United States Surtax Order (Motor Vehicles 2025)
Canada applies a 25% surtax to motor vehicles that originate in the United States and are classified under a tariff item in Schedule 1 of SOR/2025-118. For vehicles entitled to the United States Tariff, the surtax is 25% of the value for duty minus the Canadian and Mexican content (at least 15% of the value for duty). Vehicles under 8704.60.00 with a gross vehicle weight over five tonnes are exempt.
Effective: 2025-04-09. The surtax takes effect at 12:01 a.m. ET on its effective date.
Canada has applied surtaxes since April 9, 2025.
Goods classified under Chapters 98 and 99 of the Customs Tariff are exempt, except the 14 Schedule 4 tariff items (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), which are subject to the surtax only when the goods are also classifiable under a Schedule 1, 2 or 3 tariff item (SOR/2026-186; CBSA Customs Notice 26-23).
Tariff items covered (19)
| Tariff item | Surtax rate | Description |
|---|---|---|
| 8703.22.00 | 25% | |
| 8703.23.00 | 25% | |
| 8703.24.00 | 25% | |
| 8703.31.00 | 25% | |
| 8703.32.00 | 25% | |
| 8703.33.00 | 25% | |
| 8703.40.10 | 25% | |
| 8703.40.90 | 25% | |
| 8703.50.00 | 25% | |
| 8703.60.10 | 25% | |
| 8703.60.90 | 25% | |
| 8703.70.00 | 25% | |
| 8703.80.00 | 25% | |
| 8703.90.00 | 25% | |
| 8704.21.90 | 25% | |
| 8704.31.00 | 25% | |
| 8704.41.90 | 25% | |
| 8704.51.00 | 25% | |
| 8704.60.00 | 25% |