The Canadian Government announced the implementation of retaliatory surtaxes on certain U.S.-origin goods in response to U.S. Section 338 tariffs on Canadian products, starting September 8, 2026.
The Canada Border Services Agency (CBSA) published a Customs Notice on September 7, 2026, that detailed the following surtax provisions:
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Three surtax rates apply: 15%, 25%, and 50% depending on the product classification.
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The surtax applies only to goods considered U.S.-origin under CUSMA marking rules.
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Surtax applies even if goods are shipped from a third country, provided they originate in the United States.
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De minimis shipments are not exempt. Courier and postal shipments remain subject to surtax.
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The surtax is calculated on the Value for Duty (VFD) and is added before GST is calculated.
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Anti-dumping, countervailing, and regular customs duties continue to apply separately.
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The surtax is not cumulative with the Steel Derivative Goods Surtax Order; only one surtax applies.
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Goods in transit to Canada before September 8, 2026, are exempt.
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Chapter 98 and 99 goods are generally exempt unless specifically listed in Schedule 4.
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Duty Relief and Drawback programs remain available.
The Order in Council announcing the surtax can be found here:
https://orders-in-council.canada.ca/attachment.php?attach=48943&lang=en
CBSA’s Customs Notice 26-23 can be found here:
https://www.cbsa-asfc.gc.ca/publications/cn-ad/cn26-23-eng.html
