Skip to content

Canada's Business and Tech Newsroom

  • Professional Subscription
  • Partnerships & Advertising
  • Licensing & Syndication
Log In Subscribe
Welcome,
  • My Account
  • Log Out
  • Business
  • Tech
  • National
  • The Big Read
  • Briefings
  • Commentary
Search
Log In Subscribe
Welcome,
  • My Account
  • Log Out
News

The end of de minimis deals a brutal blow to Canada Post

CALGARY — When Donald Trump announced last month he was ending the tariff exemption on low-value packages entering the United States, few noticed language in his order that deals a blow to Canada’s already struggling postal service.

News

The end of de minimis deals a brutal blow to Canada Post

The postal service ‘will have no commercial business’ to U.S. as small businesses scramble for alternatives, customs expert warns

By Laura Osman
A wide shot of Canada Post trucks parked in a compound.
The end of the de minimis tariff exemption of low-value shipments to the U.S. is a serious problem for Canada Post. Photo: Toronto Star via Getty/Andrew Francis Wallace
Sep 5, 2025
A A
A Small A Medium A Large
Share

Gift

Share

CALGARY — When Donald Trump announced last month he was ending the tariff exemption on low-value packages entering the United States, few noticed language in his order that deals a blow to Canada’s already struggling postal service.

Canada Post says that, under the U.S. president’s July 30 directive, its shipments to the U.S. don’t qualify for the exemption granted to products that comply with the United States-Mexico-Canada Agreement (USMCA).

Related Articles

A parcel sits on a concrete floor with peeling paint beside a black line. The word "Québec" is painted on one side of the line; "N.Y." on the other.

Small merchants rush to claim USMCA carve-out as de minimis ends

By Joanna Smith
An aerial shot of an upstate New York city against a flat, grey sky.

These U.S. towns on the front line of Trump’s trade war are already feeling the pain

By Joanna Smith and Anita Balakrishnan

The problems this poses came clear only this week after Trump’s order to suspend the “de minimis” exemption took effect on Aug. 29. Under de minimis, businesses around the world had been able to ship deliveries worth less than US$800 to the U.S. duty free. Now, those parcels face Trump’s 35 per cent tariffs on Canadian goods. With the end of the exemption looming, small Canadian businesses that sell into the U.S. had been scrambling to certify their shipments comply with the USMCA, which is also known as CUSMA, to benefit from the carve-out. 

Many learned only in the last few days they can’t claim the carve-out on products sent via the post office.

“CUSMA-originating goods from Canada and Mexico are not exempt from IEEPA tariffs for postal shipments,” Canada Post spokesperson Lisa Liu said in a statement, referring to the International Emergency Economic Powers Act, the law Trump has cited to justify most of his tariffs.

Liu pointed to Section 3 of Trump’s July 30 order, which lays out separate rules for parcels shipped to the U.S. through the international postal network. Unlike those sent through private couriers, postal shipments from Canada face either a 35 per cent tariff on the value of the package, or, for the next six months, a flat fee of US$200 per item. (A fact sheet released with the order states gifts worth less than US$100 can still cross the border duty-free, no matter the shipping method.)

The White House did not immediately respond to a request for information about why the international postal network was singled out. 

However, people with knowledge of cross-border trade say the move puts Canada Post at a serious disadvantage, as merchants switch to other shipping and delivery options. The language in the order for private couriers says only that those shipments face all “applicable” duties, meaning the carve-out for USMCA-compliant goods still applies. 

“They will have no commercial business to the U.S. now, moving forward,” said Jesse Mitchell, director of business development for Strader-Ferris International, a cross-border customs brokerage, shipping and logistics company that owns MyUSaddress.ca.

Though Canada Post didn’t say what the impact of the policy will be for its bottom line, it’s another blow to the service’s already strained relationship with small businesses. The postal service remains a go-to option for lots of sellers, especially those who need to reach rural areas, said Michelle Auger, senior policy analyst at the Canadian Federation of Independent Business.

But those businesses were forced to find alternative shipping methods during last year’s postal workers’ strike, a month-long labour disruption that cost Canada Post $693 million.

A recent survey of CFIB’s membership businesses shows 73 per cent rely on private couriers for parcel delivery as the organization called for more reliable service. 

The strike, and now Trump’s tariff order, only add to the service’s mounting financial woes. Canada Post hasn’t turned a profit since 2017 and reported a $1.3 billion operating loss in 2024. Parcel delivery revenue dropped $683 million compared to 2023, according to the annual report.

Gift the full article

Canada Post partnered with U.S-based e-commerce company Zonos to help small businesses adapt to the de minimis changes by allowing them to pre-pay the duties on parcels to the U.S. and remit the tax on their behalf. 

Other shipping services, though, including FedEx and UPS, have offered customers help to avoid tariffs on USMCA-compliant shipments for an extra cost, Auger noted.

With files from Joanna Smith

#Canada Post #CUSMA #de minimis #Donald Trump #economy #National #small business #U.S.-Canada trade #USMCA

Sponsored Content

How to shift your workforce from AI experimentation to adoption

By Jessica Aftimus Rosa

The real-world economic offshoots of sovereign AI

By Deborah Aarts
Illustration of a plane flying above a mailbox

Increasing healthcare access across Canada

By Deborah Aarts
Paid promotional content

Loading...

Thanks for sharing!

You have shared 5 articles this month and reached the maximum amount of shares available.

Close
This account has reached its share limit.

If you would like to purchase a sharing license please contact The Logic support at [email protected].

Close
Want to share this article?

Upgrade to all-access now

Close
Gift the full article!

You have gifted 0 article(s) this month and have 5 remaining.

Copy link and gift
Copy Link
Email to a friend
Send Email
Gift on Social Media

Recipients will be able to read the full text of the article after submitting their email address. They will not have access to other articles or subscriber benefits.

A wide shot of Canada Post trucks parked in a compound.

Photo: Toronto Star via Getty/Andrew Francis Wallace

Most Popular This Week

A head-on shot of Mark Carney at a lectern embossed with a maple leaf carved from wood. There is a row of Canadian flags behind him, and he's looking at the camera with a serious expression.
News

How Mark Carney plans to wage trade war against the United States

By Laura Osman and Murad Hemmadi
A shot from the bottom of a flight of red brick stairs of Dominic LeBlanc emerging from a building, with Janice Charette and Mark Wiseman in single file behind him.
News

Canada pulls out of trade talks at last moment, citing ‘unfair’ changes by U.S.

By Laura Osman
An image of a man with glasses, wearing a dark blue suit and light blue collared shirt. The man looks slightly away from the camera and a microphone is visible in the foreground. A blue background that reads World Economic Forum is visible in the background.
News

Anthropic wants to add ‘gigawatts’ of AI compute in Canada

By Murad Hemmadi
Three people cross a busy intersection on Bay Street, against a backdrop of dark buildings and cars. Their silhouettes are blurred.
News

For decades, lawyers hustled to make partner. AI is changing that

By Anita Balakrishnan

In-depth, agenda-setting reporting

Great journalism delivered straight to your inbox.

Close-up of a red American roadside call box marked “Made in the U.S.A.,” with a blurred semi-truck approaching on Gordie Howe International Bridge.
News

U.S. industry leaders plead for truce as tariff fight escalates

By Anita Balakrishnan

Briefing

Descartes buys freight software firm Tai for US$100M

By Murad Hemmadi   |   Aug 25, 2026 | 2:35 PM ET

Big businesses see sovereign AI as an edge—if they know what it is

By Murad Hemmadi   |   Aug 25, 2026 | 2:06 PM ET

Scotiabank beats profit estimates as capital markets surge

By Chaimae Chouiekh   |   Aug 25, 2026 | 1:48 PM ET

Best business newsletter in Canada

Get up to speed in minutes with insights and analysis on the most important stories of the day, every weekday.

Exclusive events

See the bigger picture with reporters and industry experts in subscriber-exclusive events.

Membership in The Logic Council

Membership provides access to our popular Slack channel, participation in subscriber surveys and invitations to exclusive events with our journalists and special guests.

Recent Popular Stories

Exclusive

Star researcher Sanja Fidler raises over US$90M for world model startup

By Murad Hemmadi   |   Aug 19, 2026
A woman wearing a ponytail and a black leather jacket stands on a stage. She looks slightly away from the camera. She wears a microphone and appears to be speaking to an audience.
News

Anthropic wants to add ‘gigawatts’ of AI compute in Canada

By Murad Hemmadi   |   Aug 19, 2026
An image of a man with glasses, wearing a dark blue suit and light blue collared shirt. The man looks slightly away from the camera and a microphone is visible in the foreground. A blue background that reads World Economic Forum is visible in the background.
News

Canada pulls out of trade talks at last moment, citing ‘unfair’ changes by U.S.

By Laura Osman   |   Aug 22, 2026
A shot from the bottom of a flight of red brick stairs of Dominic LeBlanc emerging from a building, with Janice Charette and Mark Wiseman in single file behind him.
News

How Mark Carney plans to wage trade war against the United States

By Laura Osman and Murad Hemmadi   |   Aug 22, 2026
A head-on shot of Mark Carney at a lectern embossed with a maple leaf carved from wood. There is a row of Canadian flags behind him, and he's looking at the camera with a serious expression.
News

‘Lego’ homes or housing solution? Canadians are split on modular housing

By Laura Osman   |   Aug 20, 2026
A shot of a construction worker seen through the door opening of a newly framed wall. The wall is being constructed in a factory setting.
Commentary

Carmichael: America’s wobbly bonds are Canada’s advantage in the trade war. Here’s why

By Kevin Carmichael   |   Aug 24, 2026
A photo of Mark Carney on his way into a news conference, trailed by Dominic LeBlanc. There is a row of Canadian flags on stands behind the lectern Carney is approaching.

Canada's most influential executives and policymakers are reading The Logic

  • CPP Investments
  • Sun Life Financial
  • C100
  • Amazon
  • Telus
  • Mastercard
  • bdc
  • Shopify
  • Rogers
  • RBC
  • General Motors
  • MaRS
  • Government of Canada
  • Uber
  • Loblaw Companies Limited
logic-logo

Canada's Business and Tech Newsroom

100% human-crafted journalism

Newsroom

  • News Tips
  • AI Policy
  • Editorial Disclosures
  • Story Pitches

Company

  • About Us
  • Terms of Service
  • Privacy Statement
  • Corporate Information

Contact

  • Contact Us
  • Advertise
  • FAQs
  • Work at The Logic

© 2026 The Logic Inc. All Rights Reserved.

Trusted by leaders

Error

Account creation failed.

Please email us at [email protected].

Create Account

[wppb-register form_name=”cozmo-registration-form-for-modal”]

I do have an account
Login
or

[wppb-login]

I don’t have an account