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New surtax at Canada-U.S. border in effect as trade war heats up

Click to play video: 'Tariffs now impacting cross-border purchases with 25 per cent surcharge'
Tariffs now impacting cross-border purchases with 25 per cent surcharge
Counter-tariffs on certain U.S. goods are now facing a 25 per cent tariff in addition to regular duties and taxes when being brought into Canada. The Canada Border Services Agency says the surtax began as of Tuesday. – Mar 5, 2025

British Columbians crossing the border from the U.S. back into Canada may notice they are being charged more after the start of a trade war between the United States and Canada.

Counter-tariffs on certain U.S. goods are now facing a 25 per cent tariff, in addition to regular duties and taxes, when being brought into Canada.

The Canada Border Services Agency (CBSA) said the surtax began on Tuesday, March 4, “in response to the U.S.’ imposition of tariffs on goods imported into the U.S. from Canada.”

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The surtax will only apply to goods that originate in the U.S. and will apply to goods imported for commercial and personal purposes, even when exported from a country other than the U.S. into Canada.

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The list of products from the United States subject to 25 per cent tariffs can be found here.

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The list includes meat, milk, cream, butter, yoghurt, cheese, bread, pasta, wood products, clothing, suitcases and much more.

These countermeasures will apply to commercial shipments, goods imported by mail or courier, and goods imported by individual travellers above their personal exemptions, the CBSA explained.

Surtaxes will remain in place until the U.S. eliminates its trade-restrictive measures against Canada, the Canadian government said.

Payment of surtax is made in the same way and within the same prescribed time that customs duties and taxes are paid.

When asked about this surtax, B.C. Premier David Eby said that he hopes that people will choose to travel in the province and across Canada and to buy local and buy Canadian before going to the United States.

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The surtax does not apply to goods that are classified, or that should be classified, in Chapter 98 or Chapter 99 with some exceptions that can be found at those links.

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The surtax does not apply to goods (both casual and commercial) eligible for remission under the Akwesasne Residents Remission Order.

When it comes to proof of origin for an item, the Customs Act states that proof must be made available for all imported goods with some exceptions set out in the Proof of Origin of Imported Goods Regulations and Customs Notice 20-22: The Canada-United States-Mexico Agreement’s (CUSMA) Regulatory Amendments and New Regulations Made Pursuant to the Customs Act.

Commercial goods must also show proof of origin.

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Personal importations of goods, known as casual goods or goods that are imported into Canada other than commercial goods, will be considered to have originated in the U.S. if they are marked as such or they have no country of origin.

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Casual goods imported from a country other than the U.S. that are marked as made in, produced in or originating in the U.S. are considered to originate in the U.S., according to the CBSA.

Exceptions to the surtax and additional information can be found on the CBSA website.

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