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Impact of Tariffs on Canadian Snowbirds Returning Home


Canadian travelers who opted to escape the harsh winter by visiting the United States may encounter additional costs upon their return home, as warned by the federal border agency.

Tariffs imposed by U.S. President Donald Trump could lead to higher expenses for snowbirds at the border, depending on the items they bring back, the Canadian Border Services Agency (CBSA) mentioned in a recent advisory.

The tariffs implemented by Trump on Canadian goods, along with Canada’s retaliatory tariffs on specific U.S. products, mean that snowbirds will face not only the usual duties or taxes at the border but also an additional surcharge on items not covered by the North American Free Trade Agreement, the agency explained.

Snowbirds can bring goods worth up to CA$800 without incurring duties or taxes, including the new surcharge, the border agency stated. The surtax is applicable only to the amount of goods exceeding that limit.

Items that snowbirds might have to pay extra for include clothing, footwear, jewelry, linens, appliances, ceramics, and wooden products.

The additional charge will also be added to various foods and beverages such as specific meats, eggs, dairy products like milk, cream, yogurt, and butter, as well as certain fruits, vegetables, grains, spices, and oils.

Snowbirds bringing back goods worth less than $800 can avoid the additional fees.

“Keep in mind that Canadian residents have personal exemptions permitting them to bring goods, including alcohol and tobacco (up to a specific value), into Canada without paying regular duties and taxes,” stated the border agency.
“For instance, if you have been away for 48 hours or more, you can declare goods worth up to CA$800 without incurring duties or taxes, including the new surcharge. The surcharge applies only to the excess amount beyond your personal exemption.”

How to Calculate the Tax

Canadian residents can determine the anticipated charges on goods in advance to avoid surprises at the border.

The 25 percent tariffs are computed as a percentage of a product’s value for duty before GST and HST, the border agency explained.

If a product in the U.S. costs $50, the total amount would increase by $12.50 with the addition of a 25 percent tariff, resulting in a total cost of $62.50 plus GST or HST.

In Ontario, where HST is 13 percent, the final price of the $50 American product would be $70.63.

Canadian residents returning home must provide evidence of origin for goods exceeding their personal exemption limits, the agency instructed. Receipts for all items brought into the country should also be easily accessible.

Trump did not impose new tariffs on Canada this month when unveiling 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 mentioned that if Canada effectively addresses issues related to fentanyl and migration, it would shift to the new reciprocal tariff system of 12 percent while USMCA goods would remain exempt.



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