Canada · Customs & GST

Canada's New Tariff Surtax Hits De Minimis Parcels — and GST Now Applies on Top of It

Canada's counter-tariffs on US-origin goods took effect 8 September 2026 at rates of 15%, 25% and 50%. CBSA has confirmed the surtax applies even to courier parcels that would otherwise fall under the de minimis thresholds — and GST is calculated on the tariff-inflated value.

What Has Changed?

On 25 August 2026, Finance Canada announced countermeasures in response to new US tariffs of up to 50% on roughly CAD 27.6 billion of Canadian goods. Ottawa is matching the US "dollar for dollar, rate for rate": counter-tariffs of 15%, 25% and 50% on listed US-origin products took effect 8 September 2026, drawn from the same product categories the US targeted under its own Section 338 and Section 232 actions. Publicly listed examples include furniture, clothing and apparel, steel and aluminium at the 50% tier, and appliances and dairy at 25%. If you sell any US-sourced goods into Canada, check the actual Order's product schedules directly — the tier a specific SKU falls into isn't always intuitive from category name alone.

This is separate from, and additional to, Canada's existing GST/HST and customs-duty rules on imports.

1. De Minimis Parcels Are No Longer Protected

CBSA Customs Notice 26-23 (7 September 2026) confirms the surtax applies even to shipments that would otherwise qualify under the Postal Imports Remission Order or the Courier Imports Remission Order — Canada's normal low-value thresholds (CAD 40 tax-and-duty-free, CAD 40–150 tax-only, for courier shipments from the US or Mexico).

• The surtax is payable even where customs duty itself is remitted under those low-value programs
• GST is calculated on the value for tax inclusive of the surtax, not the pre-surtax declared value
• Worked example from CBSA's own guidance: a CAD 150 parcel subject to the 25% tier has a taxable value of CAD 187.50 — so GST payable is CAD 9.38, not CAD 7.50

2. It Follows the Goods, Not the Shipping Route

The surtax applies to goods of US origin "even when exported from a country other than the United States" (Customs Notice 26-23, para 6). In practice, that means US-manufactured stock held in a European or Asian fulfilment warehouse and shipped to a Canadian customer from there is still caught by the surtax — origin, not ship-from location, is what matters.

3. Compliance Mechanics You Need to Know

The surtax is entered using codes 26186A (15%), 26186B (25%) and 26186C (50%) in field 85 of the customs accounting declaration. Goods already in transit on 8 September 2026 are exempt from the surtax if the importer can provide proof of the shipping date. Surtax impositions cannot be appealed under the Customs Act or the Customs Tariff.

Separately, CBSA Customs Notice 26-13 (12 June 2026) gives courier and low-value importers still completing their CARM (CBSA Assessment and Revenue Management) enrolment roughly a 12-month "proactive engagement" period, running to about June 2027, rather than immediate enforcement — during which a broker's business number can be used temporarily while the importer secures its own, enrols for release-before-payment, and posts the required security.