US-Made Staff Apparel: 50% Canadian Surtax Impact
October 8, 2026
What changed for Canadian staff-apparel buyers
US-made staff T-shirts, hoodies and jackets now carry a 50% Canadian surtax when they match specified tariff classifications. The charge applies to qualifying U.S.-origin goods, not automatically to every garment purchased from a U.S. vendor.
As of October 2026, Canada has charged surtaxes of 15%, 25% or 50% of the value for duty on listed U.S.-origin goods since September 8, 2026 (United States Surtax Order (2026)). Several classifications commonly used for staff uniforms are on Schedule 3 at 50%.
The measure is an ad valorem charge, meaning the percentage is applied to the value for duty rather than assessed as a fixed amount per garment. It forms part of Canada’s retaliatory tariff measures in the broader Canada-US trade dispute.
That distinction matters. A T-shirt sold by a U.S. company may have been manufactured elsewhere and may not be U.S.-origin for this surtax. Conversely, qualifying US-made apparel does not avoid the measure merely because it is shipped through another country.
For Canadian buyers, the practical question is therefore not “Is the vendor American?” It is “Where does this particular garment originate, and under which tariff item is it classified?”
Which staff garments are subject to the 50% surtax?
The 50% surtax list includes specified cotton T-shirts, cotton or man-made-fibre sweatshirts and hoodies, man-made-fibre outerwear, and certain tracksuits and similar garments. Polos and caps are not on the current list, although importing them still involves customs processing and possible border costs.
Cotton T-shirts
Cotton knitted or crocheted T-shirts under tariff item 6109.10.00 are listed at 50% when they are U.S.-origin. This can affect standard crew-neck staff T-shirts, event shirts and promotional uniforms imported as blanks before decoration.
Screen printing, embroidery or heat-transfer decoration performed after import generally does not change the origin of the underlying garment. A Canadian buyer importing U.S.-made blanks may therefore incur the Canadian surtax before a logo is added.
Sweatshirts and hoodies
Cotton and man-made-fibre sweatshirts and hoodies under tariff items 6110.20.00 and 6110.30.00 are listed at 50% when U.S.-origin. Buyers should not assign a rate based on the marketing word “hoodie” alone.
Construction and fibre content matter. A pullover, full-zip garment and jacket-style top may not necessarily have the same classification. Suppliers should provide an accurate product description, fibre composition and country of origin.
Jackets and tracksuits
Man-made-fibre jackets under 6201.40 and 6202.40 are on Schedule 3 at 50% when U.S.-origin. Tracksuits and similar garments under 6211.32, 6211.33 and 6211.43 are also listed.
These categories can cover garments used by outdoor crews, delivery teams, event personnel and customer-facing staff. Because outerwear construction varies widely, Canadian importers should confirm the classification with a customs broker rather than relying on a catalogue description.
Polos and caps
Polos under heading 6105 and caps under heading 6505 are not on the current surtax list. That does not make an order from a U.S. vendor equivalent to a domestic purchase.
The shipment remains a commercial import requiring a Canadian customs entry. The buyer may also encounter ordinary import duties, if applicable, along with brokerage or clearance fees, currency conversion and a border hold. Since the rules have changed several times since early 2025 and may change again, an unlisted product still carries administrative uncertainty.
How much can the border add to the invoice?
The surtax is calculated on the shipment’s value for duty, and GST is charged on that value plus the surtax. Freight, brokerage, currency conversion and other applicable charges may then add further costs.
In the 2026 government example, an item with a $150 value for duty at a 25% rate incurs $37.50 in surtax. GST is calculated on $187.50, bringing surtax and GST together to $46.88 (CBSA Customs Notice 26-23).
At the 50% rate applicable to listed U.S.-origin staff garments, the same $150 value produces:
- $75 in surtax
- $11.25 in GST on the resulting $225 amount
- $86.25 in surtax and GST combined
- $236.25 total before brokerage, freight or other charges
A few dollars saved on the initial garment price can disappear quickly when the 50% surtax, GST and border-related fees enter the calculation. Buyers should compare complete landed costs, not just unit prices on two vendor quotes.
A transparent quote should separate the garment, decoration, freight, brokerage, taxes, regular customs charges and applicable surtax. It should also identify whether pricing is in Canadian or U.S. dollars.
Why origin and classification need separate checks
The seller’s address does not establish the garment’s origin, and a brand name does not prove where a product was made. Under the applicable rules, surtax treatment depends on tariff classification and origin under the CUSMA marking rules, including when U.S.-origin goods are shipped through another country (CBSA Customs Notice 26-23).
Before approving an imported clothing order, ask for:
- The manufacturing country for each garment style
- The proposed tariff classification
- Fibre composition
- Whether the garment is knitted or woven
- A description of its construction and intended category
- The value and currency shown on the commercial invoice
- Written confirmation of who acts as importer of record
- An estimate of brokerage, clearance, tax and surtax charges
A vague “ships from the U.S.” answer is not enough. It may describe the warehouse location without answering the origin question.
Buyers importing on their own should have a customs broker confirm the classification and origin treatment. This is particularly important for sweatshirts and outerwear, where seemingly minor construction differences may affect classification.
Origin can also change between production runs. A style previously sourced from another country could later become US-made apparel, or the reverse, without a major change to its product name. Reconfirming origin before reorders helps prevent unexpected supply chain costs.
Choosing the right garment and decoration
The best staff garment is one employees will wear consistently, with decoration that suits its fabric and working conditions. Surtax exposure is important, but fit, durability, colour consistency and logo reproduction still determine whether the program succeeds.
T-shirt specifications
For indoor teams, events and seasonal promotions, compare:
- Fibre content and fabric weight
- Fit and available size range
- Neck construction
- Shrinkage and care instructions
- Colour availability across repeat orders
- Print area and seam placement
Screen printing is a practical choice for repeat graphics and larger quantities. Heat-transfer methods can suit names, numbers, short runs or detailed artwork. Embroidery is possible on some heavier shirts, but the fabric must support the stitch count without puckering.
Hoodie and sweatshirt specifications
Staff hoodies should be assessed for warmth, washability and daily comfort. Check fabric composition, interior finish, hood construction, pocket style, zipper quality and ribbing.
Embroidery generally provides a durable uniform appearance, while screen printing and transfers can accommodate larger graphics. Zippers, pockets and thick seams may limit decoration placement.
Jacket specifications
For staff jackets, begin with the working environment. Indoor customer-service employees have different requirements from crews working outside in Quebec weather.
Review insulation, water resistance, wind protection, closures, pocket access and layering room. Also confirm that the decoration method is suitable for the shell. Some coated or technical fabrics need specialized testing before applying heat.
Accent Impression manages decorated custom apparel programs for Canadian organizations, including staff shirts, sweatshirts and outerwear.
Comparing a Canadian order with a U.S. import
A useful comparison puts both options into Canadian dollars and includes every cost required to place the decorated garments in employees’ hands. Comparing only blank-garment prices can make an import look cheaper than it is.
Build the comparison around these line items:
| Buying factor | What to verify |
|---|---|
| Garment cost | Unit price, currency and quantity breaks |
| Origin | Manufacturing country for each style |
| Classification | Tariff item confirmed for the actual garment |
| Surtax | Whether the U.S.-origin product is listed |
| Decoration | Setup, artwork, printing or embroidery |
| Border costs | Brokerage, clearance and possible delays |
| Taxes | GST calculated on value plus surtax where applicable |
| Fulfilment | Sorting, individual packing and distribution |
| Reorders | Colour, size, style and origin availability |
For multi-location staff programs, also consider how garments will be sorted. Kitting by employee, department or store can reduce internal handling, especially when a rollout includes several sizes and garment types.
The financial comparison should also account for supply chain risk. Origin documentation, customs review and border delays can affect a time-sensitive order even when the initial vendor price is lower.
Additional custom apparel guides cover decoration methods, garment specifications and ordering approaches.
Which option fits each use case?
The right buying decision depends on the garment category, documented origin and operational risk. A domestic supplier relationship can simplify budgeting, while an imported order needs enough potential savings to justify customs administration and cost uncertainty.
New employee uniforms
Prioritize reliable reordering, broad sizing and stable colours. Confirm whether future replenishment will use the same origin and classification as the initial order.
Event and promotional shirts
For date-sensitive programs, account for possible border holds. A low initial T-shirt price offers little comfort if the decorated garments arrive after the event.
Outdoor staff outerwear
Evaluate performance specifications before price. Confirm garment construction, shell compatibility with decoration and the tariff treatment of the exact style.
Multi-store retail rollouts
Use size-level order data and kit garments by store. The financial comparison should include sorting, labelling, packing and final distribution, not simply the cost of the blanks.
Frequently asked questions
Does every staff garment ordered from a U.S. company carry the 50% surtax?
No. The measure applies to specified tariff classifications when the goods are U.S.-origin. Many garments sold by U.S. vendors are manufactured elsewhere and are not U.S.-origin for this Canadian surtax.
Are US-made polos and caps subject to the 50% apparel surtax?
Polos under heading 6105 and caps under heading 6505 are not on the current list. They are still commercial imports and may require customs entry, brokerage, currency conversion and additional border processing.
Is every hoodie automatically classified at 50%?
No. Cotton and man-made-fibre sweatshirts under 6110.20.00 and 6110.30.00 are listed, but the correct classification depends on the actual garment. Confirm uncertain classifications with a customs broker.
Does decorating a U.S.-made blank in Canada remove the surtax?
Generally, no. Customs treatment applies when the garment is imported, and subsequent printing, transfer application or embroidery does not generally change the blank garment’s origin.
What documents should a U.S. vendor provide?
Request a commercial invoice with an accurate garment description, fibre composition, manufacturing country, quantity, customs value and currency. The importer should also confirm the proposed tariff classification before shipment.
Can the applicable rules change after a uniform program begins?
Yes. The rules have changed several times since early 2025, and the order can be amended again. Reconfirm origin, classification and applicable charges before every substantial reorder.
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Rather leave the border out of it? Our Montreal team quotes in Canadian dollars, on one Canadian invoice.