Effective March 4, 2025, Canada will implement a 25 percent surtax on certain goods of US origin. The complete list of affected goods is outlined in the Schedule to the United States Surtax Order (2025-1). The surtax applies to both commercial and personal imports, even when exported from a country other than the U.S. into Canada.

Exemptions & Exceptions

While the surtax applies broadly, certain exemptions exist:

  • Goods classified under Chapter 98 of Canada’s Customs Tariff are generally exempt, with the exception of tariff items 9804.30, 98.25, 98.26, 9897.00.00, 9898.00.00, and 9899.00.00.
  • Goods classified under Chapter 99 of the Customs Tariff are exempt, except for those under tariff items 9966.00.00, 9971.00.00, and 9989.00.00, which remain subject to the surtax despite their eligibility for Most-Favoured-Nation zero customs duty rates.
  • Goods imported under the Akwesasne Residents Remission Order (both casual and commercial) are not subject to the surtax.

The introduction of this surtax marks a significant policy shift in Canada-U.S. trade relations. Importers and businesses must review the updated surtax schedule to assess their obligations and explore potential relief measures. If you have additional questions about how this may impact your business, reach out to your Mohawk Global Representative.

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