Cross-border ecommerce between america and Canada has hardly ever been extra unsure than in 2025. Nonetheless, for U.S. retailers, Canada stays a simple first step into worldwide gross sales.
Canadian consumers purchase closely from U.S. websites. However this 12 months’s vacation purchasing season is testing even skilled sellers. Tariffs, a postal strike, and shifting taxes have turned what must be a easy northern route right into a logistical puzzle.
Tariff Mud-Up
Many pundits have described latest commerce relations as a battle. Helaine Wealthy, the vp of strategic gross sales and administration at ePost International, a world transport supplier, was extra tactful.
“The present administration actually took a take a look at what nations are asking [American businesses] to pay once we’re transport into their nations and what they’re charging as a premium on U.S. items,” mentioned Wealthy.
The consequence was a tariff for america that upset North-South relations. The back-and-forth commerce negotiations included on-again, off-again reciprocal tariffs and surtaxes from the Canadian authorities — in some instances, as much as 25%.
At peaks within the U.S.-Canada dispute, ecommerce “cargo volumes dropped shortly as tariffs rose and a few Canadian customers started avoiding U.S. manufacturers,” Wealthy mentioned.
But duties existed lengthy earlier than the latest dust-up.
Canadian Duties
“Nothing is extra irritating than pondering you paid for a product after which getting shocked on the door that it’s a must to pay this, that, and the opposite responsibility,” mentioned Wealthy.
Sadly, it is a frequent prevalence for Canadian consumers shopping for from American ecommerce shops. Listed here are just a few examples of what Canada usually provides.
- Duties. Based mostly on the kind of items, their origin (together with whether or not they qualify below america–Mexico–Canada free-trade settlement or different treaties), and classification (harmonized system code).
- GST. The Canadian items and providers tax applies to most imported items, calculated on the Canadian-dollar worth of products plus duties.
- PST or HST. Relying on the vacation spot province, the importer or client may owe provincial gross sales tax (PST) or harmonized gross sales tax (HST), combining federal and provincial elements.
Postal Strike
The ultimate problem, past a risky commerce setting and duties due, is getting a package deal delivered in Canada.
Wealthy famous that the Canadian Union of Postal Staff is once more holding strikes in the course of the vacation season, delaying most vacation shipments, because it did final 12 months.
Canada Put up is the nation’s major last-mile supply service. Thus sending shipments through the U.S. Postal Service or some other service that companions with Canada Put up is a threat.
As an illustration, Walmart Market doesn’t enable Canada Put up or any affiliated providers. Sellers who attempt to circumvent Walmart’s restriction face suspension.
Alternative Nonetheless
Regardless of tariffs, taxes, and strikes, Canada stays a major development marketplace for U.S. ecommerce retailers.
Relying on the projection, whole Canadian ecommerce gross sales will vary from $40 billion USD to $43 billion in 2025. About 20% of these gross sales will go to American shops, making the Canadian market value round $8 billion for the 12 months. (In distinction, 2024 U.S. retail ecommerce gross sales had been roughly $1.2 trillion.)
Canada provides U.S. retailers geographic proximity, acquainted client habits, and lesser competitors. Plus, practically all customers converse English.
If a U.S.-based on-line retailer needs to develop internationally, Canada is a superb place to start out.
Promoting to Canada
Success requires researching three components: price competitiveness, duty-paid pricing, and service contingencies.
Price
Earlier than advertising and marketing to Canadian consumers, retailers ought to mannequin the whole landed price — product, transport, duties, and GST/HST — to make sure every sale is worthwhile, in keeping with Wealthy at ePost International.
This step contains figuring out and understanding tariffs or product restrictions. Canada forbids the import of some merchandise offered domestically in america.
Backside line: Can a U.S. enterprise competitively promote its merchandise into Canada?
Responsibility-paid pricing
Responsibility-paid pricing is akin to free transport.
Delivery charges create friction, prompting consumers to desert orders if too costly. Ditto for import duties.
Free transport provides take away that friction.
The equation is just like “supply responsibility paid.” If paying Canadian duties for patrons will increase gross sales quantity sufficient to offset the price and generate extra revenue, do it.
Carriers
Lastly, no service is an efficient alternative when it’s experiencing a strike. Shipments will nearly actually encounter delays.
Have a contingency plan that makes use of carriers not impacted by the present Canadian strikes.
