What Canadian Shopify Brands Can Do About US Tariffs and De Minimis
In early February, the US announced 25% tariffs on Canadian goods and moved to end the duty-free treatment of low-value parcels. Both have since been paused, but the uncertainty is real for Canadian brands that sell to US customers.
Published Feb 14, 2025. Author: Ecomm Guys. 4 min read.
Key Points
- The US announced 25% tariffs on imports from Canada and Mexico, then paused them for 30 days.
- The de minimis exemption, which lets shipments of US$800 or less into the US duty free with little paperwork, was scrapped and then temporarily reinstated.
- Shopify now lets all merchants show and charge duties at checkout.
- Canadian sellers should review product origin, landed cost pricing, and US fulfilment options now, before rules change again.
What's Happened So Far
In early February, President Trump imposed 25% tariffs on imports from Canada and Mexico and an additional 10% on goods from China. The orders also removed the de minimis exemption, the rule that lets shipments valued at US$800 or less enter the US free of duties and with minimal paperwork. The tariffs on Canada and Mexico were then paused for 30 days.
For Canada, the de minimis change was paused along with the tariffs. For goods from China, it took effect briefly and was then reversed on February 7. According to the executive order, the exemption will be removed again once adequate systems are in place to process and collect tariff revenue. Nothing about the current pause is permanent.
Why De Minimis Matters to Canadian Sellers
For many Canadian ecommerce brands, de minimis is what makes shipping individual orders to US customers simple. Financial Post reported that GoBolt, a Canadian logistics company, ships around 65% of its deliveries to the US, and virtually all of them are valued at US$800 or less. Those shipments cross with an electronic manifest rather than a formal customs entry.
Customs brokers quoted in the same report said that without de minimis, shippers would need formal clearance, which is more work and brings duties and fees. One Canadian founder told the paper that 70% of her company's sales come from the US. For brands like that, a change to de minimis affects pricing, delivery times, and margins all at once.
What Shopify Has Changed
Shopify president Harley Finkelstein said on the company's fourth quarter earnings call that all Shopify sellers can now show and charge duties during checkout, so customers aren't surprised at the door. TechCrunch reported that Shopify rolled out that feature widely, along with a search filter that helps shoppers find stores in their own country, and that more updates to simplify international sales are planned.
Shopify has also argued publicly that de minimis protections should stay, saying they keep costs low for small businesses that trade across borders.
What to Prepare Now
You can't plan around a policy that changes week to week, but you can make your store ready for either outcome.
- Record the country of origin and HS code for every product in Shopify. Customs and duty tools depend on that product data.
- Test showing and collecting duties at checkout for US orders, so you can switch it on quickly if de minimis ends.
- Model landed cost for your best sellers with and without a 25% tariff, and decide where you'd absorb it, pass it on, or change the offer.
- Ask your 3PL about US warehousing options and what it would take to move some inventory south of the border.
- Draft a short shipping and duties note for your US customers that you can publish the day rules change.
Keep Pricing Clear for US Buyers
Whatever happens, US shoppers respond badly to surprise costs. If duties apply, show them at checkout so shoppers pay them with their order. If you decide to include duties in your US prices, say so on the product page. Clear pricing protects conversion even when the total goes up.
This Month's To-Do List
This month, fill in country of origin and HS codes, run the landed cost model for your top products, and talk to your fulfilment partner. Then decide in advance what you'll do if the tariffs or the de minimis change take effect, so you aren't making those calls under pressure.
If you sell to US customers and want help with duties, Markets, or pricing in Shopify, book a call with our team.
Sources
- Shopify pushes for open trade as Trump delays import exemption TechCrunch, February 2025
- 'Chaotic moment': How Trump threw a wrench in the gears of Canadian e-commerce Financial Post, February 2025
- Shopify announces product adjustments to address US tariffs Retail Brew, February 2025