October 2025 Update
The U.S. suspension of the duty-free “de minimis” threshold for low-value shipments, which took effect on August 29, 2025, continues to reshape cross-border shopping from Canada. This change, enacted via Executive Order, has eliminated the previous $800 exemption from duties and formal customs procedures for most imports, affecting all packages regardless of value.
While the initial rollout aimed to curb evasion of tariffs and combat issues like illicit drug trafficking, it has led to higher costs, shipment delays, and operational challenges for shippers and retailers. Here’s what this means for U.S. consumers buying from Canadian businesses, how Canada Post and partners like Zonos are adapting, and other recent developments.
What’s Changed and Current Status
Previously, items valued at $800 or less could enter the U.S. duty-free without formal customs entry. Now, all shipments from Canada to the U.S. are subject to duties, taxes, and fees based on the product’s value, country of origin, and applicable tariffs under the International Emergency Economic Powers Act (IEEPA). This applies across all carriers, including Canada Post, couriers like UPS, and freight services.
Since implementation, the change has caused widespread delays as businesses adjust. For instance, UPS suspended its money-back guarantee for U.S.-bound shipments on October 2, 2025, citing increased delay risks. Canada Post has faced significant challenges, including a nation-wide strike, with experts warning it could lose much of its commercial U.S. business as small retailers shift to alternatives. Additionally, Canada’s temporary remission on certain U.S. imports expired on October 16, 2025, potentially escalating bilateral trade tensions.
Canada Post remains committed to facilitating cross-border trade, especially for small businesses, through tools and partnerships. For the latest, visit Canada Post’s duties update page or consult U.S. Customs and Border Protection resources. If you’re a frequent shopper, monitor trade news for any policy shifts amid U.S.-Canada tariff discussions.