Navig8 Freight Breaks Down the End of the $800 Rule

For years, Canadian businesses enjoyed a trade perk that made selling to U.S. customers easier: the “de minimis” exemption. It allowed shipments valued at $800 USD or less to cross the border into the U.S. duty-free, with minimal paperwork. That rule officially ended on August 29, 2025.

This change is more than a footnote in trade policy, it’s a fundamental shift that will reshape how Canadian exporters and U.S. importers do business.

What Changed?

A Presidential Executive Order finalized in July removed duty-free treatment for shipments under $800. Now, all shipments, no matter how small, must clear U.S. customs as regular imports.

Here’s what that means in practice:

• Duties and taxes apply on all goods, even under $800.

• Customs entries are mandatory for each shipment.

• Carriers like FedEx, UPS, and DHL must file import declarations.

• Postal services must collect duties before delivery.

Why the Change?

The U.S. Customs and Border Protection (CBP) cited abuse of the exemption for tariff avoidance, counterfeit goods, and even illicit drug trafficking. By eliminating the rule, the U.S. government aims to close these gaps and strengthen oversight at the border.

What This Means for U.S. Importers

If you’re importing goods under $800 into the U.S., you’ll face:

• Higher costs due to duties, taxes, and per-package fees.

• Added paperwork with customs entry filings and possible bond requirements.

• Potential delays as carriers adjust to new filing requirements.

For e-commerce retailers, manufacturers, and distributors relying on low-value imports, this could significantly impact landed costs and fulfillment timelines.

What This Means for Canadian Exporters

For Canadian businesses, the U.S. is the single largest export market. The end of the de minimis exemption creates new challenges:

• Pricing Pressure: Canadian sellers who ship direct-to-consumer (D2C) to the U.S. may find their products less competitive once duties are factored in.

• Increased Compliance: Every shipment now requires proper documentation and customs entry filings. Errors could result in delays or penalties.

• Higher Shipping Costs: Carriers may increase fees to cover their new filing responsibilities.

  
  

The bottom line? Canadian businesses must factor duties and compliance costs into their export strategy or risk losing their edge in the U.S. market.

Navigating the New Normal

The elimination of the de minimis exemption is one of the most significant shifts in U.S. trade policy in a decade. While it aims to close enforcement gaps, it also introduces new friction for Canadian exporters and U.S. importers alike.

At Navig8 Freight, we specialize in helping businesses on both sides of the border adapt to regulatory changes with clarity and confidence.

Have questions about how this will affect your business? Contact us today to build a strategy that keeps your supply chain moving.

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