New trade deal with US gives Canadians $150 duty-free limit for online purchases

Oct 1 2018, 7:51 pm

The new trade agreement between Canada, Mexico, and the United States is bringing some good news for Canadian online shoppers.

The USMCA (formerly known as NAFTA) increases Canada’s duty-free amount from $20 to $150.

This means that Canadians shopping for US goods online will not have to pay duty on purchases that are $150 or less.


USMCA deal duty-free

The USMCA agreement highlights that the duty-free change applies to purchases made by “information technology that expedites the procedures for the release of goods.”

This means that it is not applicable to shoppers who physically travel to the US and make cross-border purchases.

Canadian shoppers who stay in the US for 24 hours receive duty-free exemption on $200. That increases to $800 for those who stay in the US for over 48 hours.

The USMCA deal was officially reached on September 29.

According to a joint statement between the nations, “USMCA will give our workers, farmers, ranchers and businesses a high-standard trade agreement that will result in freer markets, fairer trade and robust economic growth in our region. It will strengthen the middle class, and create good, well-paying jobs and new opportunities for the nearly half billion people who call North America home.”

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