The Government of Canada announced a new 25% surtax for goods with Country of Origin (COO), meaning Made in the US, with an effective date of March 4, 2025. The surtax is introduced in response to the imposition by the US of tariffs on Canadian goods.
What this means:
- Shipments containing goods made in the US, regardless of where they are shipped from, being imported into Canada, will be subject to a 25% surtax.
- Shipments that are currently eligible for De Minimis treatment, will continue to be exempt from general duties and taxes BUT will not be exempt from the 25% Surtax. The surtax will apply regardless of the value of the shipment.
- The Surtax applies to a wide range of US goods included in the List of products from the United States subject to 25 per cent tariffs effective March 4, 2025 – Canada.ca published by the Department of Finance Canada.
For items being sent DDU, the recipient will bear this cost, for items being sent DDP the retailer will bear the cost of the surtax.