Canadians now have to pay new surtax at U.S. border and on packages

If you live in Canada and like to visit the U.S. to shop, you might want to factor in a new expense at the border.

The federal government has slapped a surtax on certain American goods bought by shoppers when re-entering Canada.

In an email on Friday, a spokesperson for the Canada Border Services Agency (CBSA) said the 25 per cent surtax (in addition to other applicable duties) has been effective since March 4.

"These countermeasures will apply to commercial shipments, goods imported by mail or courier, and goods imported by individual travellers above their personal exemptions," stated CBSA spokesperson Rebecca Purdy. "Surtaxes will remain in place until the U.S. eliminates its trade-restrictive measures against Canada."

Canada’s border officers are administrating and enforcing the surtax on individual travellers, commercial shipments, mail and couriers.

The CBSA says all goods entering Canada, regardless of how they enter and whether they're eligible for duty and tax-free exemptions, must be reported. The surtax for personal goods will be assessed by the CBSA at the port of entry.

"This means that individuals travelling with the goods will pay at the port of entry, and individuals shipping goods through the mail or courier will pay upon delivery," explained Purdy.

She adds that the surtax will be applied to U.S. products subject to it if a traveller doesn't qualify for or exceeds their personal exemption.

Travellers' exemptions let returning Canadian residents bring back goods up to a certain dollar amount on a duty and tax-free basis. This varies depending on the time spent outside of Canada, with limits set for tobacco, alcohol and vaping products. If you need a reminder for personal exemption limits, check out the CBSA's guide.

If you are hit with the extra charge, you can pay the surtax like customs duties and taxes are paid.

Check out the complete list of U.S. goods subject to the surtax on Finance Canada's site.

U.S. President Donald Trump officially imposed 25 per cent tariffs on all products from Canada and Mexico, along with a 10 per cent tariffs on energy, on Tuesday.

On Thursday, he then paused tariffs on some Canadian goods until April 2, but announced possible reciprocal tariffs on dairy and lumber the following day.