Active Surtax Orders

Summary Table

SOR/2025-66 -- United States Surtax (General)

• Rate: 25% ad valorem
• Target origin: United States (US)
• Legal authority: Customs Tariff, s. 53
• CUSMA exemption: Yes -- goods qualifying for CUSMA preferential treatment under a valid certification of origin are exempt
• Expiry: No fixed expiry; remains in force until repealed

HS Code Scope

This is the broadest of the active surtax orders, covering thousands of tariff items across multiple chapters. Key affected categories include:

• Metals and metal products (Chapters 72-73, 76)
• Machinery and equipment (Chapter 84)
• Electrical equipment (Chapter 85)
• Plastics and rubber (Chapters 39-40)
• Paper and paperboard (Chapters 47-48)
• Chemicals (Chapters 28-38)
• Food and agricultural products (Chapters 1-24)
• Vehicles and parts (Chapter 87, excluding those in SOR/2025-118)
• Furniture and consumer goods (Chapters 94-96)

Always check your specific 10-digit HS code against the order's schedule using TariffTrail's Surtax Checker rather than relying on chapter-level summaries.

SOR/2025-118 -- Motor Vehicles Surtax

• Rate: 25% ad valorem
• Target origin: United States (US)
• Legal authority: Customs Tariff, s. 53
• CUSMA exemption: Partial -- applies only to vehicles that do not meet the CUSMA automotive rules of origin (75% RVC threshold). Vehicles meeting the threshold are exempt.
• Does not stack with SOR/2025-66 for products within its scope

HS Code Scope

• Motor vehicles for transport of persons (HS 8703)
• Motor vehicles for transport of goods (HS 8704)
• Chassis fitted with engines (HS 8706)
• Bodies for motor vehicles (HS 8707)

CUSMA requires 75% Regional Value Content for vehicles (up from 62.5% under NAFTA). A significant number of US-assembled vehicles may not meet this threshold due to non-North American content in components.

SOR/2025-148 -- Steel and Aluminum Surtax

• Rate: 25% ad valorem
• Target origin: United States (US)
• Legal authority: Customs Tariff, s. 53
• CUSMA exemption: Yes
• Stacks with SOR/2025-66 for products appearing in both schedules (combined 50% surtax)

HS Code Scope

• Iron and non-alloy steel (Chapter 72): flat-rolled products, bars, rods, angles, shapes, sections, wire
• Articles of iron or steel (Chapter 73): tubes, pipes, fittings, fasteners, wire products, structural components
• Aluminum (Chapter 76): unwrought aluminum, alloys, plates, sheets, strip, foil, tubes, pipes, bars, rods, profiles

This order was enacted as a direct response to the reimposition of US Section 232 tariffs on Canadian steel and aluminum exports.

SOR/2024-187 -- China Surtax (Electric Vehicles and Strategic Goods)

• Target origin: China (CN)
• Legal authority: Customs Tariff, s. 53
• CUSMA exemption: Not applicable -- CUSMA does not cover goods of Chinese origin
• Does not stack with US surtax orders (different target origin)

Rates and Scope

100% surtax (effective October 1, 2024):

• Battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) originating in China (HS 8703.80)

25% surtax (phased implementation):

• Steel products (Chapters 72-73) originating in China
• Aluminum products (Chapter 76) originating in China

The 100% surtax on Chinese EVs is the highest surtax rate currently in effect in Canada.

How Surtax Stacking Works

Stacking occurs when a single product falls within the scope of more than one surtax order. Both surtaxes apply simultaneously, calculated additively on the value for duty (not multiplicatively):

Value for Duty:              $100,000
SOR/2025-66 surtax (25%):   $25,000   (calculated on $100,000)
SOR/2025-148 surtax (25%):  $25,000   (calculated on $100,000)
Total surtax:                $50,000

Stacking applies to: US-origin steel and aluminum products whose HS codes appear in both SOR/2025-66 and SOR/2025-148 schedules.

Stacking does not apply to: US-origin non-metal products (only SOR/2025-66), motor vehicles (SOR/2025-118 takes precedence), or Chinese-origin products (different target origin).

If a product qualifies for CUSMA, the exemption applies to all applicable US surtax orders. A CUSMA-qualifying steel product that would otherwise face 50% stacked surtax pays 0%.

Remission Orders

Remission orders grant relief from surtax obligations for specific products or circumstances. Common grounds include:

• No domestic alternative available
• Critical supply chain input for Canadian manufacturing
• Contractual commitments entered before surtax announcement
• National security or public interest

Remission applications are submitted to the Department of Finance Canada. TariffTrail tracks published remission orders in the surtax registry after human review and approval.

Importers who have applied for but not yet received a remission order must continue to pay the full surtax until the remission is published.