Why a tariff on China can change what a parcel from the US costs

Short answer: because tariffs follow where a product was made, not where it ships from. A phone case made in China and sold by a US store to a Canadian customer can carry Canada's tariffs on Chinese goods. A Chinese product sent from Canada into the US carries the US tariffs on China.

Ship from is not made in

Customs looks at the country of origin. A US warehouse, a Canadian print shop or a reseller in between does not change it, unless the product was really transformed there. That is why the same product can owe very different amounts depending on where it came from, even from the same store.

Into the US: the tariffs on Chinese goods

• Section 301, the US tariffs on Chinese goods: tariffs of 7.5% to 25% on long lists of Chinese goods since 2018, and 50% or 100% on some products since 2024.
• Section 232, the US national security tariffs: tariffs on metals, wood, cars and their parts, for most countries, China included.

A Chinese made product sent from Canada to a US customer can owe the ordinary duty plus both, from the first dollar, since the US no longer lets small parcels in duty free.

Into Canada: the extra tariffs on Chinese goods

• The China Surtax Order (2024): 25% on 182 kinds of steel and aluminum products made in China. Its 100% surtax on Chinese electric vehicles was repealed on March 1, 2026.
• The surtax on steel products: on some goods made from steel, from every country except Canada.

A courier parcel from the US worth C$150 or less owes no duty, and some surtaxes spare goods a person buys for their own use. They apply to larger and business shipments.

What a store can do

1. Know where each product is made, especially accessories, electronics and anything metal.
2. Price the two directions separately. A product that is cheap to send into Canada can be costly to send into the US, and the other way round.
3. Consider a North American made alternative for your best sellers, if the numbers justify it.
4. Watch the lists. Our guide to US tariff types explains each one, and free tariff alerts tell you when one touching your product changes.

Check your own numbers

• One parcel: the free border fee checker.
• Your store's last 90 days: the free border cost audit.
• Every order, before it ships: Othermile checks each one against your limits and holds the costly ones for your OK.

These are estimates from the official rules, not customs advice.

This guide explains public rules in plain language for general information. It is not customs, tax or legal advice; the exact tariff code, your paperwork and the carrier decide the final amount.