New U.S. Tariffs Complicate Holiday Gift Shipping from Canada

Post by : Mina Rahman

This holiday season has introduced increased complexities for Canadians trying to send gifts to the U.S., as new tariffs by the U.S. government target even modest shipments. The prior exemption for low-value packages is now a thing of the past, significantly impacting those wishing to send presents to friends and family across the border.

Previously, gifts valued at under US$800 were permitted to enter the U.S. without incurring duties thanks to a “de minimis” exemption. With this rule repealed, nearly all parcels may face duties, making even gifts under US$100 subject to tariff assessments. This adds a layer of inconvenience for those hoping to get their holiday deliveries on schedule.

Canada Post has indicated that proof of duty payment is now necessary for all packages heading to the U.S. Shippers must utilize online payment platforms to prepay duties and secure a declaration ID and QR code. This proof must then be presented at the post office prior to dispatching any package to meet U.S. customs stipulations, making it crucial to avoid delays or returned parcels.

This modification notably affects Canadians sending gifts sourced from countries such as China, as these items will now demand formal customs entries. Furthermore, certain items like food may face outright restrictions, complicating the holiday shopping experience.

The new shipping landscape has also diminished options for Canadians. Many traditional courier services have ceased the shipment of small parcels to the U.S., leaving services like FedEx and DHL as the primary choices. Often, hiring a customs broker is a necessity for these shipments. Consequently, sending what used to be a straightforward gift now involves meticulous planning, added time, and increased costs.

Small businesses that depend on cross-border shipments for U.S. clientele are feeling the pressure from these tariffs. For personal senders, the additional steps may seem burdensome; however, they are essential to ensure gifts arrive on time and intact.

To navigate these changes smoothly this holiday season, Canadians should prepare early, utilize approved prepayment applications, and familiarize themselves with updated customs instructions. By being proactive, shippers can manage the increased complexity and ensure their gifts reach their intended recipients without surprises.