In late winter and early spring of 2025, the United States imposed tariffs on Canadian-origin goods imported into the U.S. In response, the Canadian government introduced reciprocal surtaxes on goods of U.S. origin entering Canada. These measures have created challenges for many Canadian businesses, prompting the government to offer two distinct avenues for relief.
Relief Through Formal Application
One method available to Canadian importers is a formal application to the Department of Finance for remission of surtaxes on specific goods. This process is not only applicable to goods of U.S. origin but also extends to certain Chinese-origin goods subject to similar surtaxes.
To qualify, applicants must demonstrate how the surtaxes negatively impact their operations and the broader Canadian economy. The purpose of this inclusion is to provide evidence of limited availability of the goods from Canadian or non-U.S. sources, as well as documentation showing contractual obligations to use the specified materials. In specific instances, relief may be granted based on the distinctive characteristics of the goods.
Applicants are required to submit comprehensive details about their Canadian operations, including the value of the goods affected. Each application is reviewed individually, and a guidance document is available to support businesses through the process.
Relief Through Order in Council (OIC)
The second avenue for relief is through the United States Surtax Remission Order (2025), which allows for exemption based on the end use of the goods in Canada. The Department of Finance has issued specific OIC numbers tied to categories such as Canadian manufacturing, food and beverage processing, public health, health care, public safety, and national security.
To utilize this method, importers must be able to support the intended end use of the goods with appropriate documentation. This documentation typically includes contracts, purchase orders, and statements or certificates confirming the end use.
Timing and Recovery
Both relief options can be applied at the time of import or used to recover surtaxes already paid on previously imported goods. This flexibility enables businesses to manage costs more effectively and maintain continuity in their operations, adapting to their specific needs.
How Tradewin Can Help
Tradewin is here to support Canadian importers through every step of the relief process. Our team of experts will guide you in preparing a formal application or determining eligibility under an OIC. We are committed to helping you secure the relief you need and recover any surtaxes paid before approval.
If your business has been affected by these surtaxes, don’t navigate the relief process alone. Contact us today to explore your options and ensure you’re making the most of the relief available.