New 25% Surtax Hits Canadians Shopping in the U.S. and Online

New U.S. Surtax Hits Canadian Shoppers – Here’s What You Need to Know

For many Canadians, cross-border shopping is a way of life. Whether it’s grabbing exclusive sneaker drops, stocking up on affordable groceries, or picking up home essentials at American big-box stores, shopping in the U.S. has always been a solid option. But that just got more expensive.

As of March 4, 2025, the Canadian government has slapped a 25% surtax on specific American goods, adding a fresh layer of costs for travelers and online shoppers.

This isn’t just affecting big businesses. Regular people bringing items back from the U.S., shoppers ordering online, and even small businesses importing products are feeling the heat.

What’s This Surtax and Who Has to Pay It?

The Canada Border Services Agency (CBSA) confirmed that the surtax applies to:

• Goods purchased in the U.S. and brought back by travellers (if you go over your personal exemption limit)
• Online orders from U.S. retailers (packages shipped via mail or courier)
• Commercial shipments (businesses importing American products)

This surtax is part of Canada’s response to trade restrictions imposed by the U.S. and will stay in place until those restrictions are lifted.

How Does the Surtax Affect You?

Here’s how the surtax will impact Canadian shoppers and businesses:

• If you’re shopping in Buffalo, Detroit, or Seattle, expect to pay extra at the border if your purchase exceeds the personal exemption limit.
• If you’re ordering from U.S. retailers like Amazon, Nike, or Best Buy, be ready to pay upon delivery.
• If you’re a small business owner importing goods, you’ll need to adjust pricing or source alternative suppliers.

What Are the Personal Exemption Limits?

The CBSA allows Canadian travellers to bring back goods duty-free if they stay within these limits:

Time Spent Outside Canada	Personal Exemption (CAD)
Less than 24 hours	None
24 to 48 hours	$200
48+ hours	$800

If you exceed these limits, the surtax applies, along with any existing duties and taxes.

Which Products Are Affected?

The surtax applies to specific U.S. goods, including:

• Certain food products (be prepared for pricier grocery hauls)
• Household appliances
• Consumer goods

Finance Canada has released a full list of affected products, so before you splurge on that U.S. shopping trip, check the list to avoid unexpected fees.

How Do You Pay the Surtax?

If your purchase is subject to the surtax, here’s how you’ll need to pay:

• At the border: CBSA officers will assess the fee when you declare your goods.
• Via courier: If ordering online, the fee will be added to your final cost upon delivery.
• Through Canada Post: If a package is held at the post office, you’ll pay before pickup.

Why Is This Happening?

This surtax is part of Canada’s countermeasures against U.S. trade policies.

• Recently, U.S. President Donald Trump imposed 25% tariffs on all Canadian and Mexican goods, plus 10% tariffs on energy.
• On April 2, some tariffs were paused, but Canada is still pushing back with these retaliatory taxes.

How Can You Avoid the Extra Costs?

Here are some tips to keep more money in your pocket:

✅ Shop Canadian – Support local businesses and avoid the surtax altogether.

✅ Stick to your personal exemption – Keep purchases under the limit to dodge extra fees.

✅ Check the surtax list – Make sure the item you’re buying isn’t on the list before you shop.

✅ Consider alternatives – Look for similar products from Europe or other countries that aren’t hit with the surtax.

Final Thoughts

The 25% surtax is a new reality for Canadian shoppers who love buying from the U.S. While it’s meant to push back against unfair trade policies, it also means that everyday Canadians are footing the bill. Before your next cross-border shopping spree or online order from the U.S., check your limits, do the math, and decide if it’s still worth it.

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