On September 7, 2026, the Canadian Government released a new order applying between 15% and 50% surtax on a broad range of goods originating from the US. It has also amended the existing United States Surtax Remission Order (2025) AND the United States Surtax Order (Steel and Aluminum 2025).  

United States Surtax Order (2026)

The US Surtax Order includes a broad range of goods across four Schedules, each with its own surtax percentage:

• 15% Schedule 1, specific tariff items such as industrial machinery, air conditioners, forklifts, and molds.
• 25% Schedule 2, covering agricultural and household goods, including cheese, lumber, paper/tissue products, and carpets.
• 50% Schedule 3, covering a host of specific goods covering everything from milk powder to plasterboard. 
• Schedule 4 covers goods of chapters 98 and 99 that are also subject to the surtax. The surtax percentage is based on the goods' original classification and can vary.

The complete lists of the goods affected by the new surtax order, broken down by schedule, can be found here. 

Additional information:

• Goods in transit (under the control of the carrier) to Canada on or prior to September 8, 2026.
• Subject goods are those eligible to be marked as originating in the United States, according to the Determination of Country of Origin for the Purpose of Marking Goods (CUSMA Countries) Regulations.
• The United States Surtax Remission Order (2025) has also been amended to allow remission of surtaxes under this new surtax order, and many goods in the public health, safety, national defense, healthcare, manufacturing/processing, and food/beverage packaging may be eligible for a remission. 

United States Surtax Order (Steel and Aluminum 2025)

The Canadian Government has amended the existing United States Surtax Order (Steel and Aluminum 2025), with updated schedules for each. 

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Some goods, primarily manufactured goods, are listed under Schedule 1 and Schedule 2, are surtaxed at 25%, while those further upstream in the manufacturing process, such as raw materials, are listed in Schedule 1.1 and 2.1 and are now surtaxed at 50%.

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Importers are encouraged to work closely with their Customs broker to determine if their goods are newly surtaxed, if the rates have changed, and what, if any, remissions or exemptions could apply. 

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