Canadian small businesses are worried about the future of their sales in the United States after US President Donald Trump repealed the de minimis exemption.

The exemption previously allowed packages valued at less than $800 to enter the country duty-free, making it easier for small Canadian companies to export. Now, with the exemption removed, many entrepreneurs are facing serious challenges.

“About a third of our members used this exemption to ship goods to American customers. This rule was a significant source of revenue for many small businesses, and removing it will put a huge strain on them,” Corinne Pullman, executive vice president of the Canadian Federation of Independent Business, told CTV.

One alternative is to use the Canada-United States-Mexico Free Trade Agreement (CUSMA), which allows duty-free exports for goods made in the three countries. But getting a CUSMA certificate of compliance for each product is a cumbersome and bureaucratic process, and it will be complicated for many small businesses to implement, Pullman said.

Some companies are also trying to replace domestic or international markets, but transportation costs and logistical challenges make this difficult. In many cases, the majority of their customers are in the United States, and replacing such a market is not easy.

Still, some companies have taken steps to adapt to the new situation, from completing compliance documents to negotiating with customers to manage increased costs. Pullman stressed that the order could still be changed or revoked, but businesses should be prepared for the current situation:
“There is always hope, but it is not known whether this decision is temporary or permanent. "What matters now is adapting to the new reality."

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