Top Small Business Story Of The Day - Products Under $800 may be subject to Tariffs!

Date: April 5, 2025
New U.S. Import Rules Could Hit Canadian Small Biz Hard

Canadian exporters of low-value goods to the U.S. face new uncertainty as changes to the American de minimis exemption threaten to raise costs and reduce cross-border competitiveness.

The recent changes to the U.S. de minimis exemption are sending shockwaves through the Canadian small business community. Effective May 2, 2025, the U.S. will no longer allow goods valued at $800 or less from China and Hong Kong to enter the country duty-free. This marks a significant shift in American trade policy and has implications that extend beyond Asia.

Although the rule applies only to China and Hong Kong, early signals suggest that Canada and other countries may soon face similar restrictions. That’s a potential problem for Canadian small businesses, many rely on this exemption to send lower-value products to U.S. customers without incurring customs duties or lengthy paperwork.

Should the U.S. expand this policy, Canadian SMEs could see shipping costs rise, added red tape, and decreased price competitiveness in the massive U.S. consumer market. For small firms operating in e-commerce, where margins are already tight, this could lead to a significant drop in sales.

Industry experts warn that the most vulnerable businesses depend on fast, low-cost shipping to American buyers. They urge Canadian entrepreneurs to begin preparing by reviewing supply chains, diversifying markets, and updating pricing strategies to offset future tariffs or fees.

Why It Matters:

The U.S. is Canada's largest trading partner. Any change that increases the cost or complexity of doing business with American consumers could have outsized consequences for small enterprises. Staying informed and adaptive is no longer optional—it’s critical.

Source: Reuters

Tags: #International Trade #SMEs #Canada Business #Cross Border Ecommerce #Tariffs #Trade Policy