Canada → US: what your American buyer pays in 2026
Canada→US is the most volatile route right now. Most goods pay 10% unless they are entered duty-free under USMCA/CUSMA. A long list of Canadian products pays 50% under Section 338 with no CUSMA exemption, and some products are banned outright.
At a glance
| Duty-free threshold | None (since 29 Aug 2025) Verified |
|---|---|
| Duty | 10% Section 301, or 0% if USMCA preference is claimed and the goods qualify Verified |
| Extra tariff | 50% Section 338 on listed products (no CUSMA exemption) Verified |
| Post | Canada Post needs a Zonos Declaration ID (duties prepaid) Verified |
| Who should pay | Seller prepays (DDP). Required on Etsy for Purchase Protection Verified |
Worked example: CAD 40 candle + CAD 15 shipping, Canada Post, USMCA not claimed
| Item | Amount | Paid when / by | Status |
|---|---|---|---|
| Item price | US$28.47 | At checkout | |
| Shipping charged | US$10.68 | At checkout | |
| US duty (normal/MFN rate 0%) | US$0.00 | At checkout: seller collects and pays | Verified |
| Section 301 (Canada, +10%): 10% | US$2.85 | At checkout: seller collects and pays | Verified |
| Zonos Prepay fees (CAD 3.99 + 10% processing fee; we assume the 10% is on the duty amount) | US$3.12 | At checkout: seller collects and pays | Partly verified |
| Buyer pays in total | US$45.11 | US$45.11 at checkout + US$0.00 on delivery | |
| Seller must collect & prepay | US$5.97 | Duties, taxes and fees you need to build into the price | |
- Unverified The US has no import VAT. Duty is calculated on the goods value only, without shipping (a simplification).
Duties & tariffs
The US $800 duty-free de minimis exemption has been suspended for commercial shipments from every country since 29 August 2025. Every shipment, whatever its value, now goes through customs entry and pays any applicable duty.
Genuine person-to-person gifts worth US$100 or less are still duty-free. A business cannot declare a sale or promotional item as a gift.
Since 24 July 2026, Canadian-origin goods pay a 10% Section 301 duty unless they are actually entered duty-free under USMCA/CUSMA. Qualifying is not enough: the preference has to be claimed at entry.
Since 22 August 2026 the US charges a 50% Section 338 tariff on a wide range of Canadian products (including plastics, furniture, ICT and electronics, paper, wood products, textiles and apparel, sports equipment). There is NO CUSMA exemption. The scope changed on 15 September 2026 (it now stacks on Section 232) and some Canadian products have been banned from import since 29 September 2026.
Section 232 sector tariffs apply in addition, e.g. 15–50% on steel/aluminium/copper goods (by metal content tiers since 6 April 2026), 25% on certain upholstered furniture, kitchen cabinets and vanities (scheduled to rise on 1 January 2027).
Section 301 exemptions include informational materials (publications, artworks, photographs, recordings), goods already subject to Section 232 tariffs (steel, aluminium, copper, autos, wood products, semiconductors), civil aircraft, some pharmaceuticals, and specific tariff lines listed in Annex I. Check your HTS code against the annex.
From 24 July 2026, postal shipments pay standard duty rates (including Section 232 and 301 duties). The earlier interim postal duty treatment ended. Free-trade-agreement preference can now be claimed on postal shipments if you supply the documentation.
This guide treats US duty as a percentage of the goods' value, excluding international shipping. That is a simplification of US customs valuation; complex cases differ.
Who pays: DDP vs DDU
Postal parcels to the US must have duties prepaid (Postal Delivered Duty Paid, PDDP). In practice, sending by post with the buyer paying duty on delivery (DDU) is generally not available.
Canada Post only accepts US-bound parcels that have a 13-character Zonos Declaration ID proving duties are prepaid, even for gifts, documents and returns. Zonos charges a CAD 3.99 remittance fee plus a 10% processing fee.
Carriers, labels & paperwork
Canada Post only accepts US-bound parcels that have a 13-character Zonos Declaration ID proving duties are prepaid, even for gifts, documents and returns. Zonos charges a CAD 3.99 remittance fee plus a 10% processing fee. (sources above)
Mandatory electronic 'Entry Type 13' filing for postal goods that are subject to Section 201/232/301 duties or regulated by a Partner Government Agency (FDA, CPSC, USDA etc.) was postponed from 22 October 2026 to 20 January 2027.
Etsy says US-bound packages need a 10-digit HTS code and EU-bound packages a 6-digit code. Without one, a package may be delayed or returned.
CBP's interim final rule (published 24 June 2026) indefinitely suspends de minimis for international mail and created a postal informal entry process for mail shipments up to US$2,500, effective 24 July 2026.
Etsy, eBay & Shopify
Etsy: UK sellers can buy Royal Mail International Tracked DDP labels on Etsy for US orders. Canada Post and Evri US-bound labels on Etsy have been suspended since 25 August 2025. Etsy lists Chit Chats as a Canadian DDP option that can apply the USMCA exemption.
Etsy: US-bound orders must use DDP shipping to qualify for Etsy Purchase Protection. Etsy does not collect US tariffs itself; your carrier or DDP service does.
Shopify Managed Markets stopped supporting DDU on 24 August 2026 in every market where it supports DDP, so buyers pay duties and taxes at checkout. To let buyers pay on delivery instead, you must switch Managed Markets off.
Common pitfalls
- Assuming CUSMA applies automatically. The preference has to be claimed at entry, with origin support, or 10% applies.
- Missing the Section 338 list. Textiles, apparel, furniture, wood, paper, plastics and electronics are all affected. Check your HTS code.
- Shipping goods covered by the 29 September 2026 import bans. Check before you list.
- Going to the post office without a Zonos Declaration ID. Canada Post will refuse the parcel.
FAQ
Do Canadian goods still enter the US duty-free under CUSMA?
Only goods actually entered duty-free under USMCA/CUSMA escape the 10% Section 301 duty. CUSMA does not exempt products on the Section 338 list, which pay 50%. Verified Verified
How do I send a parcel to the US with Canada Post?
Get a Zonos Declaration ID (prepaying any duty) before you go to the post office. Zonos charges CAD 3.99 plus a 10% processing fee. Verified
Sources for this page
- Sending packages to the U.S. – duty updates, Canada Post. Accessed 20 Oct 2026. Verified
- Shipping to the USA? – business updates (guide updated 6 Oct 2026), Royal Mail. Accessed 20 Oct 2026. Verified
- CBP modernizes low-value shipment processing (24 Jun 2026), U.S. Customs and Border Protection. Accessed 20 Oct 2026. Partly verified
- Notice of Actions in Section 301 Forced Labor Investigations (23 Jul 2026), Office of the U.S. Trade Representative. Accessed 20 Oct 2026. Verified
- Answers to common questions about U.S. tariffs, Trade Commissioner Service (Government of Canada). Accessed 20 Oct 2026. Verified
- Forced Labor, Meet Section 301 (law-firm analysis), Troutman Pepper Locke (secondary). Accessed 20 Oct 2026. Partly verified
- Section 338 – Canada HTS list (21 Aug 2026), U.S. Customs and Border Protection. Accessed 20 Oct 2026. Partly verified
- Indefinite Suspension of the De Minimis Exemption for Mail Shipments and New Postal Informal Entry Process (Interim final rule, 24 Jun 2026), Federal Register / CBP. Accessed 20 Oct 2026. Partly verified
- US-Versand / Postal DDP, Deutsche Post DHL. Accessed 20 Oct 2026. Partly verified
- International Mail Entry Type 13 mandatory implementation date extended to Jan. 20, 2027 (14 Oct 2026), U.S. Customs and Border Protection. Accessed 20 Oct 2026. Partly verified
- Information for Managing International Shipments, Etsy Help. Accessed 20 Oct 2026. Verified
- CSMS #69183472 – Updated Global Guidance for International Mail, U.S. Customs and Border Protection. Accessed 20 Oct 2026. Verified
- Navigating Evolving Global Tariff Policies, Etsy Seller Handbook. Accessed 20 Oct 2026. Partly verified
- Managed Markets is ending Delivered Duty Unpaid (DDU) support (11 Aug 2026), Shopify Changelog. Accessed 20 Oct 2026. Verified