Cross-border shopping: How is surtax collected on U.S. goods at the Canadian border?

The Canadian government has imposed 25 per cent tariffs on certain imported goods from the United States. This could affect Canadians with travel plans that include crossing the border for the Victoria Day long weekend. Upon returning home, the Canada Border Services Agency (CBSA) said in a news release that Canadians should be prepared to declare “everything you have with you upon entry into Canada,” adding that travellers who are driving are responsible for everything inside their vehicle. Here’s how many Americans came to Canada this April compared to last year The long weekend comes as tensions between Canada and U.S. remain high . The ongoing trade war has led to some changes for travellers, including tariffs being imposed on American goods being brought into Canada. Here’s what to know. What is a surtax? A surtax is a tax imposed on top of another tax. The CBSA is collecting the tariffs in the form of a surtax, the agency said . “The amount of tariffs is a percentage of the ‘value for duty’ of the good before taxes (GST and HST). The surtax is calculated by multiplying the value for duty by 25 per cent,” according to the CBSA. An example would be a U.S. good with the value for duty of $50. That amount would be multiplied by 25 per cent, equalling $12.50. Therefore, the total surtax in that case would be $12.50. How is the surtax on U.S. goods being collected at the Canadian border? Per the CBSA, the surtax is collected upon entry into Canada. Returning residents as well as visitors are expected to pay the “applicable tariffs, duties and taxes owing on purchased U.S. goods upon entry into Canada.” “This surtax applies only to goods exceeding your personal exemptions limit ” for Canadian residents, per the CBSA news release. This includes groceries. “The length of your absence from Canada determines your eligibility for an exemption and the amount of goods you can bring back without paying any duty and taxes,” per the CBSA. “You must be outside Canada at least 24 hours to claim this exemption. Personal exemptions do not apply to same-day cross-border shoppers.” For international travellers, including Americans, goods that visitors are importing temporarily for personal use , such as vehicles, luggage and personal items, are not subject to tariffs. A border officer will do an assessment of the goods that the traveller is bringing, per the CBSA. International travellers are permitted to bring in personal goods that are “considered reasonable in quantity” for the length of their stay. “If an officer determines that the goods exceed a reasonable quantity for the intended stay, you are still allowed to bring them in but you will need to pay duties, taxes and applicable tariffs,” the CBSA said. The tariffs do not replace the GST/HST or any applicable duties and are added to the value for tax, the CBSA said. There are separate limits for items like alcohol, tobacco, meat and dairy. Are there surtax exemptions for some Canadian residents? Yes. There is an exemption for residents of Campobello Island, New Brunswick. That’s because the island can only be accessed from the U.S. by ferry in the summer or by bridge year-round. As long as goods from the U.S. are purchased by a Campobello Island resident who is returning after less than 24 hours, the goods are in the person’s possession and intended for personal or household use, those goods won’t be subject to tariffs. What goods will the tariffs apply to at the Canadian border? The federal government has provided a complete list of U.S. products that the tariffs apply to online . This ranges from food items like tomatoes to artwork such as paintings or drawings. The tariffs at the border apply to “new and used goods marked as made in the U.S., produced in the U.S., or originating in the U.S. or goods that have no country of origin marking.” Travellers will still need to pay tariffs on U.S. goods that are imported by mail and courier. They will also need to pay tariffs on goods that will stay in Canada, including gifts that are otherwise duty and tax exempt up to $60, as well as goods that are transiting through, being transported or shipped through Canada to a third country or goods that are brought into Canada temporarily for demonstration or exhibition. “The burden of proof that the goods are not considered as originating from the U.S. lies with the person bringing the goods into Canada,” the CBSA said. “Goods purchased in the U.S. but which originate in another country are not subject to these tariffs (for example, clothing marked as made in Italy is exempt). Tariffs will apply if there is no evidence that the goods are the product of a country other than the U.S.” How many travellers came to Canada last year on Victoria Day long weekend? Last year, CBSA said it welcomed 93.4 million travellers into Canada for Victoria Day. The increased volume of travellers also led to illegal drugs, weapons and firearms being confiscated at the border. The agency said it stopped 34,400 kilograms of illegal drugs from entering the country over the long weekend in 2024, as well as 17,200 weapons and 930 firearms. Ahead of this long weekend, CBSA said that although it prioritizes efficient processing of travellers by air and land “without compromising safety and security.” “If you encounter wait times at the border, it is likely because we are working behind the scenes to conduct examinations, seize drugs, firearms or stolen vehicles or prevent high-risk individuals from entering Canada,” per CBSA.

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