Some Canadian small businesses are now able to claim refunds for U.S. tariffs that were struck down as unconstitutional, despite other tariffs remaining in place for sectors such as steel and aluminum.
The Canadian Federation of Independent Business says around one-third of Canadian exporters faced levies on goods that did not qualify for an exemption under the Canada-United States-Mexico trade agreement when President Donald Trump imposed tariffs under the International Emergency Economic Powers Act last year.
These non-CUSMA compliant goods were typically subject to tariffs at a rate of 35 per cent.
Of the firms that faced tariffs, the CFIB said roughly one-quarter served as the “importer of record,” which could now qualify them for a rebate because they were legally responsible for the shipment entering the U.S.
The application system launched this week after a judge at the U.S. Court of International Trade determined in March that such companies were entitled to money back for Trump’s “Liberation Day” tariffs.
In a previous decision, the U.S. Supreme Court found that Trump usurped Congress’ tax-setting role when he set new import tax rates on products from almost every other country, citing the U.S. trade deficit as a national emergency.
Companies collectively put billions of dollars toward the tariffs, which were struck down on Feb. 20. To apply for a refund, they must submit declarations listing the affected goods. The system will refund tariffs directly to the businesses that paid them, which are not obligated to share the proceeds with customers.
U.S. Customs and Border Protection said that if it approves a claim, it will take 60 to 90 days for a refund to be issued. The agency said in court filings that more than 330,000 importers of record paid a total of about US$166 billion on 53 million-plus shipments.
It’s too soon to know how many Canadian companies might apply, said Michelle Auger, the CFIB’s director of trade and marketplace competitiveness.
The CFIB has offered guidance to Canadian small businesses on how to obtain a refund, noting the system requires firms to have a U.S. customs account and a U.S. bank account.
“For small business owners, it really is just about working with your customs broker, understanding whether or not your goods went through the border CUSMA-compliant or not, and from there assessing whether or not you paid what’s considered a sectoral tariff or the IEEPA tariff,” said Auger.
Separate tariffs on steel and aluminum, cars, softwood lumber and furniture from Canada remain in place and are not included in the rebate process.
Auger said Canadian businesses have endured significant “turbulence” trying to navigate the various levies since last year.
“The uncertainty of whether tariffs are on or off has just caused so much chaos and small businesses really have been taking the hit, have seen revenue losses, have seen lost customer contracts,” she said.
“With all of this, costs have continued to rise and then you add all the instability with the Middle East, which continues to increase costs right now, it’s just been one very roller-coaster of a ride this last year.”
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Sammy Hudes, The Canadian Press
With files from The Associated Press
This report by The Canadian Press was first published April 21, 2026.
