The Surtax Storm
Canada’s retaliatory surtaxes add substantial duty burdens to a wide range of U.S.-origin products entering Canada. Products that previously entered duty-free under CUSMA now carry surtax rates that fundamentally change the economics of the purchase.
Understanding Canada’s Retaliatory Surtax Framework
The surtax applies based on country of origin, not country of shipment. U.S.-origin goods transshipped through third countries are still subject. Supply chain restructuring must involve genuine changes to where goods are produced.
Impact Assessment for Your Business
Identify which imports are U.S.-origin and within scope. Quantify the cost impact. Assess downstream effects on pricing, competitive position, and contracts.
Mitigation Strategies
Alternative sourcing from non-U.S. countries, surtax remission programs, inventory management strategies, and contract renegotiation.
Ready to Take Action?
Peacock Tariff Consulting provides the strategic analysis and compliance support Canadian businesses need to navigate retaliatory surtaxes. Contact us today.
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