UPS hosted a webinar, “Navigate the New Norms: Essential insights on U.S. Trade and Tariff Changes for Cross-Border Shipping”, in August, outlining recent U.S. trade and tariff policy updates affecting cross-border shipping. These changes highlight the need for businesses to adapt their compliance and cost management strategies to stay competitive in the global marketplace.

Takeaways:  Businesses should think of compliance as a strategic lever, not just a cost center. It’s time to shift from a checklist to a chessboard, thinking several moves ahead.

End of de minimis: The U.S. has eliminated its “de minimis” exemption, which allowed goods valued under $800 USD to enter the U.S. duty free. U.S. consumers will now pay duties on every shipment, regardless of value. This change will significantly affect e-commerce businesses that depended on the exemption to ship orders at a lower cost.

Compliance costs rising: As U.S. Customs strengthens its enforcement efforts, Canadian exporters should maintain clear documentation of product origins. Failure to accurately declare this information may result in penalties for importers.

CUSMA still matters: While CUSMA provides duty-free access for many goods, only products that meet the rules of origin and have updated certificates will qualify.

Consider operational strategies: Businesses can mitigate potential costs and delays by consolidating shipments, using digital tools to streamline the compliance process, and providing transparent checkout pricing for customers with duties upfront.

For more details on tariff updates and how businesses can adjust, visit the UPS website.