Update: Are your CUSMA-compliant shipments being charged United States (U.S.) tariffs? Canada Post has confirmed that, following the elimination of the U.S. De Minimis Exemption, goods sent through the postal stream are now subject to tariff collection, even if they qualify for CUSMA. As a result, the U.S. Postal Service is required to collect duties on these shipments, regardless of CUSMA eligibility. Affecting postal shipments only, commercial couriers like UPS, FedEx, and DHL can still apply CUSMA exemptions. Feel free to send us your Comments or Questions.
As of August 29, 2025, shipments to the U.S. valued under $800 USD are no longer duty- and tariff-free under the U.S. De Minimis exemption, unless the goods meet CUSMA (Canada-United States-Mexico Agreement) requirements. The U.S. administration has eliminated this exemption and now requires that postal services apply duties to shipments, regardless of CUSMA eligibility. Postal services, including Canada Post and Zonos, are subject to this requirement. Commercial couriers like UPS, FedEx and DHL can still apply CUSMA exemptions. According to CFIB surveys, nearly one-third of exporters expect to be negatively affected by the loss of the U.S. De Minimis. Its loss means higher costs, more paperwork, and possible delays.
With the loss of the U.S. de minimis exemption, your business will need to decide how you ship goods to the U.S., because your choice of carrier now affects whether duties apply.
Below are different shipping options your business can consider. CFIB Members can compare courier rates through CFIB’s ShipTime or Freightcom before choosing a carrier.
Postal service (Canada Post to USPS):
Often the simplest and lowest cost option for good for low-risk and low-urgency packages with basic tracking. However, shipments sent through postal channels will now have duties applied, even if your goods are CUSMA-compliant.
Shipments sent through Canada Post get processed through the Zonos system to calculate and collect U.S. duties. Zonos is responsible for collecting duties and remitting them to U.S. Customs and Border Protection (CBP) to ensure compliance with U.S. Executive Order requirements.
To avoid unexpected costs for you or your customers, review the Canada Post - Ship to the U.S. page before sending your shipment.
Commercial courier (e.g., UPS, FedEx, DHL):
Shipping through a commercial courier (FedEx, UPS, DHL), may allow you to claim the CUSMA exemption on eligible goods. While courier rates can sometimes be higher, claiming CUSMA-compliant status can help you avoid additional duties. Couriers also offer faster delivery and more shipment tracking options.
Consolidators (e.g., Chit Chats, Stallion, Freightcom)
A cost saving option for ecommerce sellers and frequent shippers. You drop off your package with the consolidator, who moves it across the border in bulk and inject it into UPSP or a courier inside the U.S. Rates are usually lower than using a courier directly. Duty treatment depends on which network they use for final deliver.
LTL or FTL Freight (Commercial Trucking)
Used for larger shipments or bulk inventory. Less Than Truckload (LTL) is used when you share space on a truck with other businesses. Full Truckload (FTL) is for larger loads that fill a truck. A customs broker usually handles border paperwork. This is not used for individual parcels, but good for SMEs that ship inventory to a warehouse or distributor.
If your goods are CUSMA-compliant, for example, because they are produced or substantially transformed in Canada, the U.S., or Mexico according to the agreement’s rules of origin, they can still enter the U.S. duty- and tariff-free after August 29, 2025.
Tips to consider from CFIB, UPS and FedEx:
“I hereby certify that the goods covered by this shipment qualify as an originating good for the purposes of preferential tariff treatment under USMCA/T-MEC/CUSMA.”
Blanket certifications may be available to cover multiple shipments of the same goods for up to 12 months, so you don’t need to prepare new paperwork for each parcel. Consider whether you need to get a U.S. bond.
Resources:
Fedex: CUSMA/USMCA/T-MEC
UPS: Canada-US-Mexico Trade Agreement (CUSMA) has replaced NAFTA (North American Free Trade Agreement) on 1 July 2020.
If you currently import material from outside North America (e.g., parts from Europe or Asia), check whether you can adjust sourcing or production so that your finished products qualify under CUSMA rules.
Resources to help you:
If your products include materials from countries outside CUSMA, those shipments may now face:
What you can do:
Resources: