IEEPA Tariffs Ruling: What It Means for Canadian Businesses
May 04, 2026
read
Key Takeaways on the IEEPA Tariffs
On February 20, 2026, the U.S. Supreme Court struck down all IEEPA-based tariffs in Learning Resources, Inc. v. Trump, ruling that the President lacks authority to impose tariffs under the International Emergency Economic Powers Act. The decision made headlines globally but its implications for Canadian businesses are more nuanced than they appear.
The critical distinction:
Section 232 of the Trade Expansion Act, not IEEPA imposed the most damaging tariffs to Canada on steel, aluminum, autos, and lumber.
What the ruling does create is a refund opportunity for Canadian companies that were paying IEEPA-related duties as importers of record in the United States a separate situation that Leyton’s U.S. trade team can assess.
For most Canadian businesses, the primary recovery opportunity remains closer to home: Canada’s own surtax remission framework, administered by the CBSA.
Canada’s Surtax Landscape: The Real Opportunity
In response to U.S. trade measures, the Government of Canada introduced retaliatory surtaxes on U.S. imports beginning in March 2025. A remission framework was established alongside these measures but eligibility criteria, documentation requirements, and filing deadlines are complex, and many businesses have left recoverable funds unclaimed.
Active surtax regimes:
in force March 4, 2025; largely repealed September 1, 2025 for CUSMA-compliant goods, but remission claims for duties paid before that date remain open 25% surtax on general U.S. goods
still active; remission available for qualifying importers 25% surtax on U.S. steel, aluminum & related products
still active; remission available for eligible CUSMA-compliant vehicles imported before April 8, 2026 25% surtax on U.S.-made vehicles
in force December 26, 2025; new remission framework established February 2026, the clock is running 25% global surtax on steel derivative goods
Are You Leaving Duty Refunds on the Table?
If your business imported goods from the United States in 2025 or early 2026, you may have paid surtaxes you didn’t have to or that you’re now entitled to recover. Leyton helps Canadian importers navigate the remission process and claim back what they’re owed.
Do You Qualify?
Canadian businesses may be eligible for surtax remission or refunds if they:
● Imported goods from the U.S. between March 2025 and today
● Operate in manufacturing, processing, food & beverage, agriculture, healthcare, or public safety
● Purchased U.S. products due to short supply, contractual obligations, or lack of alternative sources
● Import steel or steel derivative goods for use in Canadian operations
● Are an auto importer or fleet operator sourcing CUSMA-compliant U.S. vehicles
The Remission Process: More Complex Than It Looks
Claiming remission isn’t automatic. The right path depends on the status of each entry:
Situation
Path to Recovery
Surtax not yet paid (prospective)
Claim remission at time of importation via CAD in CARM
Surtax paid, payment not yet due
Submit a correction in CARM before the CAD payment due date
Surtax paid, payment due date passed
Submit an adjustment in CARM to request a refund
Non-commercial goods
Submit an informal adjustment request form directly to CBSA
All claims must be filed within two years of the importation date. Missing this window means forfeiting your refund permanently.
What Leyton Does For You
Eligibility Assessment: We review your import history, product classifications, and operational context to identify every entry that qualifies for remission including categories you may not have considered.
CARM Navigation: CARM is complex. We handle corrections, adjustments, and special authority codes so your filings are accurate and timely, reducing the risk of CBSA reassessment or penalties.
Documentation Management: We gather, organize, and validate all required records: commercial invoices, CADs, B3 forms, purchase orders, contracts, and evidence of end use.
Regulatory Compliance: Every claim is built in accordance with CBSA requirements under the Customs Tariff remission framework, minimizing exposure to audits, penalties, or interest charges.
Maximized Recovery: We ensure no eligible remission is overlooked and manage your claims to recover the full amount as quickly as possible.
Success-Based Fee: You pay only if we recover funds. No upfront cost, no risk.
Operating on Both Sides of the Border?
If your business has entities or operations in both Canada and the United States — whether a Canadian parent with a U.S. subsidiary, a U.S.-headquartered company with Canadian operations, or a business that imports actively in both countries — your tariff recovery opportunity is likely larger than you think, and more complex to navigate alone.
Some Canadian companies may also be impacted if they:
● Import goods into the United States on behalf of clients
● Act as importer of record in the U.S.
● Ship goods to a U.S. entity or subsidiary
In these cases, duties paid under IEEPA may be eligible for refund.
We coordinate between our Canadian and U.S. trade teams to map your full cross-border exposure, identify every recoverable amount, and manage both processes in parallel. No duplication of effort on your end.
Remission filing window (all surtaxes): You must file all remission claims within two years of each importation date — the earlier you act, the more entries remain in scope within that 2‑year window.
Steel derivative goods: A new remission framework is in force as of February 2026, and many businesses are still unaware they qualify.
Motor vehicles (CUSMA‑compliant): Remission is available for eligible CUSMA‑compliant vehicles imported before April 8, 2026.
U.S. IEEPA refunds: A 180‑day protest window applies to liquidated entries, making timelines especially time‑sensitive for any U.S.-side exposure.
Frequently Asked Questions
Doesn’t the U.S. Supreme Court ruling solve this for Canadian companies?
Not directly. The ruling invalidated IEEPA tariffs imposed by the U.S. — but the tariffs that hurt Canada most (steel, aluminum, autos, lumber) are imposed under Section 232, which was unaffected. For most Canadian businesses, the remission opportunity lies within Canada’s own surtax framework. That said, if your business also imports into the U.S. as importer of record, or has a U.S. entity that did, you may have a U.S.-side refund claim as well.
What is surtax remission?
Remission is a government-granted exception that relieves a business from paying surtaxes, or refunds surtaxes already paid, when specific eligibility criteria are met. It is administered by the CBSA under section 115 of the Customs Tariff.
Can we handle this ourselves or through our customs broker?
You can, but the process involves CARM system access, proper use of special authority codes, precise documentation standards, and awareness of multiple overlapping remission orders. Leyton works alongside your existing broker we don’t replace them. We add a layer of review, accuracy, and recovery optimization they may not be resourced to provide.
What documents do I need?
Typically: commercial invoices, Commercial Accounting Documents (CADs), B3 import forms, purchase orders or contracts, and evidence of end use (e.g., manufacturing, food processing). Leyton helps you gather and organize everything.
How long does the process take?
It depends on entry status and CBSA processing times. Prospective claims are fastest. Retroactive adjustments take longer. Leyton manages all deadlines to ensure no recovery opportunity is missed.
Is there a risk of triggering a CBSA audit?
Improperly filed claims can attract CBSA scrutiny. That’s precisely why working with specialists matters every claim we file is compliant and fully supported by documentation.
How much does Leyton charge for IEEPA Tariffs recovery?
Leyton works on a success-based model. You pay a fee only if remission is successfully recovered. There is no upfront cost.
