What’s changing
The de minimis exemption has enabled streamlined, low-cost access to the U.S. market for small parcels, particularly through e-commerce and direct to consumer channels. That benefit is now being removed for all commercial shipments, regardless of origin, transport mode, or platform while postal shipments will follow a separate duty collection process, for now.
There will be no special treatment for Canada or other U.S. trade partners. Commercial goods entering the U.S., even if under the USD $800 threshold, will require a formal entry and payment of all applicable duties and tariffs.
Why it matters
This policy shift will directly impact businesses that have built fulfillment strategies around low-value shipment channels. It will:
- remove a key cost-saving mechanism for exporters shipping direct to U.S. consumers;
- increase landed costs on previously duty-free items, including USMCA originating goods;
- create new customs compliance obligations for high-volume, low-value shipments; and
- raise the risk of delays or enforcement action where shipments are not properly declared.
Who is affected
The impact will be most immediate for Canadian exporters in the following categories:
- consumer goods: apparel, accessories, personal care, and packaged foods;
- health, wellness, and supplements;
- home electronics and lifestyle products; and
- specialty or niche brands leveraging e-commerce platforms.
Companies using third-party logistics providers, parcel consolidators, or Section 321 fulfillment services should expect material cost and process disruptions.
What to do now
With a 30-day lead time before implementation, companies should act quickly to:
- identify SKUs and shipment flows currently routed under de minimis channels;
- recalculate landed costs for U.S. bound shipments including tariffs, brokerage, clearance fees; and
- review pricing models and customer terms to account for duty liability.
The August 29 effective date leaves little room for delay so companies should move now to adjust their import procedures and ensure their U.S. bound supply chains are ready.
How BDO can help
The loss of the de minimis exemption introduces added cost and compliance pressures for Canadian exporters, especially those relying on low-value, high-volume shipments into the U.S.
Now is the time to reevaluate how goods are routed, how entries are made, and where your exposure lies.
BDO supports clients across sectors in adapting to customs and tariff changes with landed cost modeling, U.S. entry strategy reviews, and cross-border supply chain planning. Contact a BDO advisor to assess your risk and align your operations ahead of the August 29 enforcement date.