{"id":1557934,"date":"2025-11-13T08:58:44","date_gmt":"2025-11-13T13:58:44","guid":{"rendered":"https:\/\/www.practicalecommerce.com\/?p=1557934"},"modified":"2025-11-13T10:48:35","modified_gmt":"2025-11-13T15:48:35","slug":"canada-still-works-for-u-s-sellers","status":"publish","type":"post","link":"https:\/\/www.practicalecommerce.com\/canada-still-works-for-u-s-sellers","title":{"rendered":"Canada Still Works for U.S. Sellers"},"content":{"rendered":"<p>Cross-border ecommerce between the United States and Canada has rarely been more uncertain than in 2025. Nonetheless, for U.S. merchants, Canada remains an easy first step into international sales.<\/p>\n<p>Canadian shoppers <a href=\"https:\/\/www.practicalecommerce.com\/ecommerce-investor-on-turnaround-tactics\">buy heavily<\/a> from U.S. sites. But this year&#8217;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.<\/p>\n<h3>Tariff Dust-Up<\/h3>\n<p>Many pundits have described recent trade relations as a war. Helaine Rich, the vice president of strategic sales and administration at ePost Global, an international shipping provider, was more tactful.<\/p>\n<p>&#8220;The current administration really took a look at what countries are asking [American businesses] to pay when we&#8217;re shipping into their countries and what they&#8217;re charging as a premium on U.S. goods,&#8221; said Rich.<\/p>\n<p>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 \u2014 in some cases, up to 25%.<\/p>\n<p>At peaks in the U.S.-Canada dispute, ecommerce &#8220;shipment volumes dropped quickly as tariffs rose and some Canadian consumers began avoiding U.S. brands,&#8221; Rich said.<\/p>\n<p>Yet duties existed long before the recent dust-up.<\/p>\n        <div class=\"backlist-wrapper\">\n            <h3 class=\"recommended\"><div class=\"icon\"><\/div> Recommended<\/h3>\n            <a href=\"https:\/\/www.practicalecommerce.com\/smarter-paths-to-global-sales?utm_source=back\" >\n                <div class=\"backlist-content\" >\n                    <div href=\"\" class=\"thumb-link\">\n                                                    <img decoding=\"async\" src=\"https:\/\/www.practicalecommerce.com\/wp-content\/uploads\/2025\/08\/ECC-Alex-Yancher.jpg\" alt=\"Smarter Paths to Global Sales\" loading=\"lazy\" \/>\n                                            <\/div>\n                    <div class=\"backlist-detail\">\n                                                <h4>Smarter Paths to Global Sales<\/h4>\n                                                    <p class=\"backlist-date\">August 29, 2025<\/p>\n                                            <\/div>\n                <\/div>\n            <\/a>\n        <\/div>\n        \n<h3>Canadian Duties<\/h3>\n<p>&#8220;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,&#8221; said Rich.<\/p>\n<p>Unfortunately, this is a common occurrence for Canadian shoppers buying from American ecommerce stores. Here are a few examples of what Canada typically adds.<\/p>\n<ul>\n<li><strong>Duties.<\/strong> Based on the type of goods, their origin (including whether they qualify under the United States\u2013Mexico\u2013Canada free-trade agreement or other treaties), and classification (harmonized system code).<\/li>\n<\/ul>\n<ul>\n<li><strong>GST.<\/strong> The Canadian goods and services tax applies to most imported goods, calculated on the Canadian-dollar value of goods plus duties.<\/li>\n<\/ul>\n<ul>\n<li><strong>PST or HST.<\/strong> Depending on the destination province, the importer or consumer may also owe provincial sales tax (PST) or harmonized sales tax (HST), combining federal and provincial components.<\/li>\n<\/ul>\n<h3>Postal Strike<\/h3>\n<p>The final challenge, beyond a volatile trade environment and <a href=\"https:\/\/www.practicalecommerce.com\/digital-commerce-stays-duty-free\">duties due<\/a>, is getting a package delivered in Canada.<\/p>\n<p>Rich noted that the Canadian Union of Postal Workers is again holding strikes during the holiday season, delaying most holiday shipments, as it did last year.<\/p>\n<p>Canada Post is the nation&#8217;s primary last-mile delivery service. Thus sending shipments via the <a href=\"https:\/\/www.practicalecommerce.com\/usps-rate-change-analysis-july-2025\">U.S. Postal Service<\/a> or any other carrier that partners with Canada Post is a risk.<\/p>\n<p>For instance, <a href=\"https:\/\/www.practicalecommerce.com\/fulfillment-compared-amazon-walmart-shopify\">Walmart Marketplace<\/a> does not allow Canada Post or any affiliated services. Sellers who try to circumvent Walmart&#8217;s restriction face suspension.<\/p>\n<h3>Opportunity Nonetheless<\/h3>\n<p>Despite tariffs, taxes, and strikes, Canada remains a significant growth market for U.S. ecommerce retailers.<\/p>\n<p>Depending on the projection, total Canadian ecommerce sales will range from $40 billion USD to $43 billion in 2025. About 20% of those sales will go to American stores, making the Canadian market worth around $8 billion for the year. (In contrast, 2024 U.S. retail ecommerce sales were roughly $1.2 trillion.)<\/p>\n<p>Canada offers U.S. merchants geographic proximity, familiar consumer behavior, and lesser competition. Plus, nearly all consumers speak English.<\/p>\n<p>If a U.S.-based online store wants to <a href=\"https:\/\/www.practicalecommerce.com\/alibaba-exec-on-suppliers-tariffs-ip\">expand internationally<\/a>, Canada is a great place to start.<\/p>\n<h3>Selling to Canada<\/h3>\n<p>Success requires researching three factors: cost competitiveness, duty-paid pricing, and carrier contingencies.<\/p>\n<h4>Cost<\/h4>\n<p>Before marketing to Canadian shoppers, merchants should model the total landed cost \u2014 product, shipping, duties, and GST\/HST \u2014 to ensure each sale is profitable, according to Rich at ePost Global.<\/p>\n<p>This step includes identifying and understanding tariffs or product restrictions. Canada forbids the import of some products sold domestically in the United States.<\/p>\n<p>Bottom line: Can a U.S. business competitively sell its products into Canada?<\/p>\n<h4>Duty-paid pricing<\/h4>\n<p>Duty-paid pricing is akin to free shipping.<\/p>\n<p>Shipping fees create friction, prompting shoppers to abandon orders if too expensive. Ditto for import duties.<\/p>\n<p>Free shipping offers remove that friction.<\/p>\n<p>The equation is similar to &#8220;delivery duty paid.&#8221; If paying Canadian duties for customers increases sales volume enough to offset the cost and generate more profit, do it.<\/p>\n<h4>Carriers<\/h4>\n<p>Finally, no carrier is a good choice when it is experiencing a strike. Shipments will almost certainly encounter delays.<\/p>\n<p>Have a contingency plan that uses carriers not impacted by the current Canadian strikes.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Despite tariffs, taxes, and strikes, Canada remains a growth market for U.S. ecommerce retailers.<\/p>\n","protected":false},"author":391,"featured_media":1557936,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":"","_wp_rev_ctl_limit":""},"categories":[58306],"tags":[],"class_list":["post-1557934","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cross-border",""],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.2 (Yoast SEO v25.2) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Canada Still Works for U.S. Sellers - Practical Ecommerce<\/title>\n<meta name=\"description\" content=\"Despite tariffs, taxes, and strikes, Canada remains a growth market for U.S. ecommerce retailers.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.practicalecommerce.com\/canada-still-works-for-u-s-sellers\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Canada Still Works for U.S. Sellers\" \/>\n<meta property=\"og:description\" content=\"Despite tariffs, taxes, and strikes, Canada remains a growth market for U.S. ecommerce retailers.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.practicalecommerce.com\/canada-still-works-for-u-s-sellers\" \/>\n<meta property=\"og:site_name\" content=\"Practical Ecommerce\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/practicalecommerce\" \/>\n<meta property=\"article:published_time\" content=\"2025-11-13T13:58:44+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-11-13T15:48:35+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.practicalecommerce.com\/wp-content\/uploads\/2025\/11\/111325-us-canada-featured.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"360\" \/>\n\t<meta property=\"og:image:height\" content=\"240\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Armando Roggio\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@ecommerceboy\" \/>\n<meta name=\"twitter:site\" content=\"@practicalecomm\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Armando Roggio\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/www.practicalecommerce.com\/canada-still-works-for-u-s-sellers#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.practicalecommerce.com\/canada-still-works-for-u-s-sellers\"},\"author\":{\"name\":\"Armando Roggio\",\"@id\":\"https:\/\/www.practicalecommerce.com\/#\/schema\/person\/357c476238d0b5e19bd0a0bfacefe722\"},\"headline\":\"Canada Still Works for U.S. Sellers\",\"datePublished\":\"2025-11-13T13:58:44+00:00\",\"dateModified\":\"2025-11-13T15:48:35+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.practicalecommerce.com\/canada-still-works-for-u-s-sellers\"},\"wordCount\":720,\"publisher\":{\"@id\":\"https:\/\/www.practicalecommerce.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.practicalecommerce.com\/canada-still-works-for-u-s-sellers#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.practicalecommerce.com\/wp-content\/uploads\/2025\/11\/111325-us-canada-featured.jpg\",\"articleSection\":[\"Cross-border Selling\"],\"inLanguage\":\"en-US\",\"copyrightYear\":\"2025\",\"copyrightHolder\":{\"@id\":\"https:\/\/www.practicalecommerce.com\/#organization\"}},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.practicalecommerce.com\/canada-still-works-for-u-s-sellers\",\"url\":\"https:\/\/www.practicalecommerce.com\/canada-still-works-for-u-s-sellers\",\"name\":\"Canada Still Works for U.S. Sellers - 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