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 said in a recent
advisory.
The tariffs Trump imposed on Canadian goods, along with Canada’s 25 percent
counter-tariffs on U.S. products, mean snowbirds will encounter not only the usual applicable duties and taxes at the border, but also an additional 25 percent surtax on items not covered by the North American free trade agreement, the agency said.
Snowbirds can claim goods worth up to C$800 without paying duties or taxes, including the new surtax, the border agency said. The surtax only applies on the amount of goods that exceeds that value.
Goods that snowbirds can expect to pay extra for include clothing, footwear, jewelry, appliances, ceramics, and wood products, among other items.
The surtax will also be levied on various 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.
Snowbirds who are returning with less than $800 worth of goods 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, collected in the form of a surtax, are calculated as a percentage of a product’s “value for duty” before taxes, referring GST and HST, the border agency said.
For a U.S. product priced at C$50, for example, the cost would rise by 25 percent, or $12.50, due to the surtax, resulting in 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 he announced his global strategy on April 2 aimed at rebalancing trade through reciprocal U.S. tariffs. The initial tariffs he imposed on Canada—10 percent on energy and potash exports to the United States and 25 percent on other goods—which came into effect on March 4, remain unchanged. Trump said they were imposed due to his concerns about illegal migration and cross-border fentanyl trafficking. The current exemptions for items covered by the United States-Mexico-Canada Agreement (USMCA) also remain intact.
A senior White House official said that if Canada successfully addresses the challenges related to illicit drugs and migration, it would transition to the new reciprocal tariff framework of 12 percent while USMCA goods would continue to be exempt. 
