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Every Active Canadian Surtax Order Explained (March 2026)
Canada has four active surtax orders. If you import from the US or China, at least one of them probably affects something in your product line.
Here's each order: what it covers, the rate, which HS codes are in scope, whether CUSMA gets you out of it, and what to actually watch for.
1. United States Surtax Order (2025-1) — SOR/2025-66
Effective March 4, 2025. 25% of value for duty on goods originating in the United States, covering roughly 1,270 tariff items across 50+ HS chapters.
The scope is wide. Consumer goods, agricultural products, apparel, footwear, furniture, appliances, tools, beverages, tobacco. If it comes from the US and it's not energy or raw materials, check the schedule.
HS chapters covered:
| Chapter | Products | Examples |
|---|---|---|
| 01–24 | Food and agriculture | Dairy, meat, coffee, spices, pasta, beverages |
| 33–34 | Cosmetics and soap | Perfumes, shampoo, detergents |
| 39 | Plastics | Floor coverings, sanitary ware, kitchenware |
| 40 | Rubber | Tires (new and retreaded) |
| 42 | Leather goods | Luggage, handbags, wallets, gloves |
| 44 | Wood products | Lumber, plywood, particle board, joinery |
| 57 | Carpets | Knotted, woven, tufted carpets |
| 61–63 | Apparel and textiles | Clothing, bedding, curtains, bags |
| 64–65 | Footwear and headgear | All types of shoes, hats, helmets |
| 84 | Machinery | Refrigerators, washing machines, power tools |
| 87 | Motorcycles | All engine sizes |
| 94 | Furniture | Seats, office furniture, mattresses, lighting |
CUSMA does not help here. Even with a valid origin claim, products under this order still get hit with the full 25%. Ottawa deliberately overrode CUSMA preferential treatment for the listed items. The surtax is retaliatory, and the government wanted it to bite.
Gazette source: SOR/2025-66
2. United States Surtax Order (Motor Vehicles 2025) — SOR/2025-118
Effective April 9, 2025. 25% of value for duty on motor vehicles originating in the United States, covering 19 tariff items under headings 8703 and 8704.
Canada's direct response to the US 25% auto tariff announced March 26, 2025. Covers passenger cars, trucks, and SUVs.
Covered HS codes:
- 8703: Motor vehicles for transport of persons (sedans, SUVs, crossovers, electric vehicles)
- 8704: Motor vehicles for transport of goods (pickup trucks, delivery vans)
CUSMA partially applies, but with an unusual calculation. For US vehicles that meet CUSMA rules of origin, the surtax only applies to 85% of the vehicle's value. The remaining 15% is deemed Canadian/Mexican content. If you can document a higher actual Canadian/Mexican content percentage, you can claim a larger exemption.
In dollar terms: a $50,000 US-origin CUSMA-compliant vehicle pays 25% surtax on $42,500 (85%) = $10,625, rather than $12,500 on the full value.
Gazette source: SOR/2025-118
3. Surtax on Certain Steel Goods (TRQ) — SOR/2025-148
Effective June 27, 2025 through June 27, 2026 (one-year sunset clause). 25% of value for duty above quota, targeting steel and aluminum imports, primarily US origin but also non-FTA countries. About 122 tariff items across 23 product categories.
Unlike the other three orders, this one isn't a flat surtax. It uses a Tariff Rate Quota structure. Each of the 23 steel product categories has a quarterly tonnage limit. Stay under the quota and your imports enter duty-free. Go over, and the 25% surtax kicks in.
Product categories include:
- Carbon steel ingots, billets, and blooms
- Hot-rolled sheet, steel plate, cold-rolled sheet
- Coated sheet (galvanized)
- Rebar, wire rod, structural sections
- HSS (hollow structural sections)
- Line pipe, OCTG, mechanical tubing
- Stainless steel bar, wire, and flat products
- Aluminum sheet, extrusions, and wire
Relevant HS chapters: 72 (Iron and steel), 73 (Articles of iron or steel), 76 (Aluminum).
CUSMA does not help here either.
One thing to watch: this order and SOR/2025-66 do not stack. If a steel HS code appears in both the TRQ order and the broad US surtax order, only the TRQ applies.
Gazette source: SOR/2025-148, amended by SOR/2025-155
4. China Surtax Order (2024) — Electric Vehicles — SOR/2024-187
Effective October 1, 2024. 100% of value for duty on electric vehicles originating in China. 23 tariff items under headings 8702, 8703, and 8704. And yes, that 100% is on top of the existing 6.1% MFN tariff.
Covered vehicle types:
- Electric and hybrid passenger automobiles (heading 8703)
- Electric and hybrid buses (heading 8702)
- Electric and hybrid trucks and delivery vans (heading 8704)
CUSMA is irrelevant. China is not a CUSMA party.
Gazette source: SOR/2024-187
CBSA is auditing surtax compliance right now
In January 2026, the CBSA published its 2026 Trade Compliance Verification Priorities and listed surtax compliance explicitly. They are actively auditing importers' surtax determinations.
Since CARM went live in October 2024, liability sits with the importer of record, not the customs broker. AMPS penalties for surtax non-compliance go up to $400,000, and CBSA has signaled that they intend to use that authority.
Look up your HS codes
The Surtax Checker is free and checks any HS code against all four active orders. No account needed.
This article provides compliance information only. It does not constitute legal advice or customs brokerage services. Data sourced from official Canada Gazette publications.