The U.S. government's suspension of its de minimis exemption on Aug. 29, 2025, is altering trade dynamics across North America and presenting strategic advantages for Canadian companies in the $5 million to $50 million annual revenue segment.
Under Executive Order 14324, imports valued under $800 no longer receive duty-free entry or expedited customs processing. While this adds costs to low-value shipments from Canada, it enhances the competitiveness of Canadian exports under the U.S.-Mexico-Canada Agreement (USMCA). Goods meeting USMCA rules of origin qualify for preferential tariffs, often zero, compared with 10% to 60% duties on many Chinese imports. Estimates suggest U.S. households could incur an additional $136 annually on affected goods, increasing demand for reliable North American suppliers.
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