Shipping to the US from Canada: Duties and Tax
Short answer: almost every parcel you sell to a US customer now owes US import duty. The US$800 de minimis rule has been suspended since 29 August 2025 and is repealed by law from 1 July 2027. Canadian-made goods that qualify under CUSMA can still go duty-free by courier, but Canada Post parcels pay the normal duty plus a 10% Section 301 tariff, prepaid. Products on the Section 338 list, which includes apparel, textiles and furniture, pay 50% however they’re shipped. On the Canadian side, US orders are zero-rated: no GST/HST.
This guide is for Canadian small businesses shipping orders to US buyers: Shopify, WooCommerce and BigCommerce stores, Etsy and eBay sellers, and Amazon sellers sending stock south. It’s current as of 1 November 2026. US tariffs on Canada changed four times this year, so check the Trade Commissioner Service tariff FAQ before a big shipment.
Shipping to the US from Canada: what applies to you
Section titled “Shipping to the US from Canada: what applies to you”| Your situation | US duty? | Who usually pays | What to do |
|---|---|---|---|
| Shopify, WooCommerce or BigCommerce store posting with Canada Post | Yes: normal US rate + 10% Section 301, even for made-in-Canada goods | You, prepaid when you buy the label | Price the duty in, or charge it at checkout |
| Store shipping by courier (UPS, FedEx, DHL, Purolator), goods made in Canada | Often none if they qualify under CUSMA and aren’t on the Section 338 list | You (duties-paid) or the buyer (DAP) | Add a CUSMA certification of origin to the invoice |
| Store shipping goods made outside Canada (resold imports) | Yes, at the rates for the country where they were made | You or the buyer | Declare the true country of origin |
| Selling apparel, textiles, furniture or other Section 338 products | Yes, 50% extra, with no CUSMA exemption | You or the buyer | Check your HTS code against the current list |
| Etsy seller posting to US buyers | Yes | You: Etsy requires duties-paid shipping | Buy duties-paid labels. Etsy collects US sales tax |
| Amazon FBA seller sending stock to US warehouses | Yes, on the whole shipment | You, as importer of record | Use a US customs broker. Stock creates US sales tax nexus |
| Personal gift worth US$100 or less, from one person to another | No | Nobody | Businesses can’t use this |
On the Canadian side, every one of these sales is a zero-rated export: no GST/HST, but it counts towards your $30,000 small supplier threshold.
What happened to the US de minimis?
Section titled “What happened to the US de minimis?”Until 2025, a parcel worth US$800 or less could enter the US free of duty under Section 321 of the US Tariff Act. It’s why shipping small orders to US customers was so easy. That exemption has gone in stages:
| Date | What changed |
|---|---|
| 2 May 2025 | De minimis ends for goods from China and Hong Kong |
| 29 August 2025 | Executive Order 14324 suspends de minimis for commercial goods from every country, including Canada. Only CUSMA-qualifying goods entered by couriers could still avoid duty |
| 20 February 2026 | The Supreme Court strikes down the IEEPA tariffs. A new executive order keeps the de minimis suspension in place under a different power |
| 24 June 2026 | CBP publishes rules suspending de minimis indefinitely, for mail and every other mode |
| 24 July 2026 | A new US postal entry process starts for mail worth up to US$2,500 |
| 13 August 2026 | The US Court of International Trade upholds the suspension |
| 1 July 2027 | The One Big Beautiful Bill Act repeals de minimis for commercial shipments by law |
It isn’t coming back for sellers. The only exemption left is for genuine gifts worth US$100 or less sent from one individual to another. A business can’t declare a sale, a replacement or a free sample as a gift. Our Section 321 de minimis guide has the full history.
US tariffs on Canadian goods in 2026
Section titled “US tariffs on Canadian goods in 2026”US import duty on a Canadian parcel can have up to four layers. Which apply depends on what the product is, where it was made and how it’s shipped.
1. The normal US duty rate (MFN)
Section titled “1. The normal US duty rate (MFN)”Every product has a code in the US Harmonized Tariff Schedule with a “general” (MFN) duty rate. Many handmade goods are low or free: candles and soap are free, silver jewellery is 5%, leather handbags are around 9%, wool sweaters 16%. Goods that qualify under CUSMA pay 0% instead of the MFN rate.
2. Section 301: 10% on most goods since 24 July 2026
Section titled “2. Section 301: 10% on most goods since 24 July 2026”| Period | Extra tariff on non-CUSMA Canadian goods | Legal basis |
|---|---|---|
| 4 March 2025 to 31 July 2025 | 25% (10% on energy and potash) | IEEPA (later ruled unlawful) |
| 1 August 2025 to 23 February 2026 | 35% | IEEPA (later ruled unlawful) |
| 24 February to 23 July 2026 | 10% | Section 122 temporary surcharge |
| From 24 July 2026 | 10% | Section 301 |
On 20 February 2026 the Supreme Court ruled that IEEPA doesn’t allow the President to impose tariffs, which ended the 35% tariff from 24 February. Since 24 July 2026 most goods from most countries, Canada included, pay a 10% Section 301 tariff. Goods that qualify under CUSMA and are entered duty-free under it are generally exempt, and many products are excluded entirely. The catch for small sellers is how the goods are shipped: see post vs courier.
3. Section 338: 50% on a list of Canadian products
Section titled “3. Section 338: 50% on a list of Canadian products”This one is aimed at Canada only. Announced on 20 July 2026, a 50% tariff took effect on 22 August 2026 on about US$20 billion of Canadian goods. The categories include:
- textiles and apparel
- furniture
- plastics
- ICT and electronics
- paper
- industrial machinery
- wood
- sports equipment
There’s no CUSMA exemption from Section 338: a sweater knitted in Montreal from Canadian wool still pays 50% if its tariff code is on the list. The list is set by HTS code, and it has already changed: the US revised it on 15 September 2026 (adding items such as certain cheeses, paper products and structural steel components, and making Section 338 stack on Section 232 for most goods), and again by a proclamation dated 23 October 2026 that took effect on 30 October. Canada responded with counter-tariffs on 8 September 2026.
What to do: look up the 10-digit HTS code for each product you ship to the US, and check it against the current Section 338 list on the Trade Commissioner Service page or CBP’s CSMS messages. Read US tariffs on Canada: what small sellers pay now for a plain-English overview.
4. Section 232: steel, aluminium, lumber and cabinets
Section titled “4. Section 232: steel, aluminium, lumber and cabinets”Global sectoral tariffs that also hit Canada, mostly with no CUSMA exemption:
- Steel, aluminium and copper and products made from them: 15% to 50% of the full value. Goods with less than 15% metal content by weight are exempt.
- Upholstered furniture: 25%, rising to 30% on 1 January 2027.
- Kitchen cabinets and vanities: 25%, rising to 50% on 1 January 2027.
- Softwood lumber: 10%.
- Auto parts: 25%, but CUSMA-compliant parts are currently exempt.
Can you get the 2025 tariffs back?
Section titled “Can you get the 2025 tariffs back?”IEEPA tariffs paid before 24 February 2026 are refundable, but CBP pays refunds to the importer of record. On courier and postal parcels that’s usually the carrier, its broker or your buyer, not you. If you prepaid IEEPA duty on US parcels in 2025, ask the carrier or platform you bought labels from.
CUSMA: made in Canada vs shipped from Canada
Section titled “CUSMA: made in Canada vs shipped from Canada”CUSMA (called USMCA in the US) lets goods that originate in Canada, the US or Mexico cross the border without the normal duty. Being shipped from Canada isn’t enough:
| Product | CUSMA origin? | Why |
|---|---|---|
| Candles poured in Halifax from wax and wicks | Usually yes | Made in Canada, and the materials are transformed enough to meet the product’s rule of origin |
| Mugs thrown and glazed in a Calgary studio | Usually yes | Made in Canada |
| Phone cases made in China, resold from a Toronto warehouse | No | Made in China. They pay the duties on Chinese goods, which are higher |
| Jewellery assembled in Canada from imported finished pendants and chains | Maybe not | Simple assembly may not meet the rule of origin. Check the product-specific rule |
To claim CUSMA you provide a certification of origin. There’s no official form: it can go on the commercial invoice, as long as it includes the required data elements (certifier, exporter, producer, importer, description and HS code, origin criterion, and a signature and date). A blanket certification can cover repeat shipments of the same product for up to 12 months. The CUSMA compliance page from the Trade Commissioner Service explains the rules of origin.
Canada Post vs couriers
Section titled “Canada Post vs couriers”This is now the biggest decision for small sellers, because the two channels treat CUSMA differently.
| Canada Post | Couriers (UPS, FedEx, DHL, Purolator) | |
|---|---|---|
| US duty paid how | Prepaid when you buy the label, through Canada Post’s partner Zonos. No proof of payment, no parcel | The courier pays CBP and bills you (duties paid) or the buyer (DAP) |
| CUSMA claim | Not available on postal shipments, per Canada Post and CFIB | Available with a certification of origin |
| Duty on made-in-Canada goods | Normal US rate + 10% Section 301 | Often 0%, unless on the Section 338 list |
| Fees | A duty-handling fee on top of postage | Brokerage or “disbursement” fees, especially on DAP |
| Postage cost | Usually cheaper for light parcels | Usually dearer, but discounted business rates help |
Per the CFIB, Canada Post has confirmed that postal shipments to the US are subject to tariff collection even when the goods qualify under CUSMA. Couriers can still apply the CUSMA exemption. So for made-in-Canada goods with a non-zero US duty, a courier can be cheaper overall even when the postage is higher. Run the numbers for your top products.
When de minimis ended in August 2025, Etsy and eBay stopped selling Canada Post labels for US-bound parcels. Check what each platform offers today before you rely on it.
DDP vs DAP: who pays the duty
Section titled “DDP vs DAP: who pays the duty”| DDP (Delivered Duty Paid) | DAP / DDU (duties unpaid) | |
|---|---|---|
| Who pays the US duty | You, at label purchase or on your carrier bill | Your buyer, before delivery |
| Extra fees | Handling fee to you | Carrier’s collection fee to the buyer |
| Buyer experience | Pays exactly what they saw at checkout | Gets a surprise bill, often refuses the parcel |
| Etsy | Required for US-bound orders from abroad since 9 July 2026 | Loses Purchase Protection, and Etsy can charge you the buyer’s refund |
| Canada Post | The only option: duty is always prepaid | Not available |
Ship DDP for consumer orders. Either build duty into your US prices or show it as a line at checkout. Use DAP only for business buyers who’ve agreed to clear goods themselves.
Customs paperwork for US shipments
Section titled “Customs paperwork for US shipments”Every commercial parcel to the US needs a full customs declaration. The data has to be good enough for CBP to calculate the duty:
- A commercial invoice (or the electronic declaration your label software sends) showing the sale price as the value. Never under-declare or call a sale a gift.
- An HS/HTS code for each item. The first 6 digits are international. The US uses 10.
- Country of origin: where the item was made, not where it was posted.
- A clear description: “hand-poured soy wax candle, 8 oz”, not “gift” or “candle”.
- A CUSMA certification of origin if you’re claiming CUSMA on a courier shipment.
On the Canadian side, exports to the US generally don’t need a CBSA export declaration unless the goods are controlled, regulated or prohibited.
Worked example: a Halifax candle shop, post vs courier
Section titled “Worked example: a Halifax candle shop, post vs courier”Saltbox Candle Co. pours soy candles in Halifax and sells on Shopify. A customer in Boston orders a CA$60 gift set. We’ve used CA$1 = US$0.72 to keep the maths simple. Use the day’s rate.
- Customs value: CA$60 = US$43.20
- Normal US rate for candles (HTS 3406.00.00): free
- Section 301: 10%, unless CUSMA is claimed
- Section 338: candles aren’t in the categories announced so far, but Saltbox checks its code against the latest list
| Canada Post, duties prepaid | Courier, CUSMA claimed, duties paid | |
|---|---|---|
| Normal US duty | US$0 | US$0 |
| Section 301 (10%) | US$4.32 (about CA$6.00) | US$0: CUSMA goods exempt |
| CUSMA claim possible? | No | Yes: certification of origin on the invoice |
| Duty Saltbox pays | about CA$6.00 + handling fee | CA$0 + any brokerage fee |
| Buyer pays on delivery | Nothing | Nothing |
On a light parcel, Canada Post’s cheaper postage may still win even with CA$6 of duty. On heavier or higher-value orders, the courier’s CUSMA exemption usually pulls ahead. Either way, Saltbox ships duties paid so its US buyers never get a bill at the door.
GST/HST: Saltbox is registered, so on a domestic order it would charge 14% HST (CA$8.40 to a Halifax customer). The Boston order is a zero-rated export: it charges 0% and keeps the carrier tracking and invoice as proof. It still claims back the HST it paid on wax, jars and shipping supplies.
Now a Section 338 product. Northline Apparel in Toronto sells a CA$140 wool sweater to a buyer in Chicago (US$100.80). Northline checks the sweater’s HTS code and finds it on the Section 338 list, so it pays 50%, about US$50.40 (CA$70), even though the sweater is made in Canada and qualifies under CUSMA. At that rate, many apparel sellers have raised US prices, moved US stock to a US warehouse (which is itself an import that pays the tariff, once, on the whole shipment) or paused US sales of the affected lines.
US sales tax for Canadian sellers
Section titled “US sales tax for Canadian sellers”US sales tax is separate from duty: duty is federal and charged at the border, sales tax is set by each state and charged at checkout.
- Marketplaces collect it for you. Etsy, Amazon and eBay are marketplace facilitators: they collect and pay US sales tax on your orders in every state with a sales tax.
- Your own store: only after nexus. You register in a state once your sales into it pass its economic nexus threshold, usually US$100,000 a year. California and Texas use US$500,000, and New York requires both US$500,000 and more than 100 sales. A small Canadian brand is usually well below every threshold. Check with the US nexus calculator and the state sales tax index.
- Stock in the US changes everything. Inventory in Amazon FBA or a US 3PL creates physical nexus in that state from the first unit. See Amazon FBA and nexus.
More in US sales tax for Canadian online sellers and the foreign sellers guide. To check a US rate, use the US sales tax calculator by ZIP code.
The GST/HST side: US sales are zero-rated
Section titled “The GST/HST side: US sales are zero-rated”Goods you ship to a customer outside Canada are zero-rated exports. If you’re registered, you charge 0% GST/HST, but you must be able to show the goods left Canada. Keep:
- the carrier’s tracking showing delivery to a US address, and
- the commercial invoice or customs declaration for the shipment.
Three things to remember:
- US sales count towards the $30,000 small supplier threshold, even though you charge no tax on them. A seller doing mostly US business can still have to register.
- You can still claim input tax credits on the GST/HST you pay on materials, packaging and postage for those sales. Sellers who export a lot often get a GST/HST refund.
- US duty you pay on DDP shipments is a business expense, not something you can claim back through your GST/HST return.
Selling digital products or services to US clients is covered in do you charge GST/HST to US customers?.
Amazon FBA: sending stock to US warehouses
Section titled “Amazon FBA: sending stock to US warehouses”Sending stock to an Amazon US fulfilment centre is a commercial import. Amazon won’t act as importer of record, so you register as a non-resident importer and use a US customs broker, who files the entry and arranges a customs bond. Shipments over US$2,500 need a formal entry. Duty, including any Section 338 tariff, is due on the whole shipment when it crosses, and CUSMA can be claimed for qualifying goods. Amazon collects US sales tax on your sales, but the stock gives you physical nexus in each state where it’s stored, which can mean registering there for other channels too.
Checklist before you ship to the US
Section titled “Checklist before you ship to the US”- Find the 10-digit HTS code and country of origin for every product you sell to the US.
- Check each code against the current Section 338 list and Section 232 lists.
- For made-in-Canada goods, prepare a CUSMA certification of origin and compare courier vs Canada Post costs.
- Ship DDP: Canada Post prepaid duty, Etsy duties-paid labels or a courier’s duties-paid service.
- Set US prices that cover duty, or show duties at checkout.
- Zero-rate US orders for GST/HST and keep tracking and invoices.
- Keep counting US sales towards your $30,000 GST/HST threshold.
- Own-store sellers: review US state sales tax thresholds once a year.
Watch these dates: further Section 338 proclamations can change the list at short notice; upholstered furniture and cabinet tariffs rise on 1 January 2027; the de minimis repeal takes effect in law on 1 July 2027; and the annual CUSMA joint review continues. We’ll update this guide as things change.
Official sources
Section titled “Official sources”- Trade Commissioner Service: Answers to common questions about US tariffs
- Trade Commissioner Service: Understanding CUSMA compliance
- CFIB: The loss of the US de minimis exemption
- USITC: Harmonized Tariff Schedule search
- CRA: GST/HST on imports and exports
How GoodVat helps
Section titled “How GoodVat helps”GoodVat isn’t a customs broker: we don’t clear parcels or pay duty. We handle the tax side of selling into the US:
- Tracks your sales against the $30,000 GST/HST threshold, including zero-rated US orders, and against US state nexus thresholds, across Shopify, WooCommerce, BigCommerce, Etsy and Amazon
- Calculates GST/HST, PST and QST for Canadian orders and US sales tax for US orders at checkout
- Registers you and files returns in Canada and in US states through our local partners, priced per registration and quoted upfront