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TARIFF REMISSION UPDATE

CANADA AMENDS UNITED STATES SURTAX REMISSION ORDER

With Canadian businesses still facing down the debilitating financial effects of the Canada-United States (US) trade war, the Government of Canada is attempting to provide businesses with further relief from its retaliatory tariffs.

On July 16, 2025, Canada enacted an Order in Council amending the United States Surtax Remission Order (2025) (the “Remission Order”), extending remission relief to a number of new products (adding further Schedules 2 to 5) and we report on the further opportunities for remission relief here.

Schedule 2 – Additional Eligible Goods

New Schedule 2 to the Remission Order extends remission to forty-six (46) products imported from the US that the Government of Canada has determined to be in short supply.  Notably there is no date specified for when Schedule 2 goods need to be imported by for relief to apply under section 5 of the Remission Order.

Some examples of new goods now eligible for relief include:

• 0404.10.10 - certain whey proteins
• 1006,20.00.10 - long grain brown rice
• 4012.90.90 - tire treads and tire flaps
• 4412.33.00 - plywood sheets

Schedule 3 – Additional Eligible Goods

New Schedule 3 of the Remission Order extends remission to four (4) steel products subject to surtax under the United States Surtax Order (Steel and Aluminum 2025).  Note that Schedule 3 goods must have been imported into Canada before March 13, 2026.

Schedule 4 – Remission For Specific Companies

New Schedule 4 provides relief with respect to certain products imported by twenty-three (23) companies facing exceptional circumstances (e.g., unavoidable  contractual obligations) which could have significant adverse impacts on the Canadian economy.  The period in which the goods must be imported by these companies as a condition of relief under section 5 of the Remission Order is specified in column 4 of Schedule 4.

Schedule 5 – Eligible Motor Vehicles

New Schedule 5 extends remission to motor homes, ambulances, hearses, and prison vans falling under seven (7) specified HS codes.  Additionally, subsection 4.3(b) of the Remission Order extends relief to all-terrain vehicles.  Similar to Schedule 2 goods, there is no importation date specified as a condition of relief under section 5 of the Remission Order.

A Cautionary Note

Importers should make certain they satisfy all of the conditions for relief under the Remission Order prior to claiming relief, as a failure to meet a condition for relief triggers a mandatory correction obligation and will result in surtaxes duties owing under section 118 of the Customs Tariff.

Takeaways

Canada has extended the remission relief available to Canadians facing 25% Retaliatory Tariffs on US originating goods. Experienced international trade counsel can assist in dealing with these complexities and uncertainties, and with Remission Applications where merited. 

For help with Remission related issues, click here.

Download a PDF copy of this Blog here.