Trade War to Increase Cost of Firearms, Ammo

U.S. President Donald Trump has carried out his planned 25% tariff on Canadian goods, triggering tit-for-tat Canadian tariffs on U.S. imports announced today by Canada, which will increase the cost of purchasing guns and ammunition to Canadian shooters.

As a result of the apparent trade war, the Canada Border Services Agency published Customs Notice 25-10: United States Surtax Order 2025-1, which among other things, will impose a 25% tariff on the import of U.S. firearms and ammunition.

The vast majority of firearms and ammunition imported into Canada originate in the United States. Canada has very few domestic firearms manufacturing businesses, and next to no domestic ammunition plants that serve the retail public. As a result, the tariffs will almost immediately increase the cost at retail for Canadian consumers purchasing ammunition, and as inventory is replaced, for firearms as well.

Industries Valcartier Inc. (IVI) manufactures ammunition exclusively for the Canadian Armed Forces, and does not sell to the Canadian public. This has been the case since the 1970s when it purchased the consumer ammunition division of C-I-L, a Canadian chemical company that now primarily makes fertilizers.

The former Lakefield Arms company was purchased by U.S. brand Savage Arms in 1995, though it still maintains a facility in Lakefield, Ontario – about 90% of its products are exported to the U.S. Colt Canada is located in Ontario as well, formerly known as Diemaco, though again the U.S. owned company primarily serves military and international customers, not the Canadian consumer market.

The rest of Canada’s firearms manufacturing comes from small custom shops and niche players, such as Alberta Tactical Rifle, Kodiak Defence, Maple Ridge Armoury, Loyalist Arms, and a few others.

The only Canadian ammunition company we are aware of is Challenger, based in Quebec, which lists only shotgun ammunition on its website.

The CBSA will apply the Surtax Order on all U.S. origin goods being imported by individuals or businesses, unless the goods are subject within the full personal traveller’s exemption in the case of individuals. Since the largest exemption is $800 for an absence of 7 days, and since all personal exports of firearms and ammunition from the U.S. to Canada require export permits, it is not likely that too many importations will qualify.

The surtax of 25% is also calculated on the value for duty, meaning that it is applied before GST/HST, further increasing the cost to the end consumer.

While we hope the tariffs do not last long, and the trade war subsides, it looks as though neither side is backing down, and that means Canadian firearms owners are about to start feeling the effects in their pocket soon.