What Changed
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The U.S. has eliminated its US $800 duty-free threshold.
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All shipments from Canada to the U.S. are now subject to duties, taxes, and clearance fees, regardless of value.
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For Canadian-made goods, duties will generally be assessed at 35%.
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Proof of prepaid duties is required before packages are accepted for U.S. delivery.
CUSMA Exemptions
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If your products qualify under CUSMA (United States-Mexico-Canada Agreement) and you provide a valid certificate of origin, you may be exempt from the 35% IEEPA duty.
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Note: Even with CUSMA, carriers may still apply a processing fee.
Example: A Canadian-made cardigan valued at $57 will face an additional $19.95 duty under the new rules.
What This Means for Your Business
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Higher shipping costs and added paperwork for all U.S. orders.
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Risk of shipment delays or returns if duties are unpaid.
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Additional brokerage and clearance fees may apply.
What You Should Do Now
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Check with your shipping provider about duty collection processes.
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Adjust your pricing to include duty/tax costs and avoid surprising U.S. customers.
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Prepare proper documentation, including CUSMA certificates where eligible.
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Stay updated: Carriers such as Canada Post have updated systems to help small businesses handle duty collection and clearance. Contact your carrier now for specific guidance.
