Canadian businesses are reporting major disruptions to cross-border shipping following the Trump administration’s elimination of the de minimis exemption for low-value parcels entering the United States. The Universal Postal Union (UPU) says overall postal traffic into the U.S. plunged by more than 80 per cent after the new rules took effect on Aug. 29.
For years, imported goods valued at $800 or less could enter the U.S. without incurring customs duties, streamlining e-commerce and trade. That exemption has now been removed, requiring all shipments to be vetted and charged according to their origin country’s tariff rate — which can range from 10 to 50 per cent. While U.S. residents remain exempt on incoming gifts valued at up to $100 and on souvenirs up to $200, the sudden change has brought international parcel flows to a near standstill.
The UPU said 88 postal operators have suspended some or all parcel services to the United States, citing “major operational disruptions.” Airlines and carriers have indicated they are unwilling or unable to manage duty collection, and most foreign postal operators lack systems linked to U.S. Customs and Border Protection. According to UPU data, parcel traffic into the U.S. dropped 81 per cent on Aug. 29 compared to the week before.
In Canada, many businesses have paused U.S. orders until Canada Post and carriers have systems in place to calculate duties and other fees. For now, Canada Post and some carriers are requiring that tariffs and fees be prepaid, a move that places an additional burden on Canadian businesses and online sellers such as eBay. Industry leaders note this has created widespread uncertainty, as companies wait for clear processes before resuming regular cross-border shipping.
The changes come after a decade-long surge in low-value parcel traffic. Between 2015 and 2025, annual shipments to the U.S. jumped from 134 million to about 1.4 billion, with U.S. Customs and Border Protection processing more than four million de minimis shipments daily. The UPU had warned U.S. officials in advance that the sudden elimination of the exemption could cripple international mail flows — a prediction now borne out by the near-halt in postal traffic.