Trade War Fallout: The Unfair Advantage of Select Couriers

As Canada retaliates in the ongoing trade war, many businesses are asking:

“Will my shipments be hit with an extra 25% surtax?”

The good news? If you’re using certain couriers, your goods may be exempt.

Unlike the broad-based U.S. approach, which targets any product of Canadian origin, Canada’s response is tariff classification-specific. However, there’s a major loophole.

Years ago, due to strong lobbying from select couriers, Canada eliminated the need for detailed tariff classification on their shipments. Instead, these couriers use three simplified classification “buckets”—which conveniently fall outside of the retaliation measures.

The result?

? Couriers using these “buckets” avoid the 25% surtax

? These shipments are virtually untraceable

? Only a handful of couriers can benefit—no new entrants have been allowed in over a decade

What does this mean for Canadian businesses?

? While businesses importing from the U.S. must pay the surtax, Canadian consumers using these couriers can import the same goods without it.

? Trade organizations, including the Canadian Society of Customs Brokers, remain concerned that such a moratorium on new entrants still exists—effectively limiting fair & equitable competition within trade facilitation.

As the trade war escalates, businesses may find themselves at a disadvantage—paying tariffs that individual consumers can easily sidestep.

Do trade statistics and fair taxation treatment even matter? Or should tariff classification be as simple as 3 choices Door #1, Door #2 or Door #3?

Fair / unfair / don't care?