Canadian Online Retailers Face High Duties Amid Holiday Season

Canadian online retailers now face a difficult choice: pay high fees on small packages shipped to the U.S. or risk losing sales from American customers during the holiday season.

End of Duty-Free Shipping to the U.S.

For nearly a century, packages valued under $800 US could enter the United States duty-free under the de minimis exemption. This policy ended in August following an executive order by President Donald Trump.

Many small businesses had to adjust quickly. Some temporarily stopped shipping to the U.S., facing an immediate drop in revenue.

Small Businesses Struggle to Adapt

Jessica Sternberg, owner of Free Label Clothing, an online store in Vancouver, said her company paused U.S. shipments for nearly three months. “Nearly 50 per cent of our business comes from the U.S.,” she explained. “That break had a huge impact on our sales.”

Now, with the holiday season underway, Sternberg and other small business owners rely on online orders from American shoppers to stay afloat. At the same time, shipping costs have increased, making cross-border sales more expensive than ever.

Challenges for Small Retailers

Sternberg described the pressure of managing a small business. “We are working hard to stay above water,” she said. “Expecting people who run small businesses to know every detail about exporting is unrealistic.”

Many small businesses are scrambling to understand new shipping rules, manage costs, and still reach their American customers before the holiday season ends.
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