OTTAWA — The Canada Border Services Agency (CBSA) has confirmed it will begin collecting new 25 percent tariffs on certain goods imported from the United States, effective September 1, 2025.
The surtax, imposed on behalf of the Government of Canada, will apply to steel, aluminum, and automotive products originating in the United States. The measure is part of Canada’s latest trade policy response aimed at balancing economic pressures in key industrial sectors.
According to the CBSA, the tariffs will apply to the country of origin of the goods rather than the place of purchase. That means products manufactured in other countries but purchased in the U.S. will be exempt—provided importers can prove their non-U.S. origin. Conversely, items made in the U.S. will be subject to the 25 percent surtax even if purchased elsewhere.
The agency has also carved out an exception for residents of Campobello Island, New Brunswick, due to the island’s unique geography. As Campobello is connected to mainland Canada only by a U.S. bridge for most of the year, residents returning from short trips will be exempt from tariffs on U.S.-origin steel and aluminum products brought back for personal or household use.
The CBSA said the tariffs will be calculated based on the “value for duty” of the imported goods before GST or HST are applied. The 25 percent surtax is then added to that amount. For example, a U.S.-made item with a value for duty of $50 would incur a $12.50 tariff.
The agency emphasized that all travelers—including returning Canadian residents and international visitors—should be aware of the new rules and prepared to declare and pay applicable tariffs on eligible goods upon entering Canada.
