Canada US Surtax 2026: 25% Retaliatory Tariffs Explained

Canada has imposed retaliatory surtaxes on certain goods imported from the United States. These surtaxes are enacted through Statutory Orders and Regulations (SOR) published in the Canada Gazette.

Current US Surtaxes

• Steel products (Chapters 72-73): 25% surtax on US-origin steel
• Aluminum products (Chapter 76): 25% surtax on US-origin aluminum
• Motor vehicles (Chapter 87): 25% surtax on certain US-origin vehicles

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.

Example: US-origin steel plate (HS 7208.51.00.00) valued at $50,000 CAD:

• MFN duty (0%): $0
• US steel surtax (25%): $12,500
• GST (5%): $3,125
• Total duties and taxes: $15,625

Surtax Stacking

Multiple surtaxes can apply to the same shipment. For example, steel products from the US could be subject to:

• US retaliatory steel surtax (25%)
• Global steel safeguard measures (if applicable)
• Regular MFN duty

Country of Origin vs Country of Export

The surtax is based on the country of ORIGIN, not the country of export. US-origin steel shipped through Mexico is still subject to the US surtax.

Exemptions and Remissions

Some surtax orders include exemption processes for goods not available from Canadian or other sources. Check the specific SOR for remission order provisions.

TariffCalc Handles Surtaxes Automatically

Select the US as the country of origin in our calculator and TariffCalc detects all applicable surtaxes, calculates the stacked total, 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.