De minimis exemption on US shipping ends; small businesses face big hit
Published: 12:55 29 Aug 2025 EDT
De minimis exemption (duty free), which permitted goods under US$800 to enter the US without extra fees, ended on Friday following the implementation of a July executive order by US President Trump.
Those shipments will now be subject to duties of up to US$200, weighing on the profits of small businesses globally and potentially leading to extra costs for American customers.
The US government had long expressed concern that de minimis shipments were being used to smuggle illegal drugs into the country, since they're not inspected as closely by US Customs.
Canada has its own de minimis exemption for goods from the US and Mexico up to $150.
Canadians can still send gifts and letter mail valued at less than US$100 to the US at no extra cost, and companies that meet the Canada-U.S.-Mexico Agreement (CUSMA)'s rules of origin are still supposed to be able to ship duty-free.
Canada Post, meanwhile, said it will be employing a third-party technology provider to help “maintain business continuity” for its customers.
Following the Trump administration’s decision, postal services in more than 25 countries have announced the suspension of service to the US.
