USA/Canada Trade War Update - US Surtax Remission Order extended
On October 17, 2025, the Department of Finance issued the following statement – Canadian businesses impacted by response to U.S. tariffs to benefit from relief – advising an extension to the available remission orders, which expired yesterday:
- The current exemption for U.S. goods used in manufacturing, processing, or food and beverage packaging has been extended for an additional two months, and now includes goods used in agricultural production.
- The temporary exemption from tariffs on imports of US goods that are used to support public health, health care, public safety and national security objectives has also been extended for an additional two months.
- In addition to these changes, further relief from Canada’s tariffs on imports from the U.S. and China have now been implemented for companies that meet strict conditions, such as demonstrating short supply or existing contractual obligations.
The Order Amending the China Surtax Remission Order (2024) and the United States Surtax Remission Order (2025) (2025-1) (the “Remission Order”) entered into force on October 15, 2025. The full text of the Remission Order can be found here, and will be published in the November 5, 2025 edition of Part II of the Canada Gazette.
The Remission Order provides relief from the payment of surtaxes at the time of importation, or the refund of surtaxes already paid, under specific circumstances. The Remission Order is structured as follows:
- Products listed in Schedules 1 and 2 are subject to broad remission for all importers, indefinitely from the time the tariffs came into effect.
- Products listed in Schedule 3 are subject to broad remission for all importers, from the time the tariffs came into effect until the date specified in column 3.
- Products listed in Schedule 4 are subject to remission by a specified importer listed in column 1 (according to business number) and subject to any other applicable condition listed in column 4, until September 1, 2025.
- Products listed in Schedule 4.1 are subject to remission by a specified importer listed in column 1 (according to business number), during the period specified in column 4, and subject to any other applicable condition listed in column 5.
- Products listed in Section 4.3 are subject to indefinite broad remission for all importers, from the time the tariffs came into effect.
The Remission Order expands the scope of relief provided under the United States Surtax Remission Order (2025), first implemented in April 2025, and amended in June 2025 (see a version current as of June 25, 2025 here).
It is important to note that, in addition to product and company-specific relief, the Remission Order also implements the following changes to the horizontal relief provided under the United States Surtax Remission Order (2025):
- Relief provided for public health, public safety and national security entities under Sections 1 and 2 has been extended to December 15, 2025.
- Relief provided for goods used in manufacturing, processing and the packaging of a food or beverage under Section 3 has also been extended to December 15, 2025, and expanded to cover goods used in agricultural production.
- 3 Subject to section 5, remission is granted of surtaxes paid or payable under the United States Surtax Order (2025-1) or the United States Surtax Order (Steel and Aluminum 2025) in respect of goods imported for use, in Canada, in the manufacture or processing of any good, in the production of any agricultural product or in the packaging of a food product or beverage.
We encourage importers to consult the Remission Order to confirm whether their products being imported are eligible for remission.
For more information, contact Brian Rowe, Director – Customs Compliance & Regulatory Affairs.
New U.S. Section 232 tariffs on imports of Timber, Lumber, and their Derivative Products
Updated Guidance and Wood Derivative list
US President Donald Trump issued Proclamation “Adjusting Imports of Timber, Lumber, and their Derivative Products into the United States” which applied the following Section 232 Tariffs, effective, October 14, 2025.
- 10 percent global tariff on imports of softwood lumber.
- 25 percent global tariff on certain upholstered furniture, which will increase to 30 percent on January 1, 2026
- 25 percent global tariff on kitchen cabinets and vanities, which will increase to 50 percent on January 1, 2026
US Customs and Border Protection (CBP) have issued CSMS #66492057 – Guidance: Section 232 Import Duties on Timber, Lumber, and their Derivative Products:
Softwood Timber and Lumber
9903.76.01: Applies to imports of softwood timber and lumber products from all countries classified under the following Harmonized Tariff Schedule of the United States (HTSUS) provisions:
4403.11.00 | 4403.23.01 | 4403.26.01 | 4406.91.00 | 4407.13.00 |
4403.21.01 | 4403.24.01 | 4403.99.01 | 4407.11.00 | 4407.14.00 |
4403.22.01 | 4403.25.01 | 4406.11.00 | 4407.12.00 | 4407.19.00 |
10 percent additional ad valorem rate of duty
Upholstered Wooden Furniture Products from All Countries other than the United Kingdom, Japan, and Member Countries of the European Union
9903.76.02: Applies to imports of upholstered wooden furniture products from all countries except the United Kingdom, member countries of the European Union, and Japan, classified under the following HTSUS provisions:
9401.61.4011 | 9401.61.4031 | 9401.61.6011 | 9401.61.6031 |
25 percent additional ad valorem rate of duty
Completed Kitchen Cabinets and Vanities and Parts from All Countries other than the United Kingdom, Japan, and Member Countries of the European Union
9903.76.03: Applies to imports of completed kitchen cabinets and vanities and their parts from all countries except the United Kingdom, member countries of the European Union, and Japan, classified under the following HTSUS provisions:
9403.40.9060 | 9403.60.8093 | 9403.91.0080 |
25 percent additional ad valorem rate of duty
Other Than Completed Kitchen Cabinets and Vanities and Their Parts from All Countries
9903.76.04: Applies to imports of products other than completed kitchen cabinets and vanities and their parts from all countries classified under the following HTSUS provisions:
9403.40.9060 | 9403.60.8093 | 9403.91.0080 |
0 percent additional ad valorem rate of duty
Upholstered Wooden Furniture Products; and Completed Kitchen Cabinets and Vanities, and Their Parts from the United Kingdom, Japan, and Member Countries of the European Union
9903.76.20: Applies to imports of upholstered wooden furniture products and completed kitchen cabinets and vanities and their parts from the United Kingdom classified under the following HTSUS provisions:
9401.61.4011 | 9401.61.4031 | 9401.61.6011 | 9401.61.6031 | 9403.40.9060 |
9403.60.8093 | 9403.91.0080 |
10 percent additional ad valorem rate of duty
9903.76.21: Applies to imports of upholstered wooden furniture products and completed kitchen cabinets and vanities and their parts from Japan classified under the following HTSUS provisions:
9401.61.4011 | 9401.61.4031 | 9401.61.6011 | 9401.61.6031 | 9403.40.9060 |
9403.60.8093 | 9403.91.0080 |
15 percent additional ad valorem rate of duty
9903.76.22: Applies to imports of upholstered wooden furniture products and completed kitchen cabinets and vanities and their parts from member countries of the European Union classified under the following HTSUS provisions:
9401.61.4011 | 9401.61.4031 | 9401.61.6011 | 9401.61.6031 | 9403.40.9060 |
9403.60.8093 | 9403.91.0080 |
15 percent additional ad valorem rate of duty
Exemption for Goods Subject to Section 232 Duties on Automobiles and Automobile Parts
If an imported good is subject to both the Section 232 duties on automobiles and automobile parts and the Section 232 duties on timber, lumber, and their derivative products, then the Section 232 duties on timber, lumber, and their derivative products are not applicable.
IEEPA Tariff Exceptions
If an imported good is subject to the Section 232 duties on timber, lumber, and their derivative products, provided for in headings 9903.76.01, 9903.76.02, 9903.76.03, 9903.76.20, 9903.76.21, or 9903.76.22, then the additional tariffs imposed by the following Executive Orders (EO) pursuant to the International Emergency Economic Powers Act (IEEPA) do not apply to such imported product:
- Additional tariff on products of Canada, pursuant to EO 14193 of February 1, 2025, Imposing Duties to Address the Flow of Illicit Drugs Across Our Northern Border, as amended (“IEEPA Canada tariffs”).
- Additional tariff on products of Mexico, pursuant to EO 14194 of February 1, 2025, Imposing Duties To Address the Situation at Our Southern Border, as amended (“IEEPA Mexico tariffs”).
- Additional Reciprocal tariffs, pursuant to EO 14257, as amended (“IEEPA Reciprocal tariffs”).
- Additional tariffs on product of Brazil, pursuant to EO 14323 (“IEEPA Brazil tariff”).
- Additional tariff on products of India, pursuant to EO 14329 (“IEEPA Russian Oil/India tariff”).
No additional Chapter 99 HTSUS provision is needed for the duty exemption for products of Canada or Mexico that are provided in headings 9903.76.01, 9903.76.02, 9903.76.03, 9903.76.20, 9903.76.21, or 9903.76.22 from IEEPA Canada tariffs in headings 9903.01.10 and 9903.01.13 or IEEPA Mexico tariffs in headings 9903.01.01 and 9903.01.05.
To declare products provided for in headings 9903.76.01, 9903.76.02, 9903.76.03, 9903.76.20, 9903.76.21, or 903.76.22 exempt from other tariffs, use:
- Heading 9903.01.33 for the exemption from the IEEPA Reciprocal tariffs in headings 9903.01.25 and 9903.02.02-9903.02.73.
- Heading 9903.01.83 for the exemption from the IEEPA Brazil tariff in heading 9903.01.77.
- Heading 9903.01.87 for the exemption from the IEEPA Russian Oil/India tariff in heading 9903.01.84.
Removal of Certain Products from Reciprocal Tariff Exception
Effective with respect to goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern Daylight Time on October 14, 2025, 158 Chapter 44 subheadings are removed from the list of Annex II Reciprocal exceptions and will be subject to Reciprocal tariffs.
Drawback
Drawback continues to be available, in accordance with applicable regulations in 19 C.F.R. part 190, for eligible claims with respect to the duties imposed pursuant to Proclamation 10976.
For more information, contact Brian Rowe, Director – Customs Compliance & Regulatory Affairs.
US Freight Services – Expertise You Can Rely On
At Universal Logistics, our US Freight Services Team — based in Cleveland, Ohio — specializes in all aspects of domestic and international freight management, with a focus on optimizing freight movement and controlling costs.
Our experienced professionals coordinate air, ocean, and truck freight, working seamlessly with our Freight Pricing and Freight Solutions teams to provide clients with a one-stop shop for complete supply chain management.
Supported by a global network of trusted freight partners, we offer extensive international reach and handling capabilities across every major trade lane.
As experts in US import and export regulations, our team ensures your shipments move smoothly through the complex and ever-evolving landscape of customs and compliance — both domestically and abroad.
We’re fully equipped to manage dangerous goods, temperature-controlled cargo, project freight, FCL (Full Container Load), and LCL (Less than Container Load) shipments. In addition, we can arrange comprehensive cargo insurance to safeguard your shipments from pickup to delivery.
This combination of knowledge, experience, and global connections gives our clients the confidence to entrust their freight operations to Universal Logistics. The result? Greater efficiency, cost savings, and complete visibility at every stage of the journey.
Learn more about our US Freight Services and how we can help streamline your logistics by visiting our web site.
CBSA Annual Review of Financial Security
The Canada Border Services Agency (CBSA) conducted an annual review of the financial security requirement
for each importer’s RM business account on October 20, 2025. This process, which runs through the CARM Client Portal (CCP), is designed to recalculate the minimum financial security required for importers to maintain their Release Prior to Payment (RPP) privileges for 2026. This will be an annual review on October 20th of each year.
The RPP program enables importers to have their goods customs released before paying duties and taxes.
The CBSA reviews historical import activity over a 12 month period (October 20th of the previous year to October 19th of the current year) to identify the single highest month of total duties and taxes owed which determines the importer’s required security amount.
When accessing CARM, importers will see the following message:
Please refer to the CBSA’s Q&A for more details.
Importers will be notified of their new security requirement via CARM. Only those importers requiring a security adjustment will receive a notification.
Importers will have until January 15, 2026, to post any required increase in their financial security.
Failure to comply with the new, higher security requirement by the deadline will result in the suspension of RPP privileges, which then requires payment of duty/tax prior to obtaining release of goods.
To remain compliant and continue to benefit from RPP privileges, you should take the following next steps:
- Log into the CCP to check for new financial security notifications.
- Compare the new requirement against your current posted bond or deposit.
- Coordinate with your customs broker or surety provider to adjust your bond or top up your deposit.
- Ensure the increased financial security is accepted in the CCP before the January 15, 2026 deadline.
For more information, contact Brian Rowe, Director – Customs Compliance & Regulatory Affairs.
Truck Freight Update: U.S. Imposes 25% Tariff on Medium-Heavy Trucks
The US government has announced a new 25% tariff on imported medium- and heavy-duty trucks, marking a major shift for North American trade and logistics. The move comes as the Canada–United States–Mexico Agreement (CUSMA/USMCA/TMEC) undergoes review, sparking renewed discussion about regional manufacturing rules.
Why This Matters
The United States imports most of its medium and heavy trucks from Mexico, a key production hub for North American automakers. Under USMCA, these vehicles can move tariff-free — but only if they meet strict rules of origin.
Currently, at least 64% of a truck’s value must originate within North America, a threshold that will rise to 70% in the coming years. In addition, key components like engines, axles, and transmissions must contain at least 75% North American content, and 70% of steel and aluminum must be sourced domestically.
Who’s Affected
Trucks that fail to meet these content requirements are no longer exempt under USMCA’s tariff-free framework. As a result, President Trump’s newly imposed 25% tariff could apply even to vehicles produced in Mexico or Canada if they include too many imported components from outside the region. This development underscores the importance of supply chain transparency and compliance with regional content rules for manufacturers and importers alike.
Companies that rely on imported truck equipment or parts may face significant cost increases, making customs planning and documentation accuracy more critical than ever.
Looking Ahead
As trade policies continue to evolve, businesses in the logistics and automotive sectors should monitor tariff changes closely and consult with their customs brokers to ensure compliance. Strategic sourcing and proactive trade management can help minimize the impact of shifting trade policies on operations and profitability.
For more information, contact Melanie Basu, Truck Services.
Shipping Corporate Gift Baskets Across the Border: What You Need to Know
The holidays often bring an uptick in cross-border shipments, especially when it comes to sending or receiving gift baskets.
Whether you’re shipping to Canada or the United States, it’s important to understand that even a simple gift basket can raise complex import and customs issues.
Shipping Gift Baskets to Canada
If your gift basket contains food items, it falls under the Canadian Food Inspection Agency (CFIA) regulations. Importers must hold a valid Safe Food for Canadians Licence (SFCR), and the shipment must move through the Canada Border Services Agency’s (CBSA) commercial stream — even if the shipment is a gift.
Alcoholic beverages are even more restricted. These can only be cleared through the provincial liquor control boards and are subject to significant duties and excise taxes. If your gift includes wine, beer, or spirits, consider purchasing from a Canadian supplier or having a local retailer fulfill the order on your behalf.
To avoid delays, make sure customs clearance is arranged before shipping, and keep detailed documentation for all items included in the basket. If you’re set on sending a gift basket into Canada, it may be easier to focus on non-food items such as candles, mugs, or kitchen accessories, which are less regulated and less likely to be delayed.
Shipping Gift Baskets to the United States
When sending a gift basket from Canada into the U.S., every item must be properly classified — even if shipped together as a single basket. U.S. Customs requires that all components be declared individually with their Harmonized Tariff Schedule (HTS) codes.
Some products also require reporting to Partner Government Agencies (PGAs) such as:
- FDA – for food, cosmetics, and related goods
- USDA – for plant- or wood-based materials (including baskets made from plant fibres)
- EPA – for items like paints, aerosols, and certain pens or nail polishes
If your basket includes textile goods, they must clearly display the manufacturer’s name and address.
Be mindful of who the items are being sent to.
For formal entries (shipments valued over US$2,500, or over US$250 for items subject to trade remedies), the consignee’s federal identification number is required — an EIN for companies or an SSN for individuals.
Finally, note that goods subject to trade remedies such as Section 232 (national security tariffs) or Section 301 (China-related tariffs) can trigger higher duties, even on shipments that might otherwise seem straightforward.
The bottom line:
Gift baskets crossing borders aren’t as simple as they look. Always verify import regulations before you ship — or better yet, work with a customs professional who can ensure your thoughtful gift doesn’t get stuck at the border.
For more information, contact Ivy Woo, Manager – Customs Consulting Services.
Global Spotlight Quiz
Name the biggest port in Malaysia
- The country’s premier port, handling a large part of the nation’s international maritime trade.
- Located close to the capital, Kuala Lumpur.
- Known as “Port Swettenham” during colonial times, it obtained its current name in July 1972.
- The port handles exports of commodities such as timber, automobiles, rubber, liquid bulk such as latex, palm and coconut oil, petroleum goods and fuel, as well as imports of steel coils, rods, wires, billets, fruits, grains, machine equipment, etc..
- While not a tourist destination, the city’s main attraction is the “Heritage Walk”, a self-guided tour of the town’s historical quarters.
Answer: Port Klang, Malaysia
For more information about shipping freight to or from this city, contact Monserrat Vazquez, Manager – Freight Solutions.
Quick Tip
Carefully inspect all freight to identify deficiencies in packaging
Problems that seem small at the time of loading can get much worse in transit, sometimes resulting in damage to the entire load. For example, a small leak can contaminate the whole shipment; a collapsed carton can let the whole shipment move around enough to damage many other cartons.
Proper packaging helps protects your shipments from preventable cargo losses.
At Your Service
US Freight Services Team
Pamela Randolph & Alexis Wanzo
Universal’s US Freight Services team, led by Pamela Randolph, Office Manager – Cleveland, has the experience and knowledge to deal with all international and domestic freight handling requirements for our clients, providing peace of mind and stability as we navigate the volatile world of global shipping.
With their focus on the US market, our team in Cleveland, Ohio ensures our client’s cargo moves efficiently and economically, at the same time providing guidance and visibility at all times. This can only be accomplished by taking full control of our client’s US freight requirements, and our US Freight Services team is experienced and eager to take on this role.
For more information on our US freight service, contact Pamela Randolph or Alexis Wanzo.
SMART Logistics
Controlling how freight moves through your supply chain could save you thousands – or more.
Working with us means someone always asks: how can we make this shipment better?
Single-sourced trucking, customs clearance and distribution to expedite your freight shipments between the U.S. and Canada.
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