Canadian small businesses that ship products to the United States are about to face new costs and rules at the border. Starting August 29th, the U.S. will suspend its duty-free threshold of $800.
This means that all shipments from Canada to the U.S. will now require duties to be prepaid before they can cross the border. Most goods will face a 35 percent duty rate under the new rules, and every shipment will need proof of prepaid duties.
Canada Post says it is working with Zonos®, a company that provides cross-border solutions, to make it easier for businesses to pay duties in advance through their shipping platforms.
The change is expected to bring higher costs, new steps in the shipping process, and possible impacts on U.S. sales. Many small businesses are worried about the effect this will have on their bottom line.
Supporters of local shopping say this is another reason for Canadians to buy from small businesses at home, as companies adjust to the new rules and the loss of income from American customers.