On February 1st 2025, US President Donald Trump signed a series of executive orders with the intent of placing 25% tariffs on all Canadian and Mexican goods entering the US, as well as a 10% tariff on all Canadian energy and energy resources, a 20% tariff on all Chinese products entering the US, and a discontinuation of Section 321 (19 USC 1321), suspending the $800 de-minimis for all goods entering the US from these three countries.
In the intervening months, there have been a series of changes to US trade policy that have fundamentally changed how businesses conduct their cross-border and international shipping.
Although concrete answers are incredibly difficult to offer at this time, we at Freightcom hope to offer as clear and concise a collection of key information that can provide some sense of guidance as the situation evolves.
The information provided in this article is for general informational purposes only and does not constitute legal, tax, or customs advice. While we strive to ensure accuracy, we make no guarantees and assume no responsibility for any errors, omissions, or outcomes resulting from the use of this information. Customers are responsible for verifying requirements with the appropriate customs authorities or trade professionals before shipping.
All low-value shipments to the U.S. are now dutiable and must meet full admissibility requirements. Non-postal parcels require a proper customs entry; postal parcels face new per-item or ad-valorem duties.
Goods that qualify as USMCA-originating remain exempt from the new IEEPA tariffs applied by the U.S. this year. Ensure you have a valid USMCA certification of origin on file.
If your goods do not qualify under USMCA: the U.S. has imposed additional IEEPA tariffs on Canadian goods (generally 35% since Aug 1, 2025). Sector exceptions may apply, but assume exposure unless USMCA rules are met.
Section 301 rates (many categories 25% and some scheduled at 50%) apply based on country of origin, even if shipped from Canada. Review your HTS classifications and origin determinations.
U.S. Merchandise Processing Fee (MPF) applies on formal entries (0.3464% ad valorem; min and max amounts apply), plus potential brokerage and other user fees.
To avoid delays, unexpected costs, and unhappy customers, Canadian businesses must adjust their shipping practices to comply with the new U.S. tariff and brokerage environment. Below are some critical steps to follow:
All Ground/Standard shipments entering the U.S. will be processed through U.S. Customs, and brokerage fees will now apply. This will include:
It is important to understand your options through Freightcom that are available to you.
DDP (Delivered Duty Paid) – This option is where the clearance fees, duties, taxes and tariffs are paid by the shipper, so no additional charges are place on your customer. Please contact your Account Manager to enable this feature on the system if not presently available on your account or email sales@freightcom.com.
DDU (Delivered Duty Unpaid) – This option is where the clearance fees, duties taxes and tariffs are collected from the receiver of the shipment.
✅ Action: Factor these costs into your quotes and invoices. Update pricing models or checkout systems (if eCommerce) so customers are not surprised at delivery.
To benefit from tariff exemptions under CUSMA/USMCA, you must include a properly completed certification of origin with your commercial invoice.
Key requirements:
✅ Action: Ensure this document is prepared accurately and attached to every shipment. Do not know if you are CUSMA compliant: Check out our extensive guide.
U.S. Customs requires full and correct data. Errors or omissions lead to costly delays, inspections, or penalties.
Your invoice must include:
✅ Action: Double-check invoices before shipping. Use customs broker tools or software validation to avoid errors.
Certain items face extra scrutiny or restrictions when shipping into the U.S. (e.g., textiles, food, alcohol, cosmetics, electronics).
✅ Action: Check product eligibility and required permits before shipping. Non-compliance can result in fines, seizures, or permanent import bans.
U.S. Customs may audit shipments months after clearance. You are responsible for maintaining:
✅ Action: Store records for at least 5 years. Establish an internal compliance file for U.S.-bound shipments.
Transparency builds trust. Let your U.S. customers know:
✅ Action: Update your website FAQs, checkout messaging, and customer service scripts immediately.
The following are the Canadian goods most notably affected by the US tariffs as of August 2025. Due to the constantly changing nature of US trade policy, be sure to refer to a customs broker.
From updated certification requirements to the suspension of the US de minimis to the increased scrutiny around Rules of Origin, ensuring your shipments qualify for preferential tariff treatment under the Canada-United States-Mexico Agreement (CUSMA) is no longer a simple task.
To help Canadian businesses adapt to these changes and maintain a competitive edge in North American trade, Freightcom proudly presents our 2025 CUSMA Compliance Guide.
This concise, practical resource is designed to help shippers understand the essentials of CUSMA, from accurate HS classification to documentation best practices, supplier due diligence, and preparing for customs verifications. Whether you’re managing parcel or freight shipments, this guide provides actionable steps to simplify compliance and avoid costly disruptions.
With the 2026 CUSMA review on the horizon, staying compliant is not just about avoiding penalties—it’s about securing long-term trade advantages and maximizing profitability across North America.
We trust this guide will serve as a valuable tool for you and your team as you navigate today’s evolving cross-border landscape and remain a reliable reference for your shipping operations year-round.
In order to prove CUSMA eligibility, a completed certificate of origin is necessary for all goods shipped. While there is no formal template for the certificate of origin, the following nine pieces of information must be included for it to be valid:
A declaration that the goods qualify as originating under CUSMA.
Name, address, telephone number, and email of the person completing the certification.
If the exporter is also the certifier, this can be omitted or noted as "Same as certifier"
If more than one producer, “Various producers” can be noted, but the producer list must be available upon request.
If the certification is to apply for all your products and shipments, "Various Importers" can be noted.
Accurate description of the goods and the 6-digit HS code.
The rule under Article 4.2 (e.g., A, B, or C from the Rules of Origin) that applies.
If the certificate covers multiple shipments of identical goods over a period, state the start and end dates (up to 12 months).
Signature, date of signing and the name and title of the person certifying.
Note that while in most cases the certificate of origin can be certified by either the producer, importer, or exporter of the goods, in the case of goods entering Mexico it can only be certified by the importer.
In short, an Executive Order is a signed order issued by the President of the United States that dictates actions to be taken by the executive branch of the US government regarding the governance of the country.
While these orders can be reviewed and overturned by the Supreme Court in some cases, the sitting President is the only one with the ability to issue, modify, or revoke these orders.
At this time, the US has imposed a 50% tariff on steel, copper, and aluminum; a 25% tariff on Canadian-manufactured vehicles being exported to the US; and a 10% tariff on energy goods such as crude oil and potash.
If a Canadian business is exporting goods to the US, the goods will be subject to a 35% tariff if their country of origin is any non-CUSMA country. This means that any goods that have been grown, majority manufactured, or are made of majority materials sourced from anywhere other than Canada, Mexico, or the US, they fall under the executive order and are subject to the tariffs.
Section 321 is a provision within U.S. customs law that, until recently, permitted the duty-free importation of goods valued at $800 USD or less.
This exemption, commonly referred to as the U.S. De-minimis Value, was established to facilitate international trade and minimize administrative burdens for low-value shipments.
By keeping shipments under the $800 threshold, importers could generally bypass formal customs entries and additional fees, enabling swift, duty-free deliveries to U.S. consumers.
Prior to August 29th, 2025, goods entering the US from Canada, Mexico, and China were exempt from all duties and tariffs if their declared value is under $800 USD.
Per this new executive order, all commercial goods entering the US are now subject to US tariffs regardless of declared value.
CUSMA (Canada-United States-Mexico Agreement), known as USMCA in the US, replaced NAFTA in 2020. While it maintains the core principle of free trade, CUSMA introduces modernized rules for areas like eCommerce and digital trade, stronger intellectual property protections, and enhanced labor and environmental standards. It also specifically supports small and medium-sized businesses (SMBs). For Canadian businesses, CUSMA aims to facilitate trade and keep most goods duty-free between the three countries, provided the "rules of origin" are followed.
CUSMA compliance offers significant benefits, including duty-free or reduced tariffs, fewer steps in determining duties owed, stronger and more stable North American supply chains, and increased predictability in operations. This ultimately leads to lower costs, better customer service, and enhanced competitiveness. Conversely, non-compliance can lead to severe consequences such as extra tariffs (potentially 35-40% for transshipped goods), fines ranging from hundreds to tens of thousands of dollars, retroactive billing for duties with interest, revocation of CUSMA benefits, and even legal trouble, including embargoes or jail time for serious violations.
CUSMA's Rules of Origin (ROO) are specific requirements that goods must meet to prove they were made or significantly transformed in Canada, the U.S., or Mexico, thus qualifying for duty-free or reduced tariffs. There are four main types:
Accurate HS code classification is paramount, as CUSMA rules are directly tied to these codes; incorrect classification can lead to penalties or loss of duty-free status.
To claim CUSMA benefits, a Certification of Origin is essential. This document proves goods qualify under the agreement and must be available to the importer at the time of customs declaration. While there's no official form, it must include 9 specific data elements. This information can even be placed directly on the invoice. Unlike NAFTA, the exporter, producer, or importer can complete the certificate, though Mexico only accepts the importer as the certifier.
Businesses must also keep a comprehensive set of supporting documents, including purchase orders, bills of materials, supplier declarations, costing records, shipping records, export documents, and internal compliance reviews. Record retention periods are crucial: Canada requires records for 6 years after export, while the U.S. and Mexico require them for 5 years after import/export. Records must be well-organized, accurate, consistent, and securely stored for quick retrieval, as customs agencies can audit origin claims years later.
While CUSMA provides a shared framework, each country has specific import rules and de minimis thresholds (the monetary value below which duties/taxes are exempt for courier shipments):
Effective CUSMA compliance requires a continuous and proactive approach:
Under CUSMA, the Certification of Origin can be completed by the exporter, producer, or importer. However, it's crucial to remember that Mexico only accepts the importer as the certifier.
Tips for making the process easier include:
Businesses can access various official resources for CUSMA compliance: