The Recreation Vehicle Dealers Association (RVDA) of Canada provided the following update to its members regarding the U.S.-Canada tariffs and its effects on the RV industry:
The U.S. government has announced it will impose 25% tariffs on imports from Canada and Mexico. The United States Surtax Order (2025) provides information on the application of the surtax order on certain goods originating in the United States (U.S.).
RVDA of Canada said it remains committed to advocating for policies that protect and support the RV industry. “Please consult the Member Tariff Advocacy Guide to help you engage with policymakers and stakeholders on this critical issue,” the association said.
Key Points:
- Effective March 4: The U.S. will impose a 25% surtax on all products imported from Canada, including both finished goods and raw materials. This tax will be collected from the importing company.
- Canada’s Response: Effective March 4, select U.S.-origin products entering Canada will be subject to a 25% surtax, applied to the importing company.
- Further Canadian Tariffs: A second round of tariffs at the 25% rate will be placed on C$155 billion on products of U.S.-origin in three weeks.
- No Business Ownership Exemptions: The tariffs apply regardless of whether the importing company is U.S.- or Canadian-owned.
- Parent-Company Transfers Impacted: Internal transfers between a U.S. company and its Canadian subsidiary (or vice versa) will still be subject to tariffs.
- Remission Framework: The Federal Government has announced a remission framework to help importers who may need to seek transitional relief from tariffs.
Affected Products:
A full list of products affected by Canada’s March 4 tariffs can be found here.
For the second stage of Canadian tariffs, a 21-day public comment period will precede implementation. Submissions will be accepted until March 25. This phase is expected to impact a broader range of products, including passenger vehicles and trucks, including electric vehicles, steel and aluminum products, certain fruits and vegetables, aerospace products, beef, pork, dairy, trucks and buses, recreational vehicles, and recreational boats.
List of products under review for second stage of tariffs
Exceptions to Surtax
The surtax will not apply to U.S. goods that are in transit to Canada on the day on which the surtax comes into force. This includes goods that were in transit before the surtax comes into force. For the purpose of this Customs Notice, ‘in transit to Canada’ refers to goods bound for but not yet arrived in Canada, and under the control of a carrier. Importers must have proof in their possession that such goods were in transit to Canada in order to demonstrate that the surtax is not applicable. Such proof may include the following documentation: shipping documents (for example, a bill of lading), report of entry documents, and cargo control documents. Such proof may be requested at any time by a CBSA officer.
The surtax will not apply to U.S. goods that enter a Sufferance Warehouse on or before the day on which the surtax comes into force and subsequently enter the commerce of Canada (exit the sufferance warehouse).
“It is our understanding that ‘there is no time limit set by CBSA as to how long goods remain in transit or in a sufferance warehouse in order to benefit from not having to pay the surtax. However, bonded warehouse regulations state that goods can only remain in the sufference warehouse 30 days before goods should be cleared customs or they go to queen’s bond, unless otherwise arranged with the warehouse,’” RVDA of Canada said.
Next Steps:
- The RVDA of Canada will provide further updates as they become available.
- Offer a webinar to clarify the tariff remission process.
- The association is actively engaging with government officials and industry stakeholders on both sides of the border to advocate for de-escalation and exemptions.
- The association is also urging the Government of Canada to exclude RVs from the second stage of tariff due to the severe economic harm this would impose on Canadian businesses and consumers.
“We recognize the potential impact of these changes and will keep you informed as more details emerge. Please do not hesitate to reach out with any questions or concerns,” said RVDA of Canada President Eleonore Hamm.
