A sweeping new set of trade barriers officially took effect today across Canada, introducing significant financial implications for businesses importing merchandise from south of the border.
Under Customs Notice 26-23 and Customs Notice 25-11 (Steel and Aluminum 2025) which is live today, September 8, 2026, the federal government has implemented new surtaxes targeting U.S.-origin goods. Here is a breakdown of how the changes work, who they impact, and the exemptions available to traders.
Tiered Surtaxes and Geographic Scope
The newly enacted surtaxes are not a flat fee; instead, they are structured at 15%, 25%, or 50% of the value for duty, varying according to the specific tariff classification and schedule.
The measures apply strictly to goods qualifying as U.S. merchandise under Canada’s CUSMA country-of-origin marking standards. However, the Canada Border Services Agency (CBSA) has established precise geographic limitations:
- Included: Products manufactured or produced in the U.S. mainland and states, including shipments routed through secondary countries before reaching Canada.
- Excluded: Goods originating from U.S. territories—specifically Puerto Rico, Guam, the Northern Mariana Islands, American Samoa, and the U.S. Virgin Islands are entirely exempt from the surtax.
Key Exemptions and Special Provisions
While the net is cast wide, Ottawa has carved out several specific rules for unique shipping scenarios and communities:
- In-Transit Grace Period: Goods already enroute to Canada prior to today’s rollout are exempt, provided importers can furnish solid proof (such as bills of lading, cargo control paperwork, or entry reports) showing the shipment was actively moving under carrier control.
- No, De Minimis Escape: Unlike traditional duties, these surtaxes still apply to low-value shipments that normally qualify for tax exemptions under the Postal Imports Remission Order or Courier Imports Remission Order.
- Akwesasne Relief: Eligible commercial and casual goods destined for residents of Akwesasne have been granted full remission from the surtax.
- Chapters 98 and 99: Items categorized under Chapters 98 and 99 remain generally exempt unless a specific tariff item from those chapters is explicitly enumerated in Schedule 4.
Compliance, Documentation, and Financial Relief
Importers will need to tighten their documentation protocols to ensure compliance and avoid costly delays at the border.
- Proof of Origin: Commercial importers must back up their filings with standard documentation, such as commercial invoices containing mandatory CUSMA data elements. For casual personal imports, CBSA will rely on existing marking rules indicating the product is of U.S. origin.
- Steel Derivatives: In scenarios where overlapping surtax orders apply to steel derivative products, the regulations dictate that only the rules outlined in the United States Surtax Order (2026) will be enforced.
- Remission Framework: For companies struggling under the new tariffs whose items aren’t already covered by the United States Surtax Remission Order (2025), the U.S. Remission Framework remains open for formal requests. Willson can assist with this application process.
The new tariff measures will continue to qualify the existing horizontal remission provisions under the United States Surtax Remission Order for the following goods and uses:
- All goods used by eligible public health, public safety, and national security organizations.
- Steel goods used in automotive and aerospace manufacturing.
- Non-steel goods used in:
- manufacturing,
- processing,
- food and beverage packaging, and
- agricultural production in Canada.
Industries covered
For remission purposes:
- Manufacturing includes all activities classified under NAICS Chapter 31-33.
- Agriculture includes all activities classified under NAICS Chapter 11, including forestry, fishing, and hunting.
Ensure you work closely with your Customs Broker to align proper tariff classification and remission exemptions based on your import product/end use covered by the new regulations for accounting to CBSA.
List of products from the United States subject to counter-tariffs effective September 8, 2026
United States Surtax Order (2026)
Order Amending the USSO (Steel and Aluminum 2025) Concerns/questions can be directed to the Canadian regulatory team.