Do you regularly ship packages from Canada to the United States? On February 20, 2026, the U.S. Supreme Court struck down part of the tariffs imposed by the Trump administration under theāInternational Economic Emergency Powers Act (IEEPA). Many Canadian SMEs then hoped for a return to the old system, particularly regarding the threshold Ā«de minimisĀ» of $800 under $ US, which had previously exempted small packages.
The reality is more nuanced. Three months after the decision, the exemption de minimis has not been restored, a new universal fee of 10 % has gone into effect, and customs processing times have increased. For a Canadian shipper, navigating this new landscape requires specific strategies.
Here is the complete guide to ship to the United States in 2026 no unpleasant surprises ā based on official announcements from carriers, recent executive orders, and feedback from the field.
What the Supreme Court Really Changed (and What It Didn't)
The decision of February 20, 2026 invalidated the use of the IEEPA to impose tariffs. In response, the U.S. administration withdrew the IEEPA duties and replaced them, effective February 24, 2026, with a universal duty of 10% under Section 122 of the Trade Act of 1974, valid for a maximum period of 150 days.
In short, the name of the fee has changed, but the cost for your packages remains high.
The de minimis exemption remains suspended
As of August 29, 2025, the United States has suspended the exemption de minimis which had previously exempted commercial shipments valued at less than $800 from duties and taxes. This suspension was established by an executive order separate from the IEEPAāand was therefore not affected by the Supreme Courtās ruling. A presidential decree issued in the spring of 2026 even formally confirmed the extension of this suspension.
In practical terms, Every commercial package shipped from Canada to the United States is now assessed and taxed, regardless of its value.
New costs to factor into your selling prices
There are now three categories of fees to consider for your cross-border shipments. Ignoring them means quietly eroding your profit margin.
1. The universal right to 10 % (Section 122)
Applied to the declared customs value of the goods. For a package valued at 150 CAD, expect approximately 11 CAD in additional duties, excluding shipping.
2. Fare increases by carriers
UPS and FedEx implemented a general rate increase (GRI) averaging 5.9% in Q3 2025 and Q1 2026, respectively, on December 22, 2025, and January 5, 2026. In practice, several industry analysts note that the actual impact is closer to 8ā12% year-over-year, due to new rules on additional handling fees and Ā«oversized packageĀ» surcharges, which have been extended to shipments exceeding 10,368 cubic inches in volume. Purolator, for its part, implemented an average increase of 5.7% in Q3 on December 1er September 2025, and adjustments for LTL freight effective September 1er January 2026.
3. Brokerage and processing fees
With the end of the de minimis, Even small packages require a complete customs declaration. Carriers now charge for these services on a case-by-case basis, typically between $10 and $25 per shipment, depending on the service selected.
A summary table to help you make pricing decisions
| Package type | Before August 29, 2025 | Since May 2026 |
|---|---|---|
| Commercial shipment < 800 $ US | Duty-free | 10% fee (%) plus brokerage commission |
| Commercial shipment > 800 $ US | Applicable laws | Rights + 10 additional % |
| Personal gift < $100 $ US | Exempt | Exempt (between individuals) |
| Document | Exempt | Exempt |
Documentation Requirements That Can No Longer Be Ignored
Canada Post now requires a Declaration ID (13-character code) before a label can be produced for the United States. This code verifies that duties have been prepaid by a qualified partner recognized by U.S. Customs and Border Protection (CBP).
For each package, be sure to include the following items:
- A detailed commercial invoice with a precise description of the goods (not just «gift» or «samples»).
- The code Off-topic (Harmonized System) with at least six digits for each item.
- The declared value must match the actual sale priceāunder-declaration poses a legal risk.
- The country of origin, not just the country of shipment.
- Your sender information and the recipient's IRS number or EIN.
Four Strategies to Minimize the Impact on Your Small Business
Consolidate your shipments
Instead of shipping ten small packages throughout the week, consolidate them whenever possible. Brokerage fees are largely fixed per shipment, not per item. A well-planned consolidation can reduce these costs by a factor of five or six.
Rethink packaging for volumetric weight
Carriers charge based on the higher of the actual weight or the volumetric weight. Reducing the height of a box by 1 to 2 cm can move a package into a lower rate bracket and offset part of the 2026 rate increase.
Compare services every quarter
The price differences between UPS, FedEx, Purolator, DHL, and Canada Post widened in 2026. A service that was cost-effective in January may no longer be so in May. A multi-carrier comparison tool or a specialized broker can help identify the right partner for each U.S. postal zone.
Connect with your U.S. customers
Clearly display prepaid customs fees at checkout. Transparency helps prevent package refusals and chargebacksāone of the main sources of losses for Canadian e-commerce businesses since the fall of 2025.
Things to watch for in the coming months
The 10% tariff imposed under Section 122 is valid for a maximum of 150 days without action by the U.S. Congress. An extension, a rate adjustment, or a new court ruling is expected in the summer of 2026. Keep an eye on official communications from theāOffice of the United States Trade Representative and SME associations such as the FCEI remains essential.
Conclusion: Compliance has become a competitive advantage
Shipping to the United States in 2026 means accepting that no package is «invisible» to customs anymore. SMEs that quickly master the new paperwork, consolidate their shipping volumes, and choose the right rate plans will remain competitive; the others will see their margins erode shipment after shipment.
At Shipping Store, Every day, we help Quebec businesses and individuals optimize their cross-border shipments, manage customs compliance, and compare carriers in real time for each shipment. Visit expertshipping.ca to get a quote or schedule a call with one of our advisorsāin just a few minutes, youāll find out how much you can save on your next shipment to the United States.