Tax & Trade Blog

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US NO LONGER RAISING TARIFFS ON WOOD PRODUCTS

DUTIES ON LUMBER & WOOD CABINETS/VANITIES WERE TO DOUBLE - BUT NOT ANYMORE!

A recent last-minute announcement by the United States (US) government that it will NOT proceed with increasing certain tariffs is just the latest demonstration of how fluid and uncertain the US tariff situation is.  Happily, it provides some relief to Canadian exporters of kitchen cabinets, bathroom vanities, and other wood products.  It may imply more good news is to follow, but it certainly shows how hectic the tariff situation is for Canadian exporters to the US.

Further detail below.

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US SUSPENDS DE MINIMIS DUTY-FREE TREATMENT

IMPORTS TO US NO LONGER BENEFIT FROM $800 DUTY-FREE LIMIT

Effective 12:01 a.m. (ET) on August 29, 2025, the United States (“US”) suspended the de minimis shipment exemption for goods imported from Canada, Mexico, and all other countries, marking a significant shift in cross-border trade rules.  The move, announced in a July 30, 2025 Executive Order by President Donald Trump, accelerates a policy change which had been expected in 2027.

This development will impact Canadian exporters who have relied on de minimis duty-free treatment to ship low-value goods to US consumers.  It will also impose new compliance obligations on carriers and exporters.