Trump’s tariffs could make sending a package or crossing the border costlier — and more complicated

President Donald Trump’s executive order on tariffs has the potential to complicate things for Canadians crossing the border or sending packages to the United States. The order not only imposed tariffs on most Canadian goods but also eliminated the de minimis customs exemption, which allowed people to bring or ship up to $800 US worth of goods per recipient per day into the U.S. without paying duty.

The removal of the de minimis provision could have significant implications for Canadians, particularly those who frequently travel back and forth across the border. The exemption has made it easier for Canadians and Americans returning to the U.S. as they did not have to make a formal declaration or pay duty on goods worth less than $800 US. The exemption has also facilitated trade and travel, with billions of dollars worth of goods entering the U.S. through this provision.

The impact of this executive order extends beyond just tariffs on Canadian goods. It affects individuals and businesses shipping parcels to the U.S. as well. The Federal Register notice revealed that all mail shipments from Canada would now be subject to formal entry provisions, regardless of their value. This means that cumbersome customs declarations would be required for shipments of Canadian goods to the U.S., in addition to the proposed 25 per cent tariff.

Jesse Mitchell, director of business development for customs broker Strader-Ferris International, highlighted the administrative burden that this change would impose. Requiring all mail shipments from Canada to go through formal entry would create challenges for both individuals and businesses, adding to the cost of shipping goods to the U.S.

Furthermore, the elimination of the de minimis exemption for shipments from China has already come into effect. This means that Canadian companies shipping Chinese-made goods to the U.S. will now be subject to tariffs, even if the value of the goods is less than $800 US. Mitchell explained that a formal customs clearance requires more work and incurs higher costs compared to a de minimis clearance.

In conclusion, President Trump’s executive order on tariffs has the potential to complicate cross-border travel and shipping for Canadians. The removal of the de minimis exemption and the imposition of tariffs on Canadian and Chinese goods could lead to increased costs and administrative hurdles for individuals and businesses alike. It remains to be seen how these changes will be implemented and the extent of their impact on Canadians.