New U.S. Duty Rules Affecting All Canadian Shipments
We want to make sure you are aware of an important change that has affected all businesses shipping products to the U.S. What changed:
- As of August 29, 2025, the United States removed its US $800 duty-free threshold. All shipments from Canada to the U.S. are subject to duties, taxes, and clearance fees- no matter the value.
- For Canadian-made goods, duties will typically be assessed at 35%.
- Proof of prepaid duties is now required before your package is accepted for U.S. delivery.
- As of now, CUSMA Exemptions Still Apply - If your products meet CUSMA (United States-Mexico-Canada Agreement) rules of origin and you include a valid certificate; you may be exempt from IEEPA duties (35%).
- Note: Even with CUSMA, carriers may charge a processing fee.
Example: A Canadian-made cardigan worth $57 will face a $19.95 duty under the new rules. What This Means for Your Business
- Expect higher costs and additional paperwork when shipping to U.S. customers.
- Shipments may be returned if duties are unpaid.
- Brokerage and clearance fees may apply.
What You Can Do Now
- Review your shipping provider’s duty collection options.
- Build duty/tax costs into your pricing so U.S. customers are not surprised.
- Ensure your shipments include the proper documentation (CUSMA certificates where eligible).
To support small businesses, several carriers including Canada Post have adjusted their systems to handle duty collection and clearance. We recommend contacting your shipping carrier now to understand the specific steps and options available to your business. We encourage you to stay in touch with your carrier and accredited news sources for updates as they become available. - The Digital Main Street team
Digital Main Street assists main street businesses with their adoption of technology with easy to use tools and resources.