Canada Still Works for U.S. Sellers

"Cross-border ecommerce between the United States and Canada has rarely been more uncertain than in 2025. Nonetheless, for American merchants, Canada remains an easy first step into international sales. Canadian shoppers buy heavily from U.S. sites. But this year's holiday shopping season is testing even experienced sellers. Tariffs, a postal strike, and shifting taxes have turned what should be a smooth northern route into a logistical puzzle."

""The current administration really took a look at what countries are asking [American businesses] to pay when we're shipping into their countries and what they're charging as a premium on U.S. goods," said Rich. The result was a tariff for the United States that upset North-South relations. The back-and-forth trade negotiations included on-again, off-again reciprocal tariffs and surtaxes from the Canadian government - in some cases, up to 25%."

""Nothing is more frustrating than thinking you paid for a product and then getting surprised at the door that you have to pay this, that, and the other duty," said Rich. Unfortunately, this is a common occurrence for Canadian shoppers buying from American ecommerce stores. Here are a few examples of what Canada typically adds. Duties. Based on the type of goods, their origin (including whether they qualify under the United States-Mexico-Canada free-trade agreement or other treaties), and classification (harmonized system code)."

Cross-border ecommerce between the United States and Canada faces unusually high uncertainty in 2025. Canadian shoppers continue to buy heavily from U.S. sites, but the holiday shopping season strained even experienced sellers. Tariffs, a postal strike, and shifting taxes disrupted what had been a smooth northern logistics route. The U.S. administration examined foreign charges and premiums on U.S. goods, prompting reciprocal measures. Canada imposed surtaxes and tariffs up to 25 percent at times, and shipment volumes fell as tariffs rose and some consumers avoided U.S. brands. Unexpected duties and GST additions commonly surprise Canadian buyers at delivery.

Read at Practical Ecommerce