The Order Amending the China Surtax Remission Order (2024), No. 2 (SOR/2026-14) sets out the latest adjustment to Canada’s tariff-remission framework tied to surtaxes imposed on certain Chinese imports. The measure represents a continuation of the Government of Canada’s broader response to what it characterizes as unfair trade practices affecting key sectors such as electric vehicles and metals. The amendment reflects an effort to maintain the protective intent of surtaxes while mitigating unintended economic consequences for Canadian firms that rely on specific imported inputs.

The policy context originates from 2024, when Canada introduced a 100% surtax on Chinese-made electric vehicles effective October 1, followed by a 25% surtax on Chinese steel and aluminum products effective October 22 of that year. These measures were enacted to counter perceived market distortions and protect domestic industry. Recognizing that some Canadian businesses could face supply shortages or binding contractual obligations, the government simultaneously established a remission framework allowing importers to seek temporary relief from surtaxes under defined conditions. This framework was first implemented through the China Surtax Remission Order (2024), which came into force on January 31, 2025, and was subsequently amended several times throughout 2025 to broaden eligibility and address ongoing industry concerns.

The 2026 amending order builds on that evolving regime by expanding both the scope and the duration of remission. Its central feature is the extension of relief measures for another year: remission that was previously set to expire on December 31, 2025, will now remain in effect until December 31, 2026 for products listed in Schedule 1 and for eligible importers identified in Schedule 2. This extension acknowledges that supply chain adjustments and domestic substitution efforts require more time, particularly in sectors where Canadian production capacity remains limited or where specialized inputs are not readily available outside China.

In addition to prolonging existing relief, the amendment broadens the list of goods eligible for remission. Nine new items have been added to Schedule 1, covering products determined to be in short supply in the Canadian market. The order also updates several product descriptions to better align with tariff classifications and technical specifications, reducing ambiguity for importers and customs officials.

The measure continues to rely on section 115 of the Customs Tariff as its legal authority, enabling the government to remit surtaxes paid or payable in specific circumstances. Importantly, remission remains targeted and conditional rather than universal. It is designed to provide temporary relief where necessary without undermining the broader trade policy objective of discouraging reliance on subsidized or unfairly priced imports.

Canada (10/2026) February 17, 2026
Disclaimer: Insights are for informational purposes only and does not reflect RRI’s official position or constitute legal opinion.