From pants to pasta, even your cross-border shopping trip is now subject to 25 per cent tariffs.
Canadian border officers have started slapping a 25 per cent surtax — in addition to applicable duties — on most items from the U.S. that Windsorites and other border residents have crossed with for decades.
“These countermeasures will apply to commercial shipments, goods imported by mail or courier, and goods imported by individual travellers above their personal exemptions,” Karine Martel, a spokesperson for the Canada Border Services Agency (CBSA) told the Star. “Surtaxes will remain in place until the U.S. eliminates its trade-restrictive measures against Canada.”
The move is part of the federal government’s retaliation to 25 per cent tariffs U.S. President Donald Trump has inflicted on Canada.
Trump imposed his across-the-board tariffs on Tuesday, though he later agreed to a one-month pause on the levies for automobiles and car parts.
Canada’s retaliatory 25 per cent tariffs on commercial goods and surtax for individual travellers took effect the same day Trump launched his trade war.
The fee is charged under the newly minted United States Surtax Order. It applies to any American made products, even if they are entering Canada from a third country.
“The surtax is introduced by Canada in response to the U.S.’ imposition of tariffs on goods imported into the U.S. from Canada,” the federal government states on its website.
The 25 per cent surtax will be charged on top of applicable duties.
“Just a heads up for anyone/if anyone is still shopping in the USA!! Since this is a large group that I can reach I just wanted to let you know that they are charging 25% tariffs + the 13% HST (duties) on items you are purchasing in the States & crossing over with,” a resident wrote on a Windsor-area community Facebook page. “So you will be paying 38% extra on what you buy. If you are not exempt (spending 2 nights or more) they are pulling everyone in right now that have something that they bought. Just be very mindful! SHOP CANADIAN.”
Similar to duties, the surtax will apply to travellers who do not qualify for or exceed their personal exemption limits.
The surtax applies to goods regardless of whether they are carried by car or mailed to Canada.
The CBSA stressed that items listed in the surtax order are not prohibited from importation. It’s just going to cost you to bring them into Canada.
For personal items, the CBSA will assess the surtax at the crossing point.
“This means that individuals travelling with the goods will pay at the port of entry and individuals shipping goods through the mail or courier will pay upon delivery,” said Martel.
Officially, there are no exemptions for cross-border day-trippers. But for residents of Windsor and other border towns it’s long been understood that, within reason, CBSA officers tend to look the other way.
The trade war appears to have changed that.
“We are working with trade chain partners to implement the surtax changes, as quickly as possible, in all streams of importation, including with the Universal Postal Union for the postal stream,” said Martel.
After spending 24 hours in the U.S., Canadians can claim goods worth up to $200 without paying duties and taxes.
The exemption increases to $800 after 48 hours.
Anything beyond that is now subject to duty and surtax charges.
A complete list of items subject to the surtax is available on the federal government’s website.