How Canadian E-commerce Companies Can Avoid Trump's New $200 Shipping Duties
Published: September 8, 2025 | Reading time: 5 minutes
If your Canadian e-commerce business ships products to US customers, August 29, 2025, marked a significant turning point for your operations. President Trump's elimination of the de minimis exemption means that every package you send across the border—no matter how small—now faces customs duties that can reach up to $200 per shipment.
For many Canadian online sellers, this policy change represents an existential threat to their US market expansion. But it doesn't have to be the end of your American growth story.
What Changed and Why It Matters
For decades, the de minimis exemption allowed packages valued under $800 USD to enter the United States duty-free with minimal paperwork. This made cross-border e-commerce simple and cost-effective for Canadian businesses selling to American customers.
That exemption is now gone.
The immediate impact:
- Every shipment from Canada to the US now faces customs duties
- Duties can range from 25-30% of the shipment value, with potential charges up to $200 per package
- Additional customs paperwork and processing delays
- Significantly higher shipping costs that must be absorbed or passed to customers
The Real Cost to Your Business
Let's look at some real-world examples:
Small Item Seller (Average Order Value: $50)
- Previous cost: $0 duty + standard shipping
- New cost: $15-25 duty + standard shipping + customs delays
- Total impact: 30-50% increase in customer cost
Mid-Range Product Seller (Average Order Value: $200)
- Previous cost: $0 duty + standard shipping
- New cost: $50-60 duty + standard shipping + customs delays
- Total impact: 25-30% increase in customer cost
These aren't small increases that customers can easily absorb. For many businesses, these additional costs make their products uncompetitive in the US market.
Why Traditional Solutions Don't Work
Raising Prices: Passing duties to customers often results in abandoned carts and lost sales, especially for lower-value items where the duty represents a large percentage of the purchase price.
Absorbing Costs: Taking on $15-200 in duties per order quickly erodes profit margins to unsustainable levels.
Focusing Only on Canada: Limiting yourself to the Canadian market means missing out on the world's largest e-commerce market, which is 10 times the size of Canada's.
The Dual-Country Fulfillment Solution
The most effective way to avoid these new duties entirely is to eliminate cross-border shipping altogether. Instead of shipping from Canada to the US, you can store inventory in both countries and ship domestically within each market.
How it works:
- Canadian orders: Ship from Canadian warehouses (business as usual)
- US orders: Ship from US warehouses (now domestic shipping—no duties)
- Result: All shipments become domestic, avoiding duties completely
This approach transforms the duty problem from a recurring cost into a one-time logistics solution.
Why Ziing's Cross-Border Fulfillment Makes Sense
At Ziing Fulfillment, we specialize in exactly this type of cross-border challenge. Our network operates fulfillment centers in both Canada and the United States, allowing your business to serve customers in both markets without any cross-border shipping.
Our end-to-end solution includes:
- Warehousing & Storage: Secure storage for your inventory in both Canadian and US facilities
- Pick and Pack Fulfillment: Professional order processing and packaging
- Automated Order Processing: Seamless integration with your e-commerce platform
- Customs Brokerage: Expert handling of any international logistics requirements
- Inventory Management: Real-time tracking across both locations
- E-commerce Integrations: Direct connectivity with Shopify, Amazon, and other platforms
The competitive advantage: Most fulfillment companies operate in only one country. Our dual-country network means you can offer your customers fast, duty-free delivery regardless of which side of the border they're on.
Real-World Success Example
Consider a Canadian company selling $100 artisanal products to US customers:
Old Model (Cross-Border Shipping):
- Product: $100
- Shipping: $15
- Duty: $25-30
- Total Customer Cost: $140-145
New Model (US Fulfillment):
- Product: $100
- Domestic US Shipping: $8-12
- Duty: $0
- Total Customer Cost: $108-112
The customer saves over $30 per order while you maintain competitive pricing and healthy margins.
Getting Started: Next Steps for Your Business
Assess Your US Market Impact: Calculate how much of your revenue comes from US customers and what the new duties would cost your business annually.
Evaluate Inventory Distribution: Determine which products make sense for dual-country storage based on demand patterns and inventory turnover.
Choose the Right Fulfillment Partner: Look for a provider with proven cross-border expertise, technology integrations, and facilities in both countries.
The Window of Opportunity
While this policy change creates challenges for many Canadian e-commerce businesses, it also creates a significant competitive advantage for those who adapt quickly. Companies that solve the duty problem early will capture market share from competitors who are still struggling with the new costs.
The businesses that act decisively now—while their competitors are still figuring out their response—will be best positioned to thrive in this new trade environment.
Ready to Eliminate Cross-Border Duties?
Ziing Fulfillment helps Canadian e-commerce companies serve their US customers without paying a single dollar in duties. Our dual-country fulfillment network turns the new trade barriers into your competitive advantage.
Ready to learn how this works for your specific business?
Contact Bruno Steppuhn, our fulfillment expert: bsteppuhn@ziing.com
Or visit ziing.com/fulfillment to discover how we're helping Canadian businesses maintain their US growth trajectory.
Don't let new trade policies derail your American expansion. With the right fulfillment strategy, you can serve US customers better than ever—while avoiding duties entirely.
