Canadians who chose to avoid the cold winter months by travelling to the United States may find themselves facing extra expenses when they return home, the federal border agency is warning.
Tariffs introduced by U.S. President Donald Trump could increase costs for snowbirds at the border, depending on the items they choose to bring home, the Canadian Border Services Agency (CBSA) said in a recent advisory.
The tariffs Trump enacted on Canadian goods, along with Canada’s counter-tariffs on certain U.S. products, mean snowbirds will encounter not only the usual duties or taxes at the border but also an additional surcharge on items not covered under the North American free trade agreement, the agency said.
Snowbirds can claim goods worth up to CA$800 without paying duties or taxes, including the new surtax, the border agency said. The surtax only applies on the amount of goods that exceed that amount.
Goods that snowbirds can expect to pay extra for are clothing, footwear, jewellery, linens and other textiles, appliances, ceramics, and wood products.
The extra charge will also be levied on a number of foods and beverages including certain meats, eggs, and various dairy products like milk, cream, cheese, yogurt, and butter. It will also apply to certain berries and citrus fruits, melons, peaches, beans, tomatoes, honey, chocolate and confections, coffee, tea, oats, pasta, rice, spices, and cooking oils.
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A complete list of food products and other goods subject to the 25 percent tax are available online.
Snowbirds who are returning with less than $800 worth of goods, however, can avoid the extra fees.
“Remember that residents of Canada have personal exemptions that allow them to bring goods, including alcohol and tobacco (up to a certain value), back to Canada without paying regular duty and taxes,” the border agency said.
“For example, if you have been away for 48 hours or more, you can claim goods worth up to CAN$800 without paying duties or taxes, including the new surtax. The surtax only applies on the amount of goods that exceeds your personal exemption.”
How to Calculate the Tax
Canadian residents can determine how much they will owe on goods in advance to ensure there are no surprises at the border.
The 25 percent tariffs are calculated as a percentage of a product’s value for duty, before GST and HST, the border agency said.
If a product in the United States is priced at $50, the total expense would rise by $12.50 following the addition of a 25 percent tariff for a total cost of $62.50 plus GST or HST.
In Ontario, where HST is 13 percent, the final cost of the $50 American product would be $70.63.
Canadians returning home must provide proof of origin for any goods that surpass their personal exemption limits, the agency said. Receipts for all items brought into the country must also be readily accessible.
Trump did not introduce new tariffs on Canada this month when announcing his global strategy on April 2 aimed at rebalancing trade through reciprocal U.S. tariffs. The 10 percent tariff on energy imports from Canada and the overall 25 percent tariff on Canadian goods due to Trump’s concerns about illegal migration and cross-border fentanyl trafficking remain unchanged. The current exemptions for items covered by the United States-Mexico-Canada Agreement (USMCA) also remain intact.
A senior White House official said if Canada successfully addresses the challenges related to fentanyl and migration, it would transition to the new reciprocal tariff framework of 12 percent while USMCA goods would continue to be exempt.
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