Canadian entrepreneurs are voicing concern after U.S. President Donald Trump scrapped the de minimis exemption that had allowed packages under US$800 to enter the United States without duty fees. The move, announced through an executive order, threatens a crucial channel of sales for thousands of Canadian small businesses.
For many owners, the exemption was more than a convenience — it was a lifeline. Corinne Pohlmann, executive vice-president of advocacy at the Canadian Federation of Independent Business (CFIB), said that about a third of CFIB members relied on the rule to ship products directly to American customers. “It’s an important source of income for a lot of small companies who now have to rethink how they’re going to deal with their U.S. customers,” she said.
The elimination of duty-free access means Canadian exporters will face new costs and paperwork. While the Canada–United States–Mexico Agreement (CUSMA) offers a path to duty-free trade for goods manufactured in North America, certification is neither quick nor simple. Businesses must provide documentation for every product shipped, and the process is often lengthy and bureaucratic.
Some entrepreneurs are now exploring alternatives to reduce reliance on the U.S. market. Options include targeting domestic buyers or expanding into overseas markets, but shipping expenses and logistical hurdles make those transitions far from easy. For some firms, the stakes are especially high: up to 60 per cent of their customers are based in the United States.
Despite the challenges, many companies are trying to adapt. Some are pursuing CUSMA compliance, while others are renegotiating with their customers to share the burden of new costs. Pohlmann noted that while there is hope the executive order might eventually be reversed, businesses cannot afford to wait. “We just don’t know if this is here to stay or if it’s a blip in time,” she said. “In the meantime, we have to deal with it, and that’s the best that we can do.”