Canadians Now Have to Pay New Surtax at U.S. Border and on Packages

Surprise! There’s a New Fee for Canadians Crossing the U.S. Border

If you’re a Canadian who loves a quick trip to the U.S. for some cross-border shopping, there’s a new cost you need to watch out for. A fresh 25% surtax is now in effect on certain American goods, and it’s hitting not only commercial shipments but also regular folks bringing items back home.

This surtax, introduced by the federal government, is already in play as of March 4. That means your Target hauls, outlet mall deals, and Amazon U.S. orders could cost you a lot more.

What’s This New Surtax and Who’s Paying It?

In an email statement last Friday, Canada Border Services Agency (CBSA) spokesperson Rebecca Purdy confirmed that the surtax applies to:

• Commercial shipments (businesses importing U.S. goods)
• Goods imported by mail or courier (yes, your online shopping too)
• Goods brought back by individual travellers above personal exemptions

The surtax is part of Canada’s countermeasures against U.S. trade restrictions. The government is making it clear: this extra charge will stay until the U.S. removes its restrictive measures against Canada.

How Will the Surtax Affect Your Shopping Trips?

If you’re heading to Buffalo, Detroit, or Seattle for a quick shopping run, here’s what you need to know:

• You can still bring back goods duty-free, but only if you stay within your exemption limit.
• If you exceed your personal exemption, you’ll have to pay up at the border.
• If you order goods from the U.S., expect to pay the surtax upon delivery.

How Much Can You Bring Back Without Paying Extra?

Canada has personal exemptions that let you bring back a certain amount of goods without paying duties or taxes. Here’s a quick refresher:

If you exceed these limits, the surtax applies on top of regular duties and taxes.

What Kinds of Products Have the Surtax?

Not every item from the U.S. is affected, but Finance Canada has released a full list of goods subject to the surtax. Some of the affected items include:

• Household appliances
• Certain food products
• Specific consumer goods

If you’re unsure whether your purchase will get taxed, it’s best to check before you shop.

How Do You Pay the Surtax?

If you’re charged the surtax, here’s how you’ll be expected to pay:

• At the border: If you bring back goods exceeding your exemption, CBSA officers will assess the surtax and you’ll pay before re-entering Canada.
• Through couriers: If you ordered something online, expect to pay when your package arrives.
• At Canada Post: If your item is coming via mail, you’ll have to pay when you pick it up.

Why Is Canada Doing This?

This surtax is retaliation for U.S. trade policies that have placed tariffs on Canadian goods. Recently, U.S. President Donald Trump imposed 25% tariffs on all Canadian and Mexican products, plus 10% tariffs on energy. While some tariffs were paused until April 2, the Canadian government is pushing back with reciprocal measures.

Should You Still Shop in the U.S.?

With the surtax in place, here are some pro tips if you’re still planning to shop across the border:

✅ Check exemption limits before shopping—stick to what’s allowed.

✅ Buy Canadian when possible to avoid extra costs.

✅ Use parcel forwarding services wisely, but remember that mailed goods can still get taxed.

✅ Stay informed—the surtax list may change, so always check Finance Canada’s website before purchasing.

Talk of Toronto Final Thoughts

The new 25% surtax is another expense for Canadians who love cross-border shopping and online ordering from U.S. stores. While it’s meant to counter U.S. trade measures, it’s also an extra burden on shoppers. Before you head to Buffalo, New York City, or Seattle for deals, do the math to see if it’s still worth it. And if you’re ordering online, be ready for a surprise charge at your doorstep!

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