On September 8, 2026, the Government of Canada released the United States Surtax Order, 2026 (the 2026 Order), implementing Canada’s latest round of retaliatory tariffs on imports from the United States. The Canada Border Services Agency (CBSA) simultaneously issued Customs Notice 26-23, providing guidance on the administration of the new surtax regime. The measures contain several important compliance and operational considerations for Canadian importers, including confirmation that the existing remission framework has been extended to these new tariffs.
No CUSMA Carve-Out for Eligible Duty-Free Goods
One notable aspect of the 2026 Order is the absence of a broad CUSMA-based exemption. The surtax applies to goods that originate in the United States, with origin determined under the Determination of Country of Origin for the Purpose of Marking Goods (CUSMA Countries) Regulations. As a result, goods that qualify for preferential tariff treatment under CUSMA may nevertheless be subject to the retaliatory surtax if they are considered goods of U.S. origin under the applicable regulations. In short – CUSMA eligibility does not shield goods from the new surtax.
No “Stacking” with Steel Derivative Surtaxes
The 2026 Order prevents the cumulative application of certain retaliatory measures. Where imported goods are subject to both the United States Surtax Order, 2026 and the Steel Derivative Goods Surtax Order, only the surtax imposed under the 2026 Order will apply. This clarification avoids the potentially significant cost impact that would result from multiple surtaxes being imposed on the same importation.
Existing Remission Framework Extended
The Government has extended the existing surtax remission framework to cover the new retaliatory tariffs. Specifically, the 2026 Order amends the United States Surtax Remission Order (2025), making the current self-assessment remission mechanism available for goods subject to these latest measures. This means that businesses already relying on the remission process established under the 2025 framework can continue to do so with respect to the new tariffs, subject to the applicable requirements. In addition, importers may continue to pursue relief through the government’s formal remission application process.
Practical Implications
Businesses should:
- review whether existing remission claims remain available under the amended framework;
- assess whether goods imported after September 8 qualify for self-assessed remission; and/or
- consider submitting a remission request to the Minister of Finance where no alternative sourcing options exist or where significant business disruptions would result.
Chapter 98 and 99 Exemptions Remain Available
The 2026 Order confirms that goods classified under Chapters 98 and 99 of the Customs Tariff are generally exempt from the surtax. However, the exemption does not apply to goods classified under the following tariff items listed in Schedule 4 to the Order:
- 9804.30.00
- 9825.10.00
- 9825.20.00
- 9825.30.00
- 9826.10.00
- 9826.20.00
- 9826.30.00
- 9826.40.00
- 9897.00.00
- 9898.00.00
- 9899.00.00
- 9966.00.00
- 9971.00.00
- 9989.00.00
Importers using Chapter 98 or 99 provisions should confirm whether their tariff classification falls within one of these excluded items. Importers relying on Chapter 98 or 99 claims should ensure they have the required documentation to support the claim in case of a future CBSA trade compliance verification.
Duty Relief and Duty Drawback Programs Available
The Government has confirmed that Canada’s Duties Relief Program and Duty Drawback Program remain available in respect of surtax paid or payable under the 2026 Order, subject to applicable CUSMA requirements. For businesses importing U.S. inputs that are subsequently exported, these programs may provide important avenues to mitigate tariff costs.
Key Exemptions
The 2026 Order also contains several important exemptions. The surtax will not apply to U.S.-origin goods that were in transit to Canada on the day the surtax came into force; and goods imported pursuant to permits issued under Canada’s Import for Re-export Program. Importers relying on these exemptions should ensure that supporting documentation is maintained and readily available in the event of a CBSA trade compliance verification.
New Surtax Codes
The CBSA has assigned the following surtax codes for customs accounting purposes:
| Surtax Rate | Surtax Code |
| 15% | 26186A |
| 25% | 26186B |
| 50% | 26186C |
Importers should ensure that customs brokers, internal trade compliance teams, and ERP systems are updated to reflect the new accounting requirements.
What Businesses Should Do Now
The new retaliatory tariff package creates several immediate compliance obligations and opportunities for relief. Businesses importing US origin goods should:
- identify affected products and confirm whether they are considered U.S.-origin goods for marking purposes;
- review tariff classifications and any Chapter 98 or 99 treatment being claimed;
- assess eligibility for remission, duty relief, and drawback;
- validate customs accounting procedures and surtax code usage;
- review supply chain alternatives and sourcing strategies where higher surtax rates may significantly impact costs.
As with earlier rounds of retaliatory tariffs, the availability of remission and duty recovery mechanisms may significantly affect the ultimate economic impact of these measures. Businesses should carefully evaluate their options and ensure that claims are documented and implemented consistently.
