As Canadian shoppers prepare for their next trip to the United States, they’ll face a new financial hurdle at the border. The Canadian government has implemented a 25% tariff on U.S. goods effective March 13, 2025. This new surtax applies to $29.8 billion worth of U.S. imports and will remain in place until the U.S. eliminates its tariffs on Canadian steel and aluminum.
Canadian shoppers beware: a 25% tariff on U.S. goods awaits at the border starting March 13, 2025.
The tariff affects a wide range of products that Canadians typically purchase during cross-border shopping trips. Food items, clothing, household goods, automobiles, electronics, furniture, and personal care products from the U.S. will all cost more. This 25% surtax will be charged on top of regular duties and taxes.
Cross-border shoppers should be aware that the tariff applies to purchases exceeding personal exemption limits. These limits haven’t changed: there’s no exemption for trips under 24 hours, a $200 CAD limit for trips between 24-48 hours, and an $800 CAD limit for trips longer than 48 hours. The tariffs will be charged on the value exceeding these exemption limits.
When crossing back into Canada, travelers must declare all purchases to the Canada Border Services Agency and present receipts for goods acquired abroad. The 25% surtax will be collected at the point of entry. Online purchases from U.S. retailers will also face the tariff, with collection occurring upon delivery.
The economic implications of this measure are significant. Canadian retailers may see a boost as shoppers stay home, while border towns reliant on cross-border commerce face challenges. Many consumer goods will likely increase in price, and businesses importing U.S. goods may experience squeezed profit margins. The typical American family is already expected to face annual costs increase of $1,600 to $2,000 due to the U.S. tariffs.
The tariff also applies to items shipped through mail or courier services from U.S. retailers. Consumers may notice higher prices, possible supply chain disruptions, and product shortages for affected goods. The measure represents a direct response to U.S. tariffs and signals escalating trade tensions between the two nations.
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