Canada US Surtax 2026: 15%, 25% and 50% Counter-Tariffs Explained

*Updated September 28, 2026.*

Canada imposes surtaxes (counter-tariffs) on certain goods originating in the United States. Each one is an Order made under section 53 of the Customs Tariff and published in the Canada Gazette.

Current US Surtaxes

• Steel and aluminum — United States Surtax Order (Steel and Aluminum 2025), SOR/2025-95. Since September 8, 2026 (SOR/2026-187), most goods pay 50% (Schedules 1.1 and 2.1); a short list stays at 25% (Schedules 1 and 2 — e.g. 7615.10 aluminum household articles, 7320.10 leaf springs).
• Motor vehicles — United States Surtax Order (Motor Vehicles 2025), SOR/2025-118: 25% on certain US vehicles.
• United States Surtax Order (2026), SOR/2026-186, in force September 8, 2026: 15%, 25% or 50% depending on the schedule — dairy, appliances, agricultural equipment, pulp and paper, electronics and more (e.g. whey 0404.10.10.00: 50%).

How Surtaxes Are Applied

Surtaxes are calculated on the value for duty (VFD) of the goods, separate from and in addition to regular customs duties. GST is then charged on the VFD plus duty plus surtax.

Example: US-origin steel plate (tariff item 7208.51.00) valued at $50,000 CAD, imported on or after September 8, 2026:

• MFN duty (0%): $0
• US steel surtax (50%): $25,000
• GST (5% of $75,000): $3,750
• Total duties and taxes: $28,750

One surtax, not a stack

Since August 1, 2025, a good pays one surtax even when several orders list it. The orders themselves say which one applies: the Steel Derivative Goods Surtax Order, for instance, does not apply to goods already subject to the US steel and aluminum order.

Country of Origin vs Country of Export

The surtax follows the country of ORIGIN, not the country of export: goods eligible to be marked as goods of the United States under the CUSMA marking rules. US-origin steel shipped through Mexico is still subject to the US surtax.

Remission: when the surtax is not owed

The United States Surtax Remission Order (2025) (CBSA Customs Notice 25-19) cancels the surtax in specific cases. It covers the 2026 order too since September 8, 2026:

• Who uses the goods — public health, public safety and national security: firefighting services, police, ambulance, correctional services, National Defence, CSIS (code 25-0466A); medically necessary health care: hospitals, clinics, long-term care (25-0466B).
• What the goods are used for — inputs to manufacturing or processing in Canada, agricultural production, or packaging of food and beverages (25-0466C; not for the Motor Vehicles order).
• Listed goods — tariff items listed in the Order's schedules (codes 25-0466D, M, E, P, T…).
• Named importers — goods imported by the businesses listed in Schedules 4 and 4.1.

The importer claims it at the border, by entering the special authorization code in the Special Authority OIC field of the CAD — or afterwards, by correction or adjustment, within two years. Keep the records that prove the use: CBSA can ask for them. Deadlines apply (most grounds run until July 1, 2027).

TariffCalc Handles Surtaxes Automatically

Select the US as the country of origin in our calculator and TariffCalc detects the applicable surtax, flags the remission that may apply, and shows the full cost breakdown including provincial taxes. Also check if your goods qualify for CUSMA duty-free treatment and whether SIMA anti-dumping duties apply on top of surtaxes.