Canada Renews Surtax Remission on U.S.-Origin Vehicle Imports for 2026-2027
Eligible automakers can import a set number of CUSMA-compliant passenger vehicles and light trucks free of Canada's 25% counter-tariff until April 8, 2027.
Canada has renewed surtax remission on U.S.-origin vehicle imports for a second year.
The United States Surtax Remission Order (Motor Vehicles 2026) took effect on April 9, 2026, and remains in force until April 8, 2027.
The remission applies to CUSMA-compliant U.S.-origin vehicle imports, specifically passenger vehicles and light trucks, that are imported by eligible automakers between April 9, 2026, and April 8, 2027.
For CUSMA-compliant vehicles, Canada's 25% counter-tariff does not apply to the portion of the value for duty representing parts originating in Canada or Mexico. The Canadian and Mexican content of a U.S. motor vehicle is assumed to be 15% unless the importer provides evidence of a higher amount.
For vehicles that are not CUSMA-compliant, the counter-tariff applies to the full value for duty and is charged in addition to any applicable customs duties.
To qualify for remission, importers must maintain Canadian production and investment commitments. In cases where manufacturing has been reduced or paused due to factory retooling, production must restart in accordance with timelines established by the Minister of Finance and the Minister of Industry.
The schedule identifying eligible manufacturers and vehicle allocations has not been published for confidentiality reasons.
Importers must file a claim for tariff relief with the Minister of Public Safety and Emergency Preparedness within two years of the date of importation. No remission will be granted if relief has already been claimed under another provision of the Customs Tariff for the same vehicle.
The Government of Canada is also conducting a public consultation on how the automotive remission framework can be used more strategically to reinforce domestic production, attract new investment, and strengthen the long-term competitiveness of Canada's automotive sector.
Comments can be submitted until April 13, 2026. The results of the consultation may inform future changes to the remission framework.
At Cole International, we offer trade consulting and customs brokerage services to help Canadian businesses navigate surtax remission requirements and ensure compliance with import regulations.
Reach out to one of our trade professionals to discuss how the surtax remission framework for U.S.-origin vehicle imports may affect your imports.