This page will be updated as more information becomes available. Feel free to send us your Comments or Questions.
Last updated: August 29, 2025.
As of August 29, 2025, shipments from Canada to the U.S. valued under $800 USD will no longer be 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 made the decision to eliminate this exemption. According to CFIB surveys, nearly one-third of exporters expect to be negatively affected. Its loss means higher costs, more paperwork, and possible delays.
What this change means for you will depend on whether your goods are CUSMA-compliant.
1) Are your goods CUSMA-compliant?
If your goods are CUSMA-compliant, 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, Canada Post, UPS, and FedEx:
- Work with your customs broker or freight forwarder to confirm CUSMA-compliance
- Ensure the accuracy of your manifest data and commercial invoice (now required)
- Ensure CUSMA Certification of origin is included directly on the shipment documentation (commercial invoice) or in a separate Free Trade Agreement certificate
- Low value shipments of less than $2500 USD (thresholds may vary by courier) may accept a simplified low-value statement instead of the full certificate:
“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:
CFIB has reached out to Canada Post, UPS, and FedEx for more information, and this section will be updated as we receive responses.
2) Can your goods become CUSMA compliant?
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.
- Sometimes a small shift in sourcing can make a product eligible.
- Speak to your supplier network or broker about what changes would be needed.
Resources to help you:
3) What if your goods are not CUSMA-compliant?
If your products include materials from countries outside CUSMA, those shipments may now face:
- U.S. duties and tariffs: Goods that do not qualify under CUSMA rules of origin will face a 35% tariff, except where specific sectoral tariffs apply (see details here).
- Brokerage or processing fees from Canada Post/USPS or private couriers
- Potential for longer delivery times at the border due to extra paperwork and/or border inspections.
What you can do:
- Review your product codes (HS codes) with a broker to determine which duties apply.
- Communicate with your U.S. customers so they aren’t surprised by added costs.
- Track the impact: keep records of new fees, delays, and lost sales. Real numbers and examples will strengthen CFIB’s advocacy.
- Share your Comments or Questions: Share your story with CFIB so we can strengthen our advocacy with real examples from small business.
Resources:
In brief:
- If your goods are CUSMA-compliant → include the CUSMA origin declaration for duty-free treatment.
- If not compliant → U.S. duties/fees apply, and couriers (Canada Post, FedEx, UPS) will require proof they’ve been paid before delivery.