Canadians now have to pay a new tax at the US border & on packages — Here's how it works

If you're a Canadian who still dabbles in cross-border shopping or the occasional U.S. online order, you might want to brace yourself — your next trip or delivery might cost more than you expect thanks to Trump's tariffs and Canada's retaliatory measures.

A new surtax of 25% is now in effect on certain American goods entering Canada — including inside individual shoppers' cars, suitcases and packages — making everything from in-person purchases to online orders from the U.S. a little pricier and the option to buy Canadian more appealing than ever.

This move is part of Canada's response to ongoing trade restrictions imposed by the U.S., and according to the Canada Border Services Agency (CBSA), it applies to commercial shipments, courier deliveries and even items brought back by individual travellers who exceed their personal exemptions.

The surtax officially kicked in last week on March 4, and it's being enforced at all points of entry — meaning whether you're driving back across the border, bringing goods home on a flight or even waiting on a package at home, you could be hit with the extra charge.

CBSA spokesperson Rebecca Purdy told Narcity that the surtax will remain in place until the U.S. lifts its trade-restrictive measures against Canada.

So how does it work? Well, firstly, if you're a Canadian resident returning home from the U.S., you're allowed to bring back a certain amount of goods duty-free, depending on how long you were away.

For example, if you've been gone for more than 24 hours, you can bring home CA$200 worth of goods without paying any duties or taxes — including the new surtax. If you're away for more than 48 hours, that exemption grows to CA$800.

But if you exceed that limit and the item is on Canada's surtax list, you'll have to pay the extra 25% at the border — and that's on top of the usual duties and taxes you'd always have to pay.

And it's not just travellers who need to watch out. If you're ordering a product from the U.S. to be shipped to you and it's on the surtax list, you'll be charged upon delivery.

If you need a reminder of the full list of items subject to Canadian tariffs and the surtax, it's available on Finance Canada's website here.

Purdy clarified that goods listed in the order aren't outright banned from importation — they just come with an extra cost. For individual travellers, the surtax is assessed and collected at the port of entry. For mail and courier imports, typically the shipping company will pay the tax on your behalf and send you a bill that you'll need to pay upon delivery.

If you're planning a cross-border trip or expecting a package from the U.S., it's best to prepare ahead. The CBSA recommends having your receipts handy, checking border wait times before heading out and considering an Advance Declaration if arriving by air.

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