Canada Extends U.S. Surtax Remission to New 2026 Counter-Tariffs

Qualifying U.S. goods used in manufacturing, processing, agricultural production, or food and beverage packaging may qualify for remission of Canada’s new counter-tariffs.

Canada has expanded its existing U.S. surtax remission provisions as new counter-tariffs on certain American goods took effect on September 8, 2026.

The ⁠United States Surtax Order (2026) imposes surtaxes of 15%, 25%, or 50% on listed goods originating in the U.S., calculated on the value for duty.

The Order also amends the United States Surtax Remission Order (2025), extending remission to goods subject to the new 2026 surtaxes under several circumstances.

For goods subject to the surtax, importers must use surtax code 26186A for the 15% rate, 26186B for 25%, or 26186C for 50% when completing the Commercial Accounting Declaration (CAD).

Which imports are covered by the expanded U.S. surtax remission?

Remission is available for qualifying goods imported for use in Canada in:

• Manufacturing or processing of any good
• Production of an agricultural product
• Packaging of a food product or beverage

The Order also extends the new 2026 surtaxes to other remission provisions in the 2025 Remission Order, including certain goods imported for health care, public health, public safety, national defence, or national security purposes, as well as certain product-specific remissions. Eligibility remains subject to the existing conditions of the Remission Order.

The amendments also extend certain remission provisions to earlier U.S. surtax measures, including the 2025 steel and aluminum and motor vehicle surtax orders.

This relief is separate from the government’s broader ⁠case-by-case remission process. According to the Canada Border Services Agency (CBSA), importers whose goods aren’t already covered by the 2025 Remission Order may still apply under the U.S. Remission Framework.

What other relief is available?

In addition to remission, other exemptions and potential relief are available for:

• Goods in transit: Goods that were in transit to Canada when the surtax took effect are exempt. According to ⁠CBSA guidance, they must have been bound for Canada, not yet arrived, and under carrier control. Importers must keep proof that the goods were in transit.
• Chapter 98 and 99 goods: Goods classified under Chapters 98 and 99 are generally exempt unless the applicable tariff item is listed in Schedule 4 of the Order.
• Import for Re-Export Program: Goods imported under a permit issued for the purposes of the Import for Re-Export Program are exempt from the surtax.

• Duties Relief/Duty Drawback Programs: The Duties Relief and Duty Drawback Programs may provide relief from the surtax, subject to applicable CUSMA requirements.

The Order also addresses overlapping surtaxes on steel derivative goods. Where goods are subject to both the United States Surtax Order (2026) and the Steel Derivative Goods Surtax Order, only the surtax under the United States Surtax Order (2026) applies.

How Cole International can help

Cole International provides trade consulting and customs brokerage services to help Canadian businesses understand how new tariffs and remission measures may affect their imports.

Reach out to one of our trade professionals to determine whether your U.S. imports are subject to the new surtaxes and identify potential remission or duty relief options.