How to Avoid US Customs Fees When Shipping to Canada

Whether shipping to the United Kingdom or Canada, paying customs charges and duties and fees is unavoidable. Say you're shipping a parcel of clothes valued at $100; you may be hit with another $50 for customs fees and duties.

While you can't avoid customs charges altogether, you can research how much duties and taxes are charged for certain imported items. This blog post will cover how to minimize the amount of customs charges you'll have to pay and how you can create an optimal shipping experience for shipping to Canada.

What Are the Different Import Fees for Canada?

As of May 2025, a major trade dispute between the U.S. and Canada has triggered retaliatory tariffs affecting a wide range of goods:

For U.S. Merchants Shipping to Canada:

• 25% Canadian tariffs now apply to many U.S.-made goods, including steel, aluminum, liquor, vegetables, clothing, appliances, furniture, and more.
• U.S. vehicles and auto parts with non-Canadian or non-Mexican content face additional 25% duties, even under CUSMA (USMCA).
• Tariff exemptions may still apply to low-value shipments under Canada’s de minimis rules, though this could change pending government review.

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Implications for eCommerce Sellers

• Shipping Costs Are Rising: Expect higher landed costs, especially for automotive, metal, and consumer goods.
• Supply Chain Scrutiny: Tariffs now target non-origin content, making rules of origin compliance critical.
• Opportunities in Low-Value Shipments: For now, de minimis exemptions can help reduce costs for smaller cross-border orders.

Brokerage fees

Brokerage fees cover the cost of the customs clearing process, which includes paperwork, tax, and customs duties. These fees apply to regular ground shipments and cost as much as $100 per shipment. Unfortunately, the customer or recipient has to bear these costs.

Recent US Tariffs and How They Impact Shipping from Canada

Following the US government's imposition of steep tariffs on Canadian imports in early 2025, the Canadian government swiftly responded with its own round of retaliatory tariffs. These developments significantly impact merchants and individuals shipping goods from the United States to Canada, both commercially and personally.

25% Surtax on Most US Goods

As of March 4, 2025, Canada has imposed a 25% surcharge on approximately CA$30 billion worth of US-origin goods, with plans to expand these tariffs to cover an additional CA$125 billion in the near future. These new tariffs apply broadly to both commercial and personal shipments, whether the goods are sent via mail, courier, or freight.

Even if goods pass through third countries before entering Canada, they are still subject to this surtax if their origin is the United States.

Applies to All Shipping Methods

These tariffs cover more than just commercial transactions. Shipments of new or used items that exceed personal exemption limits—whether sent by travelers, postal services, or couriers—are subject to the 25% fee. This adds a significant cost to cross-border eCommerce and personal gifting, especially when combined with existing charges like GST/HST and standard customs duties.

Broad Range of Affected Products

Products hit with the new Canadian tariffs include:

• Alcohol and food products (e.g., liquor, vegetables)
• Apparel and footwear
• Perfumes, furniture, and appliances
• Sporting goods, steel, aluminum
• Automobiles and auto parts

Shipments of US-made vehicles that fail to meet USMCA rules—or contain non-Canadian, non-Mexican content—will also face the full 25% surcharge.

USMCA/CUSMA Is Still a Path to Exemption

Thankfully, there’s a silver lining: if your goods qualify under the USMCA (also known as CUSMA) and meet the rules of origin, they may be exempt from the new surtax. This applies to a wide range of goods that are produced or substantially transformed in the US, Canada, or Mexico.

To benefit from this exemption, you must:

• Provide a Certificate of Origin
• Ensure full compliance with the rules of origin
• Accurately document and declare the product’s origin

Shipments without proper documentation will automatically be assessed the surtax.

Practical Implications for Merchants and Shippers

With the introduction of these tariffs, the cost of shipping US goods into Canada has risen significantly. This can result in:

• Higher prices for Canadian consumers
• Supply chain delays and added complexity
• The need for greater documentation accuracy to ensure compliance
• Increased importance of choosing logistics partners that understand cross-border customs regulations

Are There Any Exemptions?

While most commercial and mail-based shipments are affected, there are a few limited exemptions:

• Temporary personal imports (e.g., travelers bringing goods in luggage)
• Special exceptions for residents of Campobello Island, New Brunswick, due to their unique access through the US

Key Takeaways: What This Means for Shipping into Canada

With these retaliatory tariffs in effect, shipping US goods into Canada now requires greater diligence, planning, and documentation. Merchants must clearly understand whether their goods qualify for USMCA exemptions and should communicate these potential costs to customers upfront to avoid surprises.

Using a shipping platform like Easyship can help simplify the process by calculating duties and taxes automatically, managing compliance requirements, and providing visibility into international shipping costs. That way, both shippers and recipients are better prepared for the new realities of cross-border trade.

Strategies for Avoiding Canadian Custom Fees

The short answer is: You can't. However, you can take steps to reduce the number of custom fees you have to pay.

Self-clear your package

While you can't avoid duties and taxes charges altogether, you can avoid paying high brokerage fees by self-clearing your parcels. You can visit the Canada Border Services Agency and pay any applicable fees.

*To see your CBSA location, check here.

Send your item as a gift

You can avoid GST fees if the item is CAN $20 or less or if the item is a gift and the gift value is CAN $60 or less.

Use a shipping platform for complete duties and taxes visibility

Understanding how much duties and taxes need to be paid on a shipment can sometimes be confusing, so using a shipping platform can help merchants and customers understand all the duties and taxes for international shipments.

Easyship determines all the duties and taxes charges for your international orders. This way, users can minimize hold-ups at customs and unexpected costs while enhancing the overall customer experience.

When creating a shipment, choose the best category that describes your product (i.e., clothing), and Easyship will automatically determine the tax amount.

Related post: What's the Cheapest Way to Ship to the UK?

Customs Fees Shipping from Canada to US with Easyship

By now, you should better understand the different types of duties and taxes for shipping to Canada. For instance, you may be subject to a GST fee depending on the value of the shipped items.

In some cases, you can avoid this fee if the item is CAN $20 or less or the item is a gift under CAN $60 or less.

eCommerce merchants need to understand and communicate the applicable fees involved for shipping items to their customers so there are no hidden surprises.

Say you're shipping clothing to a customer valued at CAN $75; the intended recipient will have to pay between 16-18% in GST taxes. Or, you can choose to bear these costs as the merchant instead of making your customers spend more money than they already have.

Ultimately, using a shipping platform can provide the complete visibility merchants need to make sure there are no hidden surprises when shipping items to Canada. In addition, with Easyship, you gain instant access to benefits such as the following:

• Duties & Taxes Visibility: Easyship works out all duties and taxes for your international shipments to handle your international orders with ease. Calculate your duties for overseas shipments here
• Global Fulfillment: Easyship has warehouse partners on four continents to reach your customers worldwide. Plus, Easyship helps scale up fulfillment capabilities without increasing overhead costs
• Shipping Policy Generator: Our shipping policy generator helps merchants and crowdfunding campaigns generate their shipping policy by providing tracking and insurance options, plus other vital information for your shipping process

Ready to ship? Sign up for a FREE Easyship account and learn how Easyship helps users achieve complete duties and taxes visibility

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Canadian Custom Fee FAQ

Do I have to pay duty on items shipped to Canada?

Yes, duties vary depending on the item being imported into Canada.

Does USPS charge duties to Canada?

No, USPS doesn't charge any extra fees when shipping to Canada.

Are gifts shipped to Canada subject to duties and taxes?

Yes, but gifts valued at CAN $60 or less sent from friends or family members are typically exempt from GST. If the value exceeds this threshold, taxes and duties may apply.

What is the de minimis threshold for shipments into Canada?

The de minimis threshold is CAN $20. Items valued under this amount may be exempt from duties and taxes. However, this does not apply to alcohol, tobacco, or items shipped by courier.

How can I avoid paying high brokerage fees?

You can avoid high brokerage fees by self-clearing your shipment through the Canada Border Services Agency (CBSA). This requires visiting a CBSA office and paying duties and taxes directly.

What is the Harmonized Sales Tax (HST), and where does it apply?

HST is a combined federal and provincial sales tax applied in certain provinces, including Ontario, Nova Scotia, New Brunswick, Newfoundland and Labrador, and Prince Edward Island. Rates vary, with Ontario applying a 13% HST.

Can I ship multiple packages to avoid duties?

Splitting shipments to avoid duties is not recommended. If customs suspects this was done deliberately to evade fees, the parcels may be delayed, returned, or subject to penalties.

Do customs duties apply to used or secondhand items?

Yes, used items are still subject to customs duties and taxes, based on their declared market value at the time of import.

If you found this article informative, you may find the following helpful:

• Here's the Cheapest Way to Ship to Canada
• What's the Cheapest Way to Ship Internationally?
• 10 Most Popular International Shipping Services