U.S. Tariffs Impacting Canadian Businesses
A 35% U.S.-imposed tariff is set to be in place on all outbound shipments from Canadian businesses. Below is the latest information provided by Canada Post and the impact of these tariffs set to start on August 29, 2025. These changes affect all industries and business-related deliveries from Canada to the United States.
Statement below issued by Canada Post
As you may be aware, the United States has suspended its duty-free “de minimis” threshold of US$800 for all countries, including Canada. Starting August 29, 2025, all shipments entering the U.S. must have duties prepaid before crossing the border – regardless of their value.
This change, mandated under U.S. Executive Order 14324, applies to all business shipments from Canada, whether sent through the postal system, a Canadian courier, freight provider, or any commercial channel.
At Canada Post, we’ve been working to understand the order, assess options, and secure solutions that will ensure we can maintain continuity for your business. We are moving swiftly to make the necessary updates to ensure your shipments remain compliant and continue moving smoothly across the border.
What’s changing
Goods valued at US$800 or less that are shipped to the United States through the postal network will be subject to an ad valorem duty. This duty will be equal to the effective tariff rate applicable to the product’s country of origin under the International Emergency Economic Powers Act (IEEPA). For Canada, the current IEEPA rate is 35% for most goods.
What this means for your business
Starting August 29, 2025, every package shipped from Canada to the U.S. must show proof that duties have been prepaid before the shipment can be accepted for delivery.
What this means:
• After this date, Canada Post will only accept U.S.-bound label requests that include a valid Declaration ID – a 13-character code that confirms duties are secured before the shipment is accepted.
• The new U.S. customs regulations will impact your costs, delivery process and customer experience.
Keeping your shipments moving
To meet the new U.S. requirements, we’re partnering with Zonos® to collect duties before they enter our network and remit them directly to U.S. Customs and Border Protection (CBP).
What this means:
• You will be able to access this solution through Canada Post’s software systems – Snap Ship and Shipping Manager; through our web services and APIs; and at post offices across the country.
• A Zonos Verified Account will be required – information on how to create an account through Canada Post will be coming soon.
Next steps
• Stay tuned for more details on our website in the coming days on how to prepare for August 29.
• We’re working hard to expand capability for business customers leveraging EST Desktop 2.0 as well as our partners – ecommerce platforms, shipping systems, marketplaces and 3PLs. We will continue to share updates as our solution evolves.
