New Surtax Introduced for Canadians Crossing the U.S.-Canada Border
If you’re a Canadian who enjoys cross-border shopping in the U.S., you may want to budget for a new expense at the border.
As of March 4, the federal government has imposed a 25% surtax on certain U.S. goods purchased by travellers re-entering Canada, in addition to any applicable duties.
In an email to Daily Hive on Friday, Canada Border Services Agency (CBSA) spokesperson Rebecca Purdy confirmed that the surtax applies to commercial shipments, goods imported by mail or courier, and items brought back by individual travellers exceeding their personal exemptions.
“These countermeasures will remain in place until the U.S. eliminates its trade-restrictive measures against Canada,” Purdy stated.
CBSA officers are responsible for enforcing the surtax across all entry points, including at airports, land borders, and through mail or courier services. Any taxable goods brought into Canada must be declared, and the surtax will be assessed at the port of entry. Travellers will pay the fee on-site, while those receiving shipments will be charged upon delivery.
The surtax applies to U.S. products that exceed a traveller’s personal exemption, which allows Canadian residents to bring back a certain value of goods duty- and tax-free. Exemptions vary based on time spent outside Canada and include specific limits for tobacco, alcohol, and vaping products. Canadians can refer to the CBSA’s guide for personal exemption thresholds.
Those affected by the surtax can pay it the same way they would regular customs duties and taxes. A full list of U.S. goods subject to the surtax is available on Finance Canada’s website.
Earlier this week, U.S. President Donald Trump imposed a 25% tariff on all Canadian and Mexican products, including a 10% tariff on energy. However, on Thursday, he temporarily paused tariffs on some Canadian goods until April 2, and on Friday, he signaled possible retaliatory tariffs on dairy and lumber.
