Industrial News
U.S. Ends Duty-Free Treatment for Low-Value Chinese Imports, Impacting Canadian SMEs
May
The U.S. ended the de minimis rule in May 2025 for low-value goods imported from China (previously allowing duty-free entry for goods valued under $800). Though not directly targeting Canada, the change has significantly affected small and medium-sized Canadian businesses.
In 2023, over 90% of U.S. low-value imports qualified under the de minimis exemption, with 85–90% of those coming from China. After the threshold was raised in 2016, parcel imports grew to 1.36 billion annually. Canadian businesses, such as bridal accessories maker Blair Nadeau, report delays, higher costs, customer complaints, and a 30–40% drop in sales due to the new documentation requirements for goods labeled as “Made in Canada” but produced overseas.
Additionally, shipping company Chit Chats noted that stricter U.S. border inspections have caused frequent returns, especially for goods using Chinese materials that now face sourcing certification issues. Canada Post officially acknowledged the issue on May 23.