A tariff is collected from the importer, not the exporter. That one fact explains most of what is happening on both sides of the Canada–US border right now.
The legal answer
When goods cross a border, the importer of record — the business bringing the goods in — pays the duty to the customs authority: US Customs and Border Protection for goods entering the US, the Canada Border Services Agency for goods entering Canada. The foreign seller does not remit the tariff.
The commercial answer
Who ultimately bears the cost is a negotiation. An importer facing a new 50% duty can absorb it, pass it to customers through prices, push suppliers for discounts, reduce order volumes, or switch sourcing — and in practice the burden gets split. That is why Canadian exporters feel US tariffs despite never writing a cheque to CBP: their US buyers renegotiate or buy less.
Applied to this trade war
- US 50% tariffs on Canadian goods (in effect since Aug 22): paid by US importers; felt by Canadian exporters through pricing pressure and lost volume.
- Canada’s counter-tariffs (starting Sept 8): paid by Canadian importers of US goods — which is why the remission, drawback, and duties-relief mechanisms matter to Canadian businesses, and why our checker exists.
One more wrinkle: a surtax is calculated on top of any regular duty otherwise owed, and applies based on the origin of the goods — not the country they shipped from.
Sources: CBSA — importation and accounting requirements; CBP — basic importing and duty liability; Government of Canada customs notices.
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