Guide for Canadian shops · checked 10 October 2026
US import duty for Canadian Etsy sellers
Canada has the most complicated US duty rules of any country right now. Depending on what you make and where its materials came from, a US order can pay nothing, 10% extra, or 50% extra. Here's how to tell which applies to you.
What changed
- 29 August 2025: the US ended duty-free entry for parcels under $800, so every US order is now a formal import.
- 9 July 2026: Etsy started requiring non-US shops to prepay US duty through the label or carrier (delivered duty paid).
- 24 July 2026: a 10% Section 301 tariff on Canadian goods took effect. Goods that qualify under CUSMA (the Canada–US–Mexico agreement) are exempt.
- 22 August 2026: a 50% Section 338 tariff started on a list of about 550 tariff lines of Canadian goods. CUSMA does not exempt these.
The three cases
- Usually 0%: made in Canada, qualifies under CUSMA, and not on the Section 338 list.
- Normal US rate + 10%: doesn't qualify under CUSMA, or you can't claim it on the shipment.
- + 50%: on the Section 338 list. That's on top of the normal rate (0% with CUSMA), plus another 10% without CUSMA.
Does my item qualify under CUSMA?
Roughly, an item qualifies if it's wholly made in Canada, the US or Mexico, or if materials from elsewhere were changed enough in your workshop to meet the product's "rule of origin". A mug you threw from clay bought in North America almost always qualifies. A bracelet strung from beads imported from China and sold as-is may not. The rule depends on the product's tariff code, so check it with the CBSA's CUSMA guidance (search "CUSMA rules of origin" on cbsa-asfc.gc.ca) or a customs broker if you're unsure.
Qualifying isn't enough on its own: the claim has to reach US customs with the shipment. Ask your label provider (Canada Post, Chit Chats, Stallion, UPS or another DDP service) how to mark CUSMA on your US labels. If you can't claim it, price as if the 10% applies.
Which goods face the 50% tariff?
The Section 338 list covers about $20 billion of goods across three groups: alcohol, dairy, and a long "motor vehicle" annex that reaches well beyond cars. Law firm and trade summaries name furniture, plywood, clothing and textiles, hockey equipment, maple syrup and dairy, and some also list jewellery, cosmetics, toys and stationery. The list is set by 8-digit tariff code, so the only safe check is to look up your exact code in the annexes or ask a broker. Goods hit by the US steel, aluminium or auto (Section 232) tariffs follow their own rules.
Worked examples
These assume Etsy's 6.5% transaction fee plus about 3% Canadian payment processing and a C$2 duty-handling charge on the label. The new US price keeps your take-home the same as a Canadian sale.
| Listing (C$) | Duty | New US price |
|---|---|---|
| Stoneware mug, C$30, CUSMA claimed | 0% | C$32.21 |
| Same mug, no CUSMA claim | 19.8% | C$41.24 |
| Cotton T-shirt on the Section 338 list, C$35, CUSMA claimed | 50% | C$83.15 |
The CUSMA claim alone is worth about C$9 on a C$30 mug. For goods on the 50% list, the honest answer may be to stop selling them to the US until the tariff changes, or to ship stock to a US fulfilment partner in bulk.
Common questions
Do digital downloads pay duty? No. Nothing crosses the border.
I make art prints and stickers. Am I affected? Printed paper usually has a 0% normal rate, so with CUSMA it's typically duty-free. Without a CUSMA claim it's 10%.
Will this change again? Canada–US talks are ongoing and the Section 338 list has been changed once already. Recheck before you reprice.
In the free checker, choose Canada, CUSMA claimed under "Made in" for goods that qualify, or plain Canada if you can't claim it.
Sources: PwC Canada on the Section 301 tariff, Davis Wright Tremaine on Section 338, Zonos Section 338 guide. Read 10 October 2026.