If your business ships across the U.S. border, you’ve probably already heard the news: the U.S. government has eliminated the de minimis rule.
Until now, goods under $800 USD could enter duty-free with little paperwork. That made cross-border trade faster, cheaper, and simpler for many of our clients.
As of August 29, 2025, that’s no longer the case. Every package entering the U.S., no matter its value, now requires customs processing and duties.
For Canadian exporters, the impact is immediate. For U.S. businesses importing from abroad, the change is just as real. Either way, it means higher costs, more paperwork, and slower delivery times if you don’t have the right systems in place.
At Red River Freight, we know how disruptive this feels. Let’s break down what’s changed, what it means for your business, and how we can help you keep goods moving.
What Was the De Minimis Rule?
The de minimis rule allowed goods under $800 USD to cross into the U.S. without duties and with minimal customs paperwork. It was designed to simplify low-value shipments – and for many businesses, it was a cornerstone of cross-border ecommerce.
For Canadian companies in particular, de minimis made serving U.S. customers much more affordable. It helped keep landed costs down, sped up deliveries, and made cross-border trade more accessible to small and midsize businesses.
What’s Changed?
The removal of the de minimis rule means:
- All goods now require customs processing
- Duties and taxes apply to every shipment, even small parcels.
- Expect longer processing times at the border as every package must be cleared.
For Canadian exporters, this adds both cost and complexity to accessing the U.S. market – which accounted for nearly $435 billion in exports in 2024. For U.S. businesses importing from overseas, it means higher landed costs and tighter margins.
What This Means for Your Business
Whether you’re a Canadian manufacturer shipping south or a U.S. retailer sourcing globally, the change has real consequences:
- Higher landed costs – Duties on every shipment will raise expenses.
- Slower delivery times – More customs checks can cause delays.
- More administration – Increased paperwork and compliance demands.
- Tighter margins – Small increases in cost can make a big difference for ecommerce businesses.
For many Canadian ecommerce brands, this shift is especially difficult. If you’re selling lower-value goods – say $10–$20 items – shipping each order directly into the U.S. no longer makes sense. Customs broker fees on individual packages could now exceed the profit you make per sale.
How Red River Freight Helps You Adapt
This change adds complexity, but it doesn’t have to stop your business from growing. With the right partner, you can minimize disruption and keep freight flowing smoothly.
Here’s how we’re helping our clients:
- Consolidate Inventory and Save on Broker Fees
Instead of clearing every $20 package at the border, we help clients move inventory in bulk. You ship pallets to our Pembina, ND warehouse, pay a single broker entry fee, and avoid broker costs on every single order. Once stock is in the U.S., we handle order fulfillment and ship directly to your customers anywhere in the country. - Lower Duties With Smarter Declarations
Here’s another big advantage: when you fulfill across the border, duties are applied to the sale price of each item. But when you transfer unsold inventory in bulk, duties are based on your cost of goods. That means lower duties on the same items – and real savings over time. - Fulfillment Built for Flexibility
From small parcels to pallet loads, our team scales with your demand. Orders are picked, packed, and shipped from our U.S. warehouse, so you can offer competitive delivery times without the stress of cross-border clearance on every sale. - Customs Support You Can Rely On
We work directly with brokers to make sure paperwork and duties are handled correctly the first time, reducing costly errors and keeping goods moving.
The Bottom Line
The end of de minimis has reshaped how cross-border trade works, especially for Canadian ecommerce brands. Shipping individual low-value items across the border is no longer sustainable, but with the right 3PL strategy, you can keep selling profitably.
At Red River Freight, we’re already helping businesses make the shift: bulk inventory transfers, smarter duty management, and fast U.S. fulfillment that protects your margins.
If you’re looking for answers on how this impacts your business, call us. You’ll get a real person on the line – someone who understands cross-border logistics and can walk you through the best path forward. Contact us to get started.
