If you’re a Canadian who enjoys occasional cross-border shopping or frequently orders from U.S. retailers online, you might want to prepare for a financial surprise. Canada has implemented a new 25% surtax on certain American goods, and it could impact everything from your next U.S. shopping spree to online purchases. Whether you’re crossing the border in person, receiving a delivery, or returning from a trip abroad, your goods might come with a hefty surcharge.
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This surtax, which became effective on March 4, 2025, is part of Canada’s ongoing response to U.S. trade restrictions. It applies not only to commercial shipments but also to items brought across the border by individual travelers. If you’re importing goods, whether in your suitcase, car, or through mail, brace for this extra cost.
What Does This Surtax Mean for Canadians?
The new surtax of 25% is now in effect for a wide range of U.S. products entering Canada. So, if you’re heading back from the U.S. with a suitcase full of purchases or eagerly awaiting an online order, you may be facing a higher bill than expected. This measure is a direct retaliation against U.S. trade policies that have placed restrictions on Canadian goods.
According to the Canada Border Services Agency (CBSA), this surtax applies across all points of entry—whether you’re driving back, flying into the country, or receiving a U.S.-based shipment by courier.
The Details of the 25% Surtax
Here’s how it works: When Canadians return from the U.S., they’re typically allowed to bring back a certain amount of goods duty-free, depending on how long they’ve been away. For example, if you’ve been outside of Canada for more than 24 hours, you can bring back CA$200 worth of goods without having to pay any duties or taxes. If you’ve been away for more than 48 hours, that exemption increases to CA$800.
However, if you exceed these exemptions and your items fall under the surtax category, you will face a 25% surcharge at the border. This surtax is applied in addition to the usual duties and taxes that you may already be required to pay on imported goods.
Impact on Online Shoppers
It’s not just travelers who need to worry. If you’re ordering something online from the U.S. and it’s on the surtax list, expect to pay the 25% surcharge upon delivery. This means that even if you ordered the item for a specific price, you could be billed extra once it arrives in Canada, depending on its classification under the surtax list.
For Canadians looking to stay up-to-date on what goods are subject to these new tariffs, the full list can be found on Finance Canada’s official website.
How Are Surtaxes Collected?
Rebecca Purdy, a spokesperson for CBSA, clarified that the goods affected by this surtax aren’t outright banned—they’re just more expensive. For individual travelers, the surtax will be assessed and collected directly at the border. For mail and courier shipments, however, the shipping company will typically pay the surtax on your behalf and then bill you for the amount due when the package arrives.
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Key Tips for Canadians Crossing the Border or Ordering from the U.S.
Planning to take a cross-border trip or expecting a U.S. delivery? Here are a few tips to avoid surprises:
- Keep Your Receipts: Make sure you have receipts for all your purchases to help ease the process of clearing customs.
- Check Border Wait Times: Before heading out, check the current border wait times to avoid unnecessary delays.
- Consider Advance Declarations: If you’re flying back into Canada, consider submitting an Advance Declaration to help streamline your arrival process.
The 25% surtax is expected to remain in effect until the U.S. lifts its restrictive trade measures against Canada. In the meantime, Canadian shoppers might be looking more closely at purchasing domestically or seeking alternatives to cross-border shopping.
For those accustomed to the convenience of U.S. products, this surtax might make buying Canadian-made goods a more attractive and economical option.
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