US Edition‘An important source of income’: Small businesses worry as U.S. ends duty-free exemption
The U.S. ended its duty-free exemption for shipments under $800, causing new tariffs and customs hurdles that threaten the survival of many small Canadian and Indigenous businesses.
- On Aug. 29, 2025, the United States government suspended the de minimis exemption, requiring customs entry and duties on shipments previously duty-free under $800.
- The administration argued the exemption had become a loophole exploited by foreign sellers and criminals, following a May of 2025 change that reduced low-value shipments from China and Hong Kong by 43%.
- U.S. customs now requires a 10-digit HTS code and customs bonds for carriers including UPS and DHL Express, while international postal services can charge $80 to $200 flat duty for six months.
- Some Canadian small businesses and Indigenous sellers such as Tribal Spirit Drums and Music and Cedarlilie Beads have halted U.S. sales, while many national postal services and over 25 countries suspend shipments to the U.S., disrupting delivery routes.
- U.S. merchants stand to gain market share as Indigenous and trade bodies, including the Assembly of First Nations, seek government action and legal reviews.
48 Articles
48 Articles
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