In recognition of the United States’ continued approach to allowing most Canadian goods to enter the U.S. tariff-free under the Canada-United States-Mexico Agreement (CUSMA), the Government of Canada has amended its trade measures. Effective September 1, 2025, Canada has removed the majority of counter tariffs introduced in March 2025 on U.S. imports.
Key Measures
- Counter tariffs on most U.S. goods have been lifted as of September 1, 2025.
- Sector-specific tariffs on steel, aluminum, copper, and certain motor vehicles will remain in place. These targeted measures reflect the fact that the United States continues to apply tariffs in these sectors, without providing CUSMA-based exemptions for Canadian goods.
Clarification on CUSMA Qualification and Surtax Exemption
While the Prime Minister previously indicated that goods must qualify under CUSMA to be exempt from the 25% surtax, the Canada Border Services Agency (CBSA) has clarified that the surtax is being removed for all U.S. goods outside of the designated sectors, regardless of whether they carry CUSMA certification.
As stated by the CBSA:
“The amending order repeals the broad U.S. surtax (2025-1) and narrows the measures to sector-specific orders only. That means, as of the retroactive dates, only steel, aluminum, copper, and certain motor vehicles remain subject to a 25% surtax. It does not impose a general surtax on all U.S. goods, nor does it create a blanket CUSMA-based exception. Instead, goods outside those specific sectors simply revert to normal MFN tariff treatment under the Customs Tariff. The Prime Minister’s statement about retaining tariffs on steel, aluminum, and autos lines up with this legal text, but it does not establish any across-the-board surtax tied to CUSMA qualification.”
Additional Resources
- A revised list of products subject to counter tariffs, effective September 1, 2025, can be found here:
- Updates have been made to the following Customs Notices:
- Full text of the Order-in-Council: