September 1st, A New Chapter in Canadian Surtax Countermeasures

In August, the Prime Minister of Canada, the Right Honourable Mark Carney, issued a letter addressing the counter-tariffs imposed on the United States. In it, he stated: “...the Canadian government will now match the United States by removing all of Canada’s tariffs on U.S. goods specifically covered under CUSMA.” He confirmed that this change would take effect on September 1st, while retaliatory tariffs on steel, aluminum, and autos would remain firmly in place.

September 1st has come and gone—and the Prime Minister’s words have materialized. In fact, in a twist worthy of current trade drama, the changes are broader than anticipated. It was initially expected that the Department of Finance would lift surtaxes only on goods covered by CUSMA (USMCA/T-MEC). However, with the release of finalized Customs Notices, the entire United States Surtax Order 2025-1 has been repealed (Customs Notice 25-10). That means no general surtax on U.S. goods, and no sweeping CUSMA-based exceptions either.

As the CSCB (Canadian Society of Customs Brokers) succinctly put it: “...goods outside those specific sectors simply revert to normal MFN tariff treatment under the Customs Tariff.” The sector-specific countermeasures mentioned include aluminum, steel, select copper products, and automobiles.

For those who enjoy a bit of light reading with a side of HS codes, the Canadian Government has published the full list of US goods subject to counter tariffs here:

Complete list of U.S. products subject to counter tariffs - Canada.ca

The trade landscape remains uneven terrain. Whether this latest update is a permanent fixture or just another waypoint is anyone’s guess. Still, it’s a welcome reprieve from the tariff tangle that preceded it.

If you would like more information on CARM or Canadian surtaxes, please contact Allyn International at sales@allynintl.com or 239-489-9900. Allyn International Services, Inc. (Allyn) is a privately-owned supply chain management, tax and customs consulting firm established in 1992. Our services comprise of supply chain & logistics management, global trade compliance and US tax compliance. Allyn offers customized solutions to meet your global needs with offices in Fort Myers, Fla., Shanghai, PR China, and Prague, Czech Republic.

Contributor: Bronwyn Hayes

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About Allyn International

Allyn International provides high quality, customer-centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance. Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North and South America, Europe and Asia. Allyn’s regional headquarters are strategically located in Fort Myers, Florida, U.S.A., Shanghai, P.R. China and Prague, Czech Republic. For more information, visit www.allynintl.com