Canada Imposes 25% Surtax on U.S.-Origin Motor Vehicles

Effective April 9, 2025, the Canada Border Services Agency (CBSA) has implemented a 25% surtax on certain motor vehicles originating from the United States.  This measure is a direct response to U.S. tariffs on Canadian-made vehicles and auto parts.

 Affected Items:
The surtax applies to both new and used U.S.-origin motor vehicles, including:

  • Passenger cars, SUVs, crossovers, and vans designed to transport fewer than ten persons

  • Motorhomes, ambulances, hearses, and prison vans

  • Light-duty trucks (gross vehicle weight not exceeding 5 tonnes), including electric-only models

 Exclusions:
Certain vehicles are exempt from the surtax, such as:

  • Vehicles designed specifically for snow travel (e.g., snowmobiles) and golf carts

  • Vehicles with spark-ignition internal combustion engines of 1,000 cc or less

Importers should note that the surtax applies even if the vehicle qualifies for preferential tariff treatment under the Canada–United States–Mexico Agreement (CUSMA).  However, a portion of the vehicle's value attributable to Canadian or Mexican-origin parts may be excluded from the surtax calculation, subject to proper documentation.

For detailed information, refer to the full notice: Customs Notice 25-15.