Automobiles

Canada announces new countermeasures in response to tariffs from the U.S.

25% tariffs on non-CUSMA compliant fully assembled vehicles imported into Canada from the United States.

25% tariffs on non-Canadian and non-Mexican content of CUSMA compliant fully assembled vehicles imported into Canada from the United States

‍

We are still awaiting on the official communication from the CBSA on how this will be implemented and the effective date and time.

News Release

CBSA News Release - Canada announces entry into force of countermeasures against auto imports from the United States.

Customs Notice 25-19: United States Surtax Remission Order (2025)

Customs Notice 25-17: United States Surtax Remission Order (Motor Vehicles 2025). This notice provides information on the application of the United States Surtax Remission Order (Motor Vehicles 2025) (Remission Order), which is intended to minimize the negative effects of the surtaxes on Canadian motor vehicle companies by providing relief in exceptional situations. (Issued April 15, 2025)

Customs Notice 25-15: United States Surtax Order (Motor Vehicles 2025). This notice provides information on the application of the United States Surtax Order (Motor Vehicles 2025), specifically regarding surtax provisions effective April 9, 2025, on motor vehicles that originate in the United States (U.S.).

In the above Customs Notice 25-15 United States Surtax Order (Motor Vehicles 2025), section 6 explains how the duty for surtax is calculated at 85% of the total value for duty of the goods:  

6. The surtax applies even if the motor vehicle qualifies for preferential tariff treatment under the Canada–United States–Mexico Agreement (CUSMA).

1. If a motor vehicle is entitled to the United States Tariff (the CUSMA preferential tariff treatment duty rate), the value of all goods that originate in Canada or Mexico that are used in the production of the motor vehicle are excluded from the value for duty of the motor vehicle for the purposes of calculating the surtax.
2. As a means to account for the assumed value of all goods that originate in Canada or Mexico that are used in the production of the motor vehicle, 15% of the value for duty of the motor vehicle will be excluded from the value for duty for the purposes of calculating the surtax (i.e., the value for duty for the surtax is calculated at 85% of the total value for duty of the goods).
3. To claim a higher exclusion amount, the importer should obtain evidence of the value of goods that originate in Canada or Mexico used in the production of the motor vehicle and provide it to a CBSA official upon request. In such cases, importers are expected to obtain sufficient supporting information (e.g. a valid CUSMA certification of origin, records substantiating compliance with Regional Value Content (RVC), core parts, steel/aluminum and Labour Value Content (LVC), value for duty documentation, and documentation of Canadian/Mexican parts used). Importers electing to obtain and retain such evidence are encouraged to use the Release Prior to Payment (RPP) program.

Canada's latest countermeasures, in response to the US tariffs on the Canadian auto industry, will come into force at 12:01 a.m. EDT on April 9, 2025.This includes:

• 25% tariffs on non- Canada-U.S.-Mexico Agreement (CUSMA) compliant fully assembled vehicles imported into Canada from the United States.
• 25% tariffs on non-Canadian and non-Mexican content of CUSMA compliant fully assembled vehicles imported into Canada from the United States.

List of vehicle products from the United States subject to 25% tariffs effective April 9, 2025.