Order Amending the United States Surtax Remission Order (2025): SOR/2025-269

Canada Gazette, Part II, Volume 159, Number 27

Registration
SOR/2025-269 December 11, 2025

CUSTOMS TARIFF

P.C. 2025-919 December 11, 2025

Her Excellency the Governor General in Council, on the recommendation of the Minister of Finance, makes the annexed Order Amending the United States Surtax Remission Order (2025) under section 115footnote a of the Customs Tariff footnote b.

Order Amending the United States Surtax Remission Order (2025)

Amendments

1 The United States Surtax Remission Order (2025) footnote 1 is amended by adding the following after section 3:

Remission — United States Surtax Order (Steel and Aluminum 2025)

3.1 Subject to section 5, remission is granted of surtaxes paid or payable under the United States Surtax Order (Steel and Aluminum 2025) in respect of goods imported

2 Paragraph 5(a) of the Order is replaced by the following:

3 The Regulations are amended by adding the following after section 5:

For greater certainty

5.1 For greater certainty, there is no time limit that applies in respect of the importation of goods referred to in section 4.3 or in Schedule 1, 2 or 5.

Coming into Force

4 This Order comes into force on the day on which it is registered.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Order.)

Issues

The Government of Canada has imposed tariffs on certain U.S.-made goods and indicated it would consider remission requests related to these surtaxes. The Government also established time-limited, horizontal surtax relief to provide additional time for importers to adjust their supply chains. On November 26, 2025, the Prime Minister announced changes to this horizontal relief as part of a suite of measures aimed at protecting and strengthening Canada’s steel industry.

Background

U.S. surtax and remission

On March 4, 2025, the United States imposed tariffs of 25% on U.S. imports from Canada, with energy products subject to a 10% tariff (since amended to include potash), under the International Emergency Economic Powers Act (IEEPA), further to alleged concerns about border security and the flow of fentanyl. On March 7, the United States provided an exemption under the IEEPA tariffs for imports from Canada that qualify for preferential treatment under the Canada-United States-Mexico Agreement (CUSMA) [i.e. are “CUSMA-compliant”]. On March 12, 2025, the United States imposed further tariffs of 25% on certain Canadian steel and aluminum products. On April 3, 2025, the United States imposed global tariffs of 25% on imports of passenger vehicles and light trucks. In the case of Canada (and Mexico), these auto tariffs apply in full to non-CUSMA compliant vehicles but apply only to the value of non-U.S. content of CUSMA compliant vehicles.

Canada has responded to these tariffs by introducing a suite of countermeasures. On March 4, 2025, the Government of Canada imposed 25% tariffs on $30 billion in goods imported from the United States. On March 13, 2025, the Government of Canada imposed 25% tariffs on an additional $29.8 billion in steel, aluminum, and other products imported from the United States in response to U.S. tariffs against Canadian steel and aluminum products. In addition, on April 9, the Government of Canada imposed 25% tariffs on non-CUSMA compliant U.S.-made light vehicles, and on the non-Canadian and non-Mexican content of CUSMA compliant U.S.-made light vehicles.

These surtaxes are implemented through three separate regulations: the United States Surtax Order (2025-1), the United States Surtax Order (Steel and Aluminum 2025), and the United States Surtax Order (Motor Vehicles 2025), made pursuant to section 53 of the Customs Tariff.

Public consultations held in the context of these surtaxes confirmed stakeholder support for these countermeasures as a necessary response to U.S. tariffs. However, some stakeholders noted concerns with their ability to shift supply chains due to factors such as no or limited alternative sources of supply (short supply), or the requirement for certain products to comply with certification requirements, product specifications or contractual requirements, requiring Canadian businesses to purchase U.S. products.

On March 4, 2025, the Government announced a framework and process for how it will consider remission requests for the tariffs on products from the United States. Under specific circumstances, remission allows for relief from the payment of surtaxes, or the refund of surtaxes already paid. Remission represents an exception to the rules by providing for relief of otherwise applicable duties. Therefore, the Government only considers remission where it is required to address exceptional and compelling circumstances that, from a public policy perspective, are found to outweigh the primary rationale behind the application of the tariffs.

On April 16, 2025, Canada implemented the United States Surtax Remission Order (2025), which provides temporary, horizontal relief for any goods imported by or on behalf of public health, public safety, or national-security entities, as well as certain goods deemed necessary for public health and health care. It also provides relief for any goods used as inputs in Canadian manufacturing, processing, or food and beverage packaging. Horizontal remission under this Order was initially set to expire on October 15, 2025, but was subsequently extended to December 15, 2025, while also being expanded to cover goods used in agricultural production. The United States Surtax Remission Order (2025) was also amended on June 26, 2025, and October 15, 2025, to provide additional relief from tariffs for certain goods found to be in short supply and for companies facing exceptional circumstances.

On August 22, 2025, Canada announced that it would remove its counter-tariffs on U.S. goods, with the exception of those on steel, aluminum and autos, as of September 1, 2025. Further to this announcement, counter-tariffs put in place in March 2025 were removed for most U.S. imports, via the Order Amending and Repealing Certain Orders Made Under the Customs Tariff (United States Surtax).

On November 26, 2025, the Prime Minister announced a package of new measures to protect and strengthen Canada’s steel industry. As part of this announcement, the Government confirmed that temporary horizontal relief for imported steel products will expire on January 31, 2026, with the exception of goods used for the manufacturing of automobiles, auto parts, and aerospace products.

Objective

The objective of the Order Amending the United States Surtax Remission Order (2025) is to modify the scope and duration of relief provided for public health, public safety, and national security entities, and for goods used in manufacturing and processing, food and beverage packaging and agricultural production in Canada.

Description

Pursuant to section 115 of the Customs Tariff, this Order remits surtaxes paid or payable on imports of certain goods from the United States. The United States Surtax Remission Order (2025) is amended to modify the duration of remission under sections 1 through 3 of the Order, as well as to create a new section 3.1, resulting in the following changes:

Regulatory development

Consultation

On March 4, 2025, Canada announced a public comment period with respect to the potential application of tariffs on a wide range of imports from the United States, including auto imports. From March 4 to April 2, 2025, Canada’s public comment period resulted in extensive stakeholder input and feedback, with nearly 7 000 written submissions.

Canadian businesses, stakeholders, and partners generally confirmed their support for Canada’s surtaxes on certain U.S. goods. However, some stakeholders noted concerns with their ability to shift supply chains away from the United States due to limited alternative sources of supply (short supply), the requirement for certain inputs to comply with certification requirements, product specifications or contractual obligations.

On March 4, 2025, the Government of Canada also published on the Department of Finance’s website a notice explaining the remission framework and process under which remission could be provided for surtaxes imposed on imports from the United States. Since that time, the Department has received a very high volume of requests from businesses seeking relief from the surtaxes on U.S. imports.

Indigenous engagement, consultation and modern treaty obligations

Following an assessment of modern treaty implications, no adverse impacts on potential or established Indigenous or treaty rights, which are recognized and affirmed in section 35 of the Constitution Act, 1982, were identified in the Order.

Instrument choice

Section 115 of the Customs Tariff provides the authority for the Governor in Council to remit surtaxes on the recommendation of the Minister of Finance.

Regulatory analysis

Benefits and costs

This Order is a relieving mechanism to the benefit of industry impacted by the U.S. surtaxes. The administrative costs for Canadian businesses to claim remission of the surtaxes are expected to be limited.

The extension to the duration of remission provided under the horizontal elements of the United States Surtax Remission Order (2025) will provide continued surtax relief for stakeholders in the public health, public safety, and national security sectors, as well as in the manufacturing, processing, food and beverage, and agricultural sectors. This will ensure that immediate surtax relief continues to flow to Canadian businesses that rely on U.S. imports to support their operations in Canada, while the Government continues to process company-specific requests for remission under the framework.

The short-term extension of horizontal relief for steel goods used in manufacturing, processing, agricultural production, and the packaging of food or beverages to January 31, 2026, reflects the need to support efforts for Canadian steel producers to capture opportunities to meet domestic demand over the near term. While horizontal relief has been an important source of surtax relief for Canadian importers, as they look to transition their supply chains away from the United States, it has also lessened the incentives to use Canadian-made steel, where supply is available. Therefore, the Government is transitioning from horizontal to company-specific relief for steel after January 31, 2026, with the exception of inputs for the manufacture of motor vehicles, aerospace goods and related parts.

This approach reflects an ongoing effort to balance the interests of Canadian steel producers and steel consuming industries. The transition away from horizontal remission will help to address risks to Canada’s steel industry and workers related to the increase of steel imports into the Canadian market and the loss of U.S. market access. Meanwhile, the ongoing relief for motor vehicle and aerospace manufacturing reflects the established cross-border supply chains in these sectors, the specialized nature of their inputs, often requiring several years to certify a new supplier, as well as the impact that U.S. tariffs have had on these sectors.

For downstream producers operating outside of motor vehicle and aerospace manufacturing that are unable to shift their steel supply chains away from the United States, due to a lack of Canadian supply or other exceptional circumstances, the Government continues to consider company-specific requests for remission. Since March, the Government has extended surtax relief to hundreds of steel, aluminum and other products found to be in short supply in the Canadian market, in addition to company-specific relief where circumstances warrant.

For importations made after the date of entry into force of this amending Order, remission claims can be made for each applicable importation as part of the process of filling existing customs documentation requirements. The importer will be required to include one extra code on their usual import document. As in all cases, the importer must maintain records supporting their importation (e.g. related to tariff classification, entitlement to a tariff preference, and entitlement to the remission). There would be minimal incremental costs for the Government to process the claims.

Importers requesting a refund for goods imported prior to the entry into force of this amending Order will submit forms to the Canada Border Services Agency (CBSA), accompanied by supporting documentation, establishing that the imported goods qualify for remission. There would be minimal incremental costs for the industry to supply the documentation and for the Government to process the claims.

Small business lens

Analysis under the small business lens concluded that the Order Amending the United States Surtax Remission Order (2025) will impact small businesses. Some of the importers meet the definition of “small business” in the Policy on Limiting Regulatory Burden on Business, and the process to claim remission of duties paid meets the definition of “administrative burden” set out in the Policy. No additional flexibility is necessary for small businesses claiming remission, as all eligible importers already possess the original customs forms required to justify remission and will benefit from the remitted funds.

One-for-one rule

This Order relates to tax administration and is exempt from the requirement to offset administrative burden and regulatory titles under the one-for-one rule. The requirement for Canadian importers to submit claims for remission meets the Red Tape Reduction Act definition of administrative burden on businesses. However, duties are considered to be “taxes” for the purpose of the one-for-one rule and have been exempted from the offset requirement.

Regulatory cooperation and alignment

The amending Order is not related to a work plan or commitment under a formal regulatory cooperation forum.

Effects on the environment

In accordance with the Cabinet Directive on Strategic Environmental and Economic Assessment, a preliminary scan concluded that this Order would not result in positive or negative environmental effects. Therefore, a strategic environmental and economic assessment is not required.

Gender-based analysis plus

No impacts based on gender and other identity factors have been identified for this Order.

Implementation, compliance and enforcement, and service standards

The CBSA will assess any claims for remission made pursuant to this Order and will ensure compliance with their terms and conditions in the normal course of its administration of customs and tariff-related legislation and regulations. In doing so, the existing administrative framework will be leveraged to ensure that costs can be managed within existing resources. Any refund issued pursuant to the amending Order will be administered by the CBSA. Depending on the volumes and complexity of refund submissions, the CBSA strives to achieve a 90-day processing standard.

Contact

Laura Bourns
Director
Domestic Tariff Policy
International Trade Policy Division
Department of Finance Canada
Ottawa, Ontario
K1A 0G5
Email: laura.bourns@fin.gc.ca