The Department of Finance Canada announced on November 9, 2026, that it has extended horizontal remission for Canadian counter-tariffs on U.S. goods by one year, to June 30, 2028.
Horizontal remission is generally available to all importers when goods meet the order’s end-use rules and other conditions. It can allow surtaxes to be waived at importation or refunded after payment.
Finance Canada says the relief now applies to U.S. goods imported for use by certain health care, public health, public safety, national defence, national security and public education entities. The update also adds all goods used by public education entities, including those mandated by Indigenous organizations.
For industrial uses, the extended relief covers steel goods used in automotive or aerospace manufacturing. It also covers non-steel goods used in manufacturing, processing, agricultural production, certain agricultural, food and beverage packaging, and mining, quarrying or oil and natural gas extraction. Goods listed in Schedule 7 are subject to earlier expiry dates.
The update sits inside Canada’s wider response to U.S. trade measures. Finance Canada says Canada imposed additional counter-tariffs of 15, 25 and 50 per cent on September 8, 2026, on products drawn from those targeted by U.S. Section 338 and Section 232 tariffs, with Canadian rates generally matching the corresponding U.S. rates.
The new carveouts have earlier deadlines
The same update adds Schedule 7 to the Consolidated List of Remission on U.S. Surtaxes. Products in that schedule are not eligible for Section 3 horizontal remission on or after the expiry date listed for the item.
Finance Canada said the removal of horizontal relief for selected goods with domestic production reflects stakeholder feedback and the goal of encouraging domestic inputs. The department said the change takes effect on December 1, 2026, for certain trailers, and on February 1, 2027, for certain aluminum wire and extrusions and paperboard products.
Schedule 7 currently lists 18 tariff classification lines. The first covers multi-ply paperboard in rolls or sheets coated with kaolin. Several lines cover extruded aluminum profiles, bars, rods, tubes and pipes; one line covers aluminum wire. Four trailer classifications under 8716.39 lose relief on December 1, 2026.
The list relies on tariff classification numbers and technical product wording. Category names by themselves may not be enough to determine whether a shipment keeps access to horizontal remission.
Targeted relief is also expanding
Finance Canada’s importer guidance says the November 9 amendments expand product- and company-specific remission under Schedules 2, 3, 4 and 4.1. The update also adds Schedule 4.2 for company-specific relief covering goods imported on or after September 8, 2026, subject to conditions.
The department said targeted tariff relief is being granted for certain imported goods that are in short supply in the Canadian market, as well as for certain companies facing exceptional circumstances, including pre-existing contractual obligations.
How importers access relief
Finance Canada guidance says importers that self-assess as eligible for existing remission do not need to submit a request to Finance Canada. Relief is claimed through the Canada Border Services Agency by adding the appropriate special authorization code to the customs declaration. Refunds can be requested through CBSA correction, adjustment and re-determination procedures.
The recordkeeping burden remains with importers. Finance Canada says there is no specific list of all goods that qualify for horizontal remission. Importers must keep the documents needed to show that their goods were used for the purposes set out in the remission order.
Finance Canada also said detailed product schedules will now be published on the department’s website and incorporated by reference into the order. The department said that change is intended to streamline the regulatory process and provide more immediate relief and greater transparency for companies and producers.
For goods in Schedule 7, importers may still assess other relief pathways. Finance Canada guidance points to Chapter 98 or 99 classifications, re-export programs, and case-by-case remission requests where existing relief does not apply.
Case-by-case remission remains narrower
For goods outside existing relief, Finance Canada says exceptional remission requests may be considered when inputs cannot be sourced domestically, either nationally or regionally, or reasonably from non-U.S. sources.
Requests may also be considered for other exceptional circumstances that could have severe adverse effects on Canada’s economy. Finance Canada says only companies registered in Canada are eligible to make remission requests.
The department assesses requests in consultation with other federal departments and may consult interested parties, including domestic producers. Any remission order also needs approval by the Governor in Council before it takes effect.
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