RICHMOND, B.C. – The RV Dealers Association of Canada has released the following “critical update” regarding the Government of Canada’s recently imposed counter-tariffs on U.S.-made Recreation Vehicles, which took effect on April 9, 2025.
“We are actively advocating on your behalf,” said Eleonore Hamm, president of the RVDA of Canada. “It is crucial to determine if your business number is included in the schedule of the Remission Order. Regardless, your individual resubmission of a broader remission request, based on the criteria outlined earlier, remains vital. If you need guidance on the remission request process or support with your submission, reach out to the RVDA of Canada without delay.”
The counter tariffs imposed – set at 25 percent – apply to non-CUSMA-compliant U.S.-made vehicles and the non-Canadian/non-Mexican content of CUSMA-compliant U.S.-made vehicles originating from the U.S.
IMPACT ON YOUR BUSINESS: This new tariff structure will have a direct and significant impact on your business. We anticipate substantial increases in costs, disruptions to existing supply chains, and a considerable reduction in the affordability of RVs for Canadian consumers. As approximately 95 percent of RVs sold in Canada are sourced from the U.S., these tariffs present a serious threat to the viability of dealerships across the country. Importantly, there are no ownership exemptions, meaning all RV dealerships will be affected.
ACTION REQUIRED: Resubmit Your Remission Request
The Government of Canada has a process called tariff remission, which can provide relief from paying or a refund of these tariffs. Here’s what you need to know: Framework in Place: The government has outlined how it will review remission requests for tariffs on U.S. goods, effective March 4, 2025. Potential Relief: Remission can either waive the tariff payment or refund tariffs already paid under specific conditions. Future Tariffs: This process would also apply to any future tariffs on other goods, with details to follow.
GROUNDS FOR REMISSION CONSIDERATION: (for tariffs effective March 4, 2025): The government will consider remission requests in the following key situations: No Domestic/Non-U.S. Alternatives: When essential parts or goods cannot be sourced within Canada (nationally or regionally) or from countries other than the U.S. Severe Economic Harm: Other exceptional circumstances, reviewed case-by-case, that could significantly damage the Canadian economy.
WHY RESUBMITTING IS CRUCIAL (Tariffs Now in Effect – April 9, 2025)
If you previously submitted a remission request, please resubmit it immediately. This ensures your application is considered under the current tariff implementation and the government’s outlined framework. A 25 percent price hike on motorized RV imports could make them unaffordable for both you and your customers.
How to Submit Your Remission Request
RVDA of Canada has provided a remission request template to streamline your submission. Ensure you:
- Document economic impact on your business, including increased costs and projected losses.
- Highlight Canadian supply limitations, demonstrating an inability to source equivalent domestic products.
- Provide details on pre-existing contracts signed before tariff announcements that remain unfulfilled.
- Address consumer impact, explaining how higher prices will deter RV purchases and affect affordability.
Click here to download the remission request template
Key Considerations for Your Submission:
- Economic Impact – Outline how the 25 percent tariff will negatively affect business viability.
- Pre-existing Contracts – Provide proof of agreements signed before the tariff announcement.
- In-Transit Exceptions – Goods already en route to Canada before April 2 may qualify for an exemption. Documentation (e.g., bill of lading, cargo control documents) is required.
- Sufferance Warehouse Goods – RVs in a sufferance warehouse before April 2 may be exempt but must be moved within 30 days.
Understanding the 25% Surtax on U.S. Vehicles
As of April 9, 2025, all new and used motor vehicles imported into Canada from the U.S. are subject to a 25 percent surtax under the United States Surtax Order (Motor Vehicles 2025). This surtax is calculated based on the value of the vehicle when it crosses the border. This value is determined using standard customs rules. What Vehicles are Included? This surtax applies to a wide range of motor vehicles, including: Both new and used vehicles Vehicles with electric motors Vehicles with gasoline or diesel engines The official list of all goods subject to this surtax can be found in Schedules 1 and 2 of the United States Surtax Order (Motor Vehicles 2025). IMPORTANT NOTE: This 25 percent surtax is in addition to any other regular import duties that might apply.
United States Surtax Remission Order (Motor Vehicles 2025)
The Canada Border Services Agency (CBSA) has issued Customs Notice 25-17 regarding the United States Surtax Remission Order (Motor Vehicles 2025). This Remission Order aims to lessen the negative impacts of the surtaxes on Canadian motor vehicle companies in exceptional situations.
Key points about the Surtax Remission Order:
- Purpose: To provide relief from surtaxes paid or payable under the United States Surtax Order (Motor Vehicles 2025) on eligible goods.
- Effective Date: The Remission Order took effect on April 9, 2025, the same day the 25 percent surtax on U.S.-origin motor vehicles was implemented.
- Specific Importers: Remission is being granted to importers with specific business numbers listed in the schedule of the Remission Order, up to a maximum quantity of vehicles also specified in the schedule. This applies to tariff items listed in Schedule 1 of the Surtax Order. Excludes Personal Importations: This Remission Order does not apply to vehicles imported for personal use. CBSA Administration: The Canada Border Services Agency (CBSA) is responsible for administering this Remission Order.
CARM Procedures & Financial Impact on Dealers
Under the CBSA Assessment and Revenue Management (CARM) system, Canadian RV dealers will be required to pay the 25 percent countermeasure tariff at the time of importation, similar to a tax. The amount will be calculated based on the vehicle’s value, converted into Canadian dollars.
This process will be managed through the CARM Client Portal, now the central system for handling all duties, tariffs, and tax payments on imported goods for Canadian businesses. (Currently, Canadian RV dealers also pay HST/GST through this system.) While the wholesale cost of an RV is typically financed through floorplan arrangements with lenders, this 25 percent tariff is unlikely to be covered by those financing agreements. Instead, dealers will be required to pay it out of their own cash flow, placing a significant financial strain on their operations.
The increased costs could severely disrupt dealership operations, particularly during peak inventory periods. Additionally, if the tariffs are later removed, dealers may be left with inventory that is difficult to sell at a competitive price, further impacting profitability. Although industry associations have raised concerns with the Canadian government, no mechanism has been confirmed that would allow dealers to recover the 25 percent tariff if or when the countermeasures are lifted.
Both Canadian Recreational Vehicle Association (CRVA) and the RVDA of Canada have received strong indications that many dealers may delay or cancel orders of U.S.-built RVs until the tariff is removed. This would have significant economic and financial consequences for both Canadian and U.S. manufacturers and suppliers.
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