In the fallout from the February 20 U.S. Supreme Court decision, which overturned many tariff actions instituted by the Trump administration, some Canadian exporters had hoped that the ruling might restore the de minimis customs exemption.
Following the decision, President Trump issued an Executive Order:
CONTINUING THE SUSPENSION OF DUTY-FREE DE MINIMIS TREATMENT FOR ALL COUNTRIES
That Executive Order makes clear that de minimis remains suspended. There is little or no support in Congress for any change.
The U.S. "de minimis" rule previously allowed shipments of goods valued at $800 or less to enter the country duty-free with minimal customs processing. The U.S. ended this exemption for commercial shipments on August 29, 2025, increasing costs and complexity for Canadian businesses and their US consumers.
There is a program that allows Canadian shippers to pre-pay duties for low-value shipments through the post office. However, this program has not been used widely, because until this week it required payment of MFN duties (averaging 16% for apparel), 35% IEEPA tariffs and various fees. The Supreme Court decision, by overturning IEEPA tariffs, will lower the tariffs owing under the postal DDP program, but it remains a prohibitively expensive shipping option.
A recent story in the Globe and Mail (Six months after a tariff exemption expired, small businesses scramble to cope with a labyrinth of rules) highlighted the ongoing impact of the end of de minimis. Many of the companies featured in that story produce apparel.
CAF Contact: Bob Kirke, bkirke@apparel.ca