Canadians Shopping In The U.S. To Pay A New Tax For Going Over Their Spending Limits
An important update for frequent border crossers.
The Canada Border Services Agency confirms that shopping goods taken across the border back into Canada will be subject to a surtax — an additional tax on what is already being taxed — based on how long shoppers have been in the U.S. and how much they have purchased.
The surtax, as well as the recent tariffs imposed by the Trump administration, will be applied to a variety of U.S. products such as coffee, nail polish and playing cards. Canadian shoppers who often shop across the border will now have to think twice before making purchases in the U.S.
According to the Government of Canada website, these are the personal exemptions Canadians are entitled to that could be affected by the new surtax:
"Residents are going to take a look at how much time [they’re] willing to stand in the border lineup to get gas, to get milk, to get cheese," says Anita Huberman, the CEO of the Surrey Board of Trade. “We do anticipate that these tariffs could make products more expensive for Canadians, local consumers, manufacturers."
Huberman also thinks Canadians will start looking for opportunities to buy local as a result of the extra costs at the border.
"Even items like toilet paper are on the range of products–are there other brand companies that sell toilet paper that can be bought locally?"
Despite the ongoing trade war between Canada and the U.S., Huberman believes Canadians will likely only feel the effects short-term. She says that since the Canadian government has chosen to include items on the tariffs list that are also "Canadian domesstically-produced alternatives," people will not be immediately penalized the by recent changes.