Quick answer: Canada’s new counter-tariffs on U.S.-origin goods took effect on September 8, 2026, under the United States Surtax Order (2026). Depending on the product, importers now pay a 15%, 25%, or 50% surtax on select U.S. goods, including steel, aluminum, dairy, appliances, agricultural equipment, pulp and paper, and electronics. The surtax applies only to goods that qualify as U.S.-origin under Canada’s CUSMA marking rules, and shipments already in transit on September 8 are exempt.
If your business imports from the United States, this is not a background policy story, it is a shipment-by-shipment question: Does this apply to my products? What rate am I looking at? And is there anything I can do about it? This guide answers each of those questions and outlines the concrete steps to take now. If you need help applying any of this to your specific shipments, Mantoria’s licensed customs brokerage team is here for that conversation.
When did Canada’s new counter-tariffs take effect?
Canada’s new counter-tariffs took effect at 12:01 a.m. on September 8, 2026. The measure follows the United States’ decision to impose a 50 percent tariff on roughly $27.6 billion of Canadian goods under Section 338 of the U.S. Tariff Act, effective August 22, 2026. Canada’s response matches those U.S. tariffs dollar-for-dollar and rate-for-rate.
The Government of Canada issued the United States Surtax Order (2026) on September 4, 2026, and the Canada Border Services Agency followed with Customs Notice 26-23 on September 7, confirming how the new measure would be administered at the border.
What are the new surtax rates, and which products do they cover?
The new surtax rates are 15%, 25%, or 50% of the value for duty, depending on the specific tariff item.
Key details:
- Scope: close to $27.6 billion in U.S.-origin imports across steel and aluminum, dairy, household appliances, agricultural equipment, pulp and paper, plastics, cosmetics, and electronics.
- U.S. steel, aluminum, and iron products now carry a 50% surtax, up from the previous 25% rate.
- Existing Canadian counter-tariffs on U.S. autos, including the 25% rate, remain unchanged and separate from this new measure.
- Goods eligible to be marked as originating from Puerto Rico, Guam, the Northern Mariana Islands, American Samoa, or the U.S. Virgin Islands are excluded from the surtax.
The rate cannot be determined from a general product description or industry alone. Every product must be matched to the exact tariff item on the government’s published schedule.
Does every U.S. shipment automatically face the new surtax?
No, not automatically. The surtax is triggered by tariff classification and country of origin, not simply by the fact that a shipment left from a U.S. address. A product can ship from an American supplier and still have originated somewhere else entirely, and a U.S.-origin product can also reach Canada through a third country.
Before assuming a shipment is affected, or exempt, confirm three things for every SKU:
- The exact tariff classification currently used for the product, matched against the specific tariff item on the government’s published list, not a general product category.
- The country of origin, supported by supplier documentation, not just the country of export.
- Whether the shipment qualifies for the in-transit exemption or any other treatment, based on the shipment date and supporting records.
Two very similar products can fall under different tariff items with different surtax treatment, so classification accuracy matters more now than ever.
What happens to goods that were already in transit on September 8, 2026?
Goods already in transit to Canada on September 8, 2026 are exempt from the new surtax. This exemption applies specifically to shipments that were underway before the measure took effect, provided the importer can document the shipment date with transport or shipping records.
Is any relief or remission available from the surtax?
Yes, in limited circumstances, through Canada’s existing tariff remission framework. The government will consider remission requests where:
- Goods used as inputs cannot reasonably be sourced domestically, regionally, or from non-U.S. suppliers.
- Other exceptional circumstances would have a severe adverse impact on the Canadian economy.
Remission is not automatic. Only companies registered in Canada may apply, requests are assessed by the Department of Finance in consultation with other departments, and any approval requires an Order in Council. Where possible, remission should be claimed at the time of entry rather than pursued later as a refund, since refund processing can take months. If your business already benefits from an existing remission order, such as the one covering certain steel derivative goods, confirm with Mantoria team whether that relief is expected to extend to the new September 8 measures, since approval for that extension is still pending.
What should importers do before their next U.S. shipment?
Importers should audit open purchase orders, confirm classification and origin, and build the surtax into landed costs before goods arrive.
A practical checklist:
- List every open and upcoming U.S. purchase order, including supplier, product description, tariff classification, origin, value, and expected arrival date.
- Confirm the tariff classification for each product against the government’s tariff-item-level list, not a general category description.
- Verify country of origin with supplier documentation, especially for products that are sourced internationally but shipped through the U.S.
- Flag any shipments that were in transit on September 8 and gather documentation to support an exemption claim.
- Check whether your goods fall under an existing remission order, or whether an exceptional request is worth pursuing.
- Build the surtax into your landed cost and pricing model rather than treating it as a one-time surprise.
- Work with a licensed customs broker to review your Commercial Accounting Declarations before goods arrive at the border.
How does Mantoria help businesses manage the new surtaxes?
Mantoria’s customs brokerage team reviews tariff classifications, confirms CUSMA origin eligibility, manages Commercial Accounting Declarations, and monitors CBSA notices as they are published. Tariff and surtax changes like this one move quickly, and the cost of a misclassified shipment, or a missed exemption, lands directly on your margins and your delivery timelines.
If your business imports goods that fall within any of the newly surtaxed categories, or you are simply unsure how the September 2026 measures apply to your product lines, our team can review your specific shipments and walk you through the options. Learn more about our customs brokerage services, or reach out directly and we will help you find the right path forward for your business.
Canada's New Counter-Tariffs on U.S. Goods
No. The surtax depends on the product’s tariff classification and its country of origin under CUSMA marking rules, not on the vendor’s location alone. A shipment from a U.S. supplier may contain goods manufactured elsewhere, and origin, not the shipping address, determines whether the surtax applies.
U.S. steel, aluminum, and iron products are subject to a 50% surtax under the United States Surtax Order (2026), effective September 8, 2026. This is an increase from the previous 25% rate that applied to these goods.
The September 2026 surtax is a separate measure from Canada’s existing counter-tariffs on U.S. automobiles. The 25% tariff on autos remains in place and unchanged, while the new United States Surtax Order (2026) adds 15%, 25%, or 50% surtaxes on a different, broader list of products.
Yes, in specific circumstances. Canada’s remission framework allows registered Canadian companies to request relief where an input cannot reasonably be sourced outside the U.S., or where other exceptional circumstances apply. Approval is not automatic and requires review by the Department of Finance, so it is worth discussing your situation with a customs specialist before assuming a request will succeed.
The Canada Border Services Agency (CBSA) administers the United States Surtax Order (2026). CBSA published Customs Notice 26-23 on September 7, 2026 to confirm how the surtax is applied at the border.
