tariffs

Quote

“From day one, the government has reacted with strength and determination to the unjust tariffs imposed by the United States on Canadian goods. We continue to stand by Canada’s workers and businesses. Today, we’re giving Canadian companies and entities more time to adjust their supply chains and become less dependent on U.S. suppliers. This will help make our economy stronger and more resilient.”

– The Honourable François-Philippe Champagne, Minister of Finance

How We Can Help

Our Global Trade Services team can guide you through the surtax recovery process, ensuring you maximize your refund potential. Whether you need assistance navigating the Duty Drawback Program or other surtax recovery options, we’re here to help streamline the process and secure the refunds you’re entitled to.

Contact Us Today! Booking a Meeting, email consult@ghy.com, or call +1 (800) 667-0771.