The Canada Border Services Agency (CBSA) has issued clarification regarding the application of a 25% surtax on specific steel and aluminum goods imported from the United States under the United States Surtax Order (Steel and Aluminum 2025).
The surtax applies to goods listed in Schedule 2, regardless of their classification under Chapter 98 or 99.
The surtax applies to steel goods identified in Schedule 2 of the United States Surtax Order (Steel and Aluminum 2025) that are eligible for classification under the tariff items of Chapter 98 and 99 of the Schedule to Canada’s Customs Tariff, even though they are entitled to the Most-Favoured-Nation (MFN) zero customs duty rate under Chapter 98 or 99. These goods will still be subject to a 25% surtax.
Examples Include:
- Returning goods that are made in the U.S. and were previously imported into Canada and duty-paid—for example, a Canadian tourist or businessperson returning from the U.S. with goods (such goods would have previously been released and accounted for under the Customs Act before being sold to the Canadian owner).
- Goods made in the U.S. and repaired or altered across the border—for example, a specialized commodity in the U.S. that requires repair in Canada, or vice versa. Again, if the goods were in Canada, they would need to have already been duty-paid.
CBSA confirmed:
The 25% surtax applies to goods listed in Schedule 2, regardless of their classification under Chapter 98 or 99.
The customs notice aims to clarify the specific intent and wording of the United States Surtax Order (Steel and Aluminum 2025), in that the order explicitly targets steel and aluminum goods identified in Schedule 2 to ensure that these goods are consistently subject to the surtax when imported from the U.S., even if they might otherwise qualify for duty exemptions under other tariff classifications.
This approach prevents certain goods from circumventing the surtax through these classifications and maintains the policy’s intended effect.
Argo Customs Brokers Is at Your Service
If you’re importing steel or aluminum goods from the U.S. and are unsure how the 25% surtax applies to your shipment, Argo Customs Brokers is here to help. Our experienced team understands CBSA policies and can guide you through proper classification, declaration, and compliance requirements.
Contact us today to ensure your import documentation meets all regulatory standards and to avoid unexpected surtax charges.