The United States and Canada—two close allies, trading partners, and neighbors—are both entering a new economic chapter as the removal of the de minimis exemption reshapes the flow of global goods, particularly in the e-commerce and small business sector.
While U.S. policymakers like current President Donald Trump may view this move as a strategic way to restore American manufacturing and reduce trade imbalances, the consequences—both intended and unintended—are just beginning to unfold.
As Christian businesspeople, we are called to balance wisdom and stewardship, to seek fairness, and to discern the long-term impact of government policy, especially when it affects the most vulnerable in the supply chain.
What Is the De Minimis Exemption?
The de minimis exemption allowed goods imported into the United States valued under $800 to enter without duties or taxes. This streamlined system fueled global e-commerce, reduced paperwork, and made it affordable for small and medium-sized businesses (SMBs) to reach American consumers—often using postal services like USPS and Canada Post.
With its removal, any imported item, regardless of value, is now subject to:
- Additional taxes
- Customs documentation
- Longer shipping times
- Higher handling fees
The USPS and Canada Post: Two Systems, Both in Trouble
Canada Post has long had the ability to pass increasing labor and operational costs on to consumers, giving it more flexibility than the United States Postal Service (USPS). However, this flexibility has become a burden in today’s inflationary and regulatory environment. With Canada’s private sector under pressure and consumers increasingly price-sensitive, Canada Post faces a shrinking customer base and rising costs it cannot pass on forever.
In contrast, USPS, despite its mounting losses, operates within the constraints of unionized labor agreements and federal restrictions. While its deficits have historically been covered through borrowing—often indirectly through the Federal Reserve—it now faces a new challenge: a steep decline in international parcel volume, especially low-cost shipments that were previously exempt under the de minimis rule.
The Risk to Small Business and Innovation
Before the de minimis changes, small entrepreneurs, dropshippers, and ecommerce sellers—many of whom sold products manufactured abroad—could scale their businesses with minimal overhead. Goods from China or other manufacturing hubs were automatically processed, and logistics were largely automated.
Many sellers even operated at a temporary loss, building customer bases and inflating business valuations with the hope of securing future investment or flipping businesses into long-term income streams. It was risky—but it was entrepreneurship in action.
Now, every item must clear customs, forms must be filled, and processes once handled by automation now require manual oversight or paid third-party services. For businesses earning a $20 profit per item, the added costs, time, and paperwork make the model unviable.
Big Business Wins, the Little Guy Loses
Large corporations like Amazon and Walmart are well-positioned to absorb the additional cost of compliance or negotiate special terms. In fact, this regulatory change gives them the opportunity to wipe out smaller, more agile competitors, dominate new segments, and gradually raise prices once alternatives disappear.
Yes, prices will rise—and not just for imported goods. Domestic businesses that relied on the de minimis exemption to access affordable parts, packaging, or accessories are now forced to pay more or source locally at higher costs.
This is how barriers to entry are raised—not through legislation that bans small business, but through policies that quietly make it impossible to compete.
A Complicated Future: Jobs, Taxes, and Innovation
Some would argue that Trump’s removal of the de minimis exemption is a step toward onshoring jobs and revitalizing American industry. In theory, that may be true. However, as long as price control mechanisms like the federal minimum wage remain in place, the cost of doing business in the U.S. stays high, and the job creation incentive is weakened.
We may see new entrepreneurs set up warehouses in the U.S. to avoid these tariffs, which could drive local innovation. But in the short term, we’ll likely see:
- More regulatory lobbying
- Increased requests for exemptions
- Customs backlogs
- Shipping delays
This transition period will be especially difficult for smaller players, while government agencies like USPS struggle to adapt. And make no mistake: the USPS could lose a significant revenue stream it once earned from international mail flows—revenue that private couriers like FedEx and UPS are now positioned to claim.
Private couriers, though not perfect, are built for service. USPS, with its unionized workforce and bureaucratic inertia, may not be able to respond quickly—or effectively.
Canada’s Shrinking Private Sector Faces Another Blow
While this is a U.S.-driven policy, its effects spill over to Canada. Canadian dropshippers and small businesses used to benefit from a favorable exchange rate, selling into the U.S. market and profiting from the weaker Canadian dollar. Those days may be over.
Few will see value in keeping operations based in Canada when setting up a warehouse across the border eliminates the hassle. Worse, Canada’s regulatory climate—especially its aggressive Net Zero agenda—makes local entrepreneurship less attractive with each passing year.
In short, this could be another nail in the coffin for Canada’s fragile private sector.
The Christian Business Perspective
As followers of Christ in business, we are reminded that no law or economic policy escapes God’s sovereign plan. We’re called to be wise stewards, to love our neighbors, and to create value—not just for ourselves, but for the communities we serve.
Jesus teaches us to count the cost before building (Luke 14:28), and that principle applies here. Leaders and policymakers must consider long-term consequences, not just political wins. In our zeal to “protect domestic industry,” we must not trample the entrepreneur, the consumer, or the foreign family trying to build a better life through small-scale trade.
“A false balance is abomination to the Lord: but a just weight is his delight.”
— Proverbs 11:1
Economic justice, fairness in trade, and access to opportunity are Christian principles just as much as they are market ideals.
Conclusion: Prepare for Higher Prices—and a Shifting Marketplace
The removal of the de minimis exemption may align with Trump’s America First goals, but the side effects are clear:
- Higher prices for consumers
- Fewer options for small businesses
- Strain on USPS
- An uneven playing field that favors corporate giants
For Canada, the consequences may be even more severe. For entrepreneurs across both nations, the path forward now involves greater compliance, higher risk, and more dependence on logistics infrastructure that may or may not serve them well.
But let us not despair.
A Final Encouragement
Jesus Christ is Lord over all—including economics. He provides clarity where there is confusion, peace where there is pressure, and purpose when our work feels uncertain.
If you haven’t yet, consider making Jesus Christ your Lord and Savior today. Through Him, all things are possible — including building a business that honors God, serves others, and thrives even in uncertain times.
“Trust in the Lord with all your heart, and lean not on your own understanding.”
— Proverbs 3:5
