Toronto, April 10, 2025
Effective Wednesday, April 9th, in response to the US tariff on Canadian-made vehicles and parts, Canada is applying a 25 percent tariff to US-made motor vehicles under the United States Surtax Order (Motor Vehicles 2025).
Both new and used motor vehicles are subject to the surtax, including motor vehicles with electric motors and motor vehicles with internal combustion piston engines. Motor vehicles subject to the surtax may include the following:
- Motor cars and other motor vehicles principally designed for the transport of less than ten persons, including the driver. Examples of subject goods include passenger cars, including racing cars and stations wagons; other cars, including crossovers, sport utility vehicles and passenger vans; motorhomes; and ambulances, hearses or prison vans.
- Motor vehicles for the transport of goods with a gross vehicle weight not exceeding 5 tonnes, other than those for conversion to ambulances, and motor vehicles for the transport of goods with only electric motor for propulsion.
For clarity, motor vehicles not subject to the surtax include, but are not limited to, vehicles specifically designed for travelling on snow, golf cars and similar vehicles (goods of Tariff Item No. 8703.10); and motor vehicles with only spark-ignition internal combustion piston engine of a cylinder capacity not exceeding 1,000 cc (goods of Tariff Item No. 8703.21).
The surtax applies even if the motor vehicle qualifies for preferential tariff treatment under the Canada–United States–Mexico Agreement (CUSMA).
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
