The US de minimis exemption for low-value shipments was suspended in August 2025, so Canadian sellers shipping to US customers now face a formal customs entry, a per-parcel fee, and possible tariffs on every order, not just large ones. CUSMA-compliant goods can still move with reduced or zero tariffs, which makes origin paperwork the highest-value item on a Canadian seller's 2026 to-do list. This guide covers what actually changed, what it costs today, and the checkout and pricing decisions that protect margin on US orders.
If you sell to the US and shipping costs or refused parcels have crept up this year, you are not imagining it. The rules genuinely moved, more than once, and a lot of store owners are still pricing and shipping as if it is 2024. Here is the current picture and the practical response.
01. The Quick Answer: What Changed for Cross-Border Sellers
Until August 2025, a shipment valued under 800 USD could enter the US duty-free and without a formal customs entry under the Section 321 de minimis rule. That exemption was suspended for every country, including Canada, closing the route that most small DTC and wholesale parcels used to reach US buyers without friction or extra cost. On top of that, US tariff policy on non-CUSMA-compliant goods has shifted more than once in the past year, and the CUSMA review deadline of July 1, 2026 passed without a renegotiated agreement, so CUSMA continues but moves to annual reviews rather than a fixed multi-year term.
For a Canadian manufacturer, wholesaler, or DTC brand, the practical result is this: every US-bound parcel now needs a formal customs entry, most carriers charge a per-parcel entry fee on top of shipping, and the tariff rate you pay depends on whether your product qualifies as CUSMA-originating. None of this makes the US market unworkable. It does mean the pricing and checkout decisions that were fine in 2024 need a second look in 2026.
Why it matters: a seller who has not repriced US shipping or confirmed CUSMA status since 2024 is very likely absorbing costs that should be priced into the order, one parcel at a time.
02. At-a-Glance: Before and After De Minimis
| Factor | Before August 2025 | Now (2026) |
|---|---|---|
| De minimis threshold | 800 USD, duty-free entry | Suspended for all countries, no exemption |
| Customs entry | Not required for most low-value parcels | Formal entry required for every shipment |
| Typical per-parcel cost | 0 to 5 USD in fees | 15 to 25 USD or more, plus duty if owed |
| Tariff exposure | Minimal for small DTC orders | Depends on CUSMA compliance and product origin |
| CUSMA paperwork | Rarely needed for small sellers | A meaningful margin lever |
Why it matters: the change is not a rate adjustment, it is a structural one. Fixed per-parcel costs now apply regardless of order size, which hits small-ticket DTC orders hardest.
03. Why the De Minimis Exemption Disappeared
The Section 321 de minimis exemption let low-value parcels skip formal customs processing, which was originally meant to reduce administrative burden on small, low-risk shipments. As part of a broader US tariff push, the exemption was suspended for all countries in August 2025, partly to close a route that high volumes of low-value parcels, including from outside North America, were using to avoid duties entirely.
The rules kept moving after that. US tariff rates on non-CUSMA-compliant goods have been adjusted more than once in 2026, and a federal trade court challenge to one tariff mechanism added further uncertainty mid-year. The one constant has been that CUSMA-qualifying goods get preferential treatment relative to goods that do not qualify, which is why origin compliance has become the practical control point for Canadian sellers rather than any single tariff number.
Why it matters: because the underlying policy is still being litigated and adjusted, treat any specific tariff percentage as a snapshot, not a constant, and verify current rates before finalizing pricing on a new SKU.
04. CUSMA Compliance: Your Only Real Lever
CUSMA, the successor to NAFTA and known as USMCA in the US, lets goods that meet its rules of origin move between Canada, the US, and Mexico with reduced or zero tariffs, even while broader US tariffs on non-compliant goods have risen. Qualifying generally means a product meets a set threshold of Canadian, US, or Mexican content, or the manufacturing process causes a qualifying tariff classification shift. A certificate of origin, which a manufacturer or importer completes and keeps on file, is the paperwork that lets a shipment claim CUSMA treatment at the border.
For a lot of small Canadian brands, this paperwork has simply never been done, because it was not worth the effort while de minimis covered most parcels anyway. That calculation has changed. Confirming CUSMA eligibility, or restructuring sourcing so a product qualifies, is now one of the few tariff levers a small seller actually controls, as opposed to shipping fees and threshold rules that are set by government policy and outside anyone's control.
Why it matters: a product that qualifies for CUSMA and one that does not can face a materially different landed cost in the US, for the exact same item, based purely on paperwork.
05. What Canadian Merchants Are Actually Paying Now
Beyond the carrier's base shipping rate, a Canadian seller shipping to the US should now budget for a formal customs entry fee, commonly in the range of 15 to 25 USD per parcel from many carriers and customs brokers, plus any duty or tariff owed based on the product's classification and origin content. On a 30 to 40 dollar retail order, a flat 15 to 25 dollar customs cost alone can erase the entire margin if it is not built into the price.
Larger sellers with higher order values, or wholesale accounts shipping palletized freight rather than parcels, feel this less acutely as a percentage of order value, but they are not exempt from the same structural change: every shipment needs a formal entry, and duty exposure still depends on CUSMA status. The sellers hit hardest are low-ticket DTC brands that used to rely on de minimis to ship cost-effectively in small quantities.
Why it matters: if your US average order value is under roughly 75 to 100 dollars, run the actual math on a recent order. A cost that used to be near zero may now be 15 to 20 percent of the order value.
06. Shopify Checkout: DDP vs DDU
DDP, Delivered Duty Paid, means the seller collects duties and taxes at checkout and remits them, so the US buyer sees one final price and is never billed again by the carrier. DDU, Delivered Duty Unpaid, means the buyer is billed for duties on delivery, which is the setup most Canadian stores defaulted to when de minimis made it rarely matter. With de minimis gone, DDU now regularly produces a surprise charge at the buyer's door, which drives refused parcels, chargebacks, and support tickets.
Configuring DDP on Shopify requires a shipping app or carrier integration that can calculate landed cost, meaning product duty plus tax plus shipping, at checkout and remit it on the seller's behalf. Several major carriers and third-party shipping platforms now support this for US-bound Shopify orders. The setup takes real configuration work, including correct HS codes on every product, but it is the difference between a US buyer seeing one clear number and getting an unpleasant surprise days later.
Why it matters: DDU checkout was a minor inconvenience under de minimis. Without it, DDU is now a meaningful source of cart abandonment and lost repeat purchases on US orders.
07. Practical Steps to Protect Your US Margin
- Get a certificate of origin. Confirm whether your product qualifies as CUSMA-originating and keep the paperwork on file. This is the single biggest lever for reducing tariff exposure on US-bound orders.
- Price in the customs cost, do not absorb it silently. Build the per-parcel entry fee and any expected duty into your US shipping charge or product price so a bad quarter of surprise costs does not show up in your margin report.
- Move to DDP checkout wherever volume justifies it. Show US buyers one final number at checkout instead of a surprise bill from the carrier. This protects conversion and reduces refused parcels and support tickets.
- Recheck your HS codes. Tariff rates are assigned by product classification. Misclassified products can mean paying a materially higher rate than the goods actually qualify for.
- Revisit thresholds quarterly, not yearly. Tariff and de minimis rules have changed more than once in the past year. A landed cost that was accurate in January can be wrong by summer.
Why it matters: most of the margin damage from this change is avoidable. It shows up when pricing and checkout setup have not been updated to reflect the new customs reality, not because the US market itself became unprofitable.
08. When to Bring In a Customs Broker
A lot of Canadian sellers can handle basic HS code classification and CUSMA paperwork with guidance from their carrier or a shipping platform. A customs broker becomes worth the cost when product classification is genuinely ambiguous, when order volume to the US is high enough that a misclassified code compounds into real money, or when a shipment has been held or reassessed at the border and needs a formal response.
Tariff rates, thresholds, and even the de minimis rules themselves have changed more than once in the past year. Treat every specific number in this guide as current at time of writing, and confirm today's rates with a customs broker or your carrier before pricing a new product line for the US.
Why it matters: the cost of a broker is small next to the cost of a misclassified product shipping at volume for months before anyone notices.
09. How AtlanticWorks Helps
AtlanticWorks helps Atlantic Canada manufacturers, wholesalers, and DTC brands selling into the US configure the Shopify side of this problem: DDP-capable shipping and duty calculation at checkout, accurate product classification and landed cost display, and shipping automation that routes US orders correctly. As a certified Shopify, HubSpot, Google, and Salesforce partner, we also connect your CRM and order data so US wholesale accounts and DTC customers are tracked with the same rigor as your domestic business. You keep full ownership of everything we build. It starts with a free assessment of your current US shipping and checkout setup.
10. Key Takeaways
- The US de minimis exemption for low-value shipments was suspended in August 2025, and every parcel to the US now needs a formal customs entry.
- CUSMA-compliant goods can still move with reduced or zero tariffs, which makes a certificate of origin the most valuable paperwork a small Canadian brand can have in 2026.
- Per-parcel customs costs now commonly run 15 to 25 USD or more, which can erase margin on low-ticket orders if it is not priced in.
- DDP checkout, where the seller collects duties up front, protects conversion better than DDU checkout, where the buyer is surprised at delivery.
- Tariff rules have shifted multiple times in the past year. Treat landed cost as something to recheck quarterly, not something to set once.
11. Frequently Asked Questions
Do Canadian ecommerce sellers still get duty-free shipping to the US?
No. The Section 321 de minimis exemption that let low-value shipments under 800 USD clear US customs duty-free was suspended for all countries, including Canada, on August 29, 2025. Every parcel entering the US now requires a formal customs entry, and duties or tariffs may apply depending on the product and its CUSMA compliance status.
What is de minimis and why did it end?
De minimis was the US customs rule that let shipments valued below 800 USD enter without duties, tariffs, or a formal entry. It was suspended in 2025 as part of a broader US tariff push, closing the route that low-value ecommerce parcels from Canada and elsewhere used to reach US buyers duty free. Canadian sellers now face per-shipment customs costs that did not exist before, even on small orders.
How does CUSMA help Canadian sellers avoid US tariffs?
Goods that qualify as CUSMA-originating can often move between Canada, the US, and Mexico with reduced or zero tariffs, even as broader US tariffs on non-compliant goods have increased. Qualifying requires proof that a product meets the agreement's rules of origin, usually a set percentage of North American content or a qualifying tariff shift in manufacturing. For most small Canadian brands, CUSMA compliance paperwork is the single most valuable step to reduce US tariff exposure in 2026.
What does DDP mean for Shopify cross-border orders?
DDP, Delivered Duty Paid, means the seller collects and remits duties and taxes at checkout, so the US buyer sees one final price and is not billed again by the carrier at delivery. DDU, Delivered Duty Unpaid, means the buyer is billed for duties on delivery, which causes surprise charges, refused parcels, and chargebacks. Shopify merchants selling to the US should configure DDP through their shipping app or carrier wherever order volume justifies it, since DDU checkout surprises are a major source of cart abandonment on cross-border orders.
How much does cross-border shipping from Canada to the US cost in 2026?
Beyond the carrier's base shipping rate, sellers should budget for a formal customs entry fee, commonly 15 to 25 USD or more per parcel from many carriers and brokers, plus any duties or tariffs owed based on the product's classification and origin content. On a 30 to 40 dollar order, these fixed per-shipment costs can erase margin entirely if they are not priced into the product or shipping charge. Rates and thresholds are changing quickly, so confirm current numbers with a carrier or customs broker before finalizing pricing.
Should a small Canadian ecommerce brand still sell to US customers in 2026?
For most brands, yes, the US market is still worth pursuing, but the calculation has changed. Sellers need to confirm CUSMA eligibility where possible, build customs costs into product or shipping pricing rather than absorbing them as a surprise, and choose a checkout setup that shows US buyers an accurate landed cost up front. Brands that keep a DDU checkout with no customs planning tend to see rising cart abandonment and margin erosion on US orders.
Related resources
LTL freight, carriers, and automated label workflows
Connect orders, inventory, and fulfillment across borders
B2B vs DTC, ERP integration, and sequencing the investment
Funding sources for technology and automation projects
Not sure what your US orders are actually costing you?
AtlanticWorks runs a free assessment of your cross-border shipping, checkout, and landed cost setup, and builds the fix on Shopify, whether that is DDP checkout, CUSMA-aware pricing, or CRM tracking for US accounts.
Start the Assessment