Posted on

NEW: USA Section 338 Tariffs: customs duties & shipments into the USA.

February 20, 2026. The Supreme Court in a 6-3 decision have struck down the tariffs. Zonos, the brokerage firm used by Canada Post, dropped me an email informing me of of incoming update in what this all means.

Since then there’s been various tariff forms, but the newest Section 338 is set to come into effect August 19, 2026 will see a 50% tariff on items regardless whether covered by USMCA or not. Seeds are included. This is 50% on top of all the other duties, fees and taxes.

I understand Section 338 has never been enforced so this is new territory for the US Court of International Trade. How long it will take for a CIT ruling is unknown, but we all know its going to be bumped up to the slug paced Supreme Court.

Below is our original post and the rationale behind disabling our US shipping module.

We have disabled the shipping module to the USA. Why? Starting August 29, 2025, every package shipped from Canada to the U.S. must show proof that import taxes (tariff) and duties have been prepaid before the shipment can be accepted for delivery. This is for all products regardless the country of origin (even those solely populated by penguins), but for Canada, the tariff rate is 35%. It doesn’t end there. Canada Post has teamed up with Zonos, a brokerage firm to handle the tariff fees. They demand a $3.99/ broker transaction plus 10% of the order’s value. That makes an actual cost increase of 45% for all US orders not including the customs fee.

Though deemed illegal by a federal court, it is now slated to be presented to the Supreme Court on November 5, 2025. Your guess on their ruling and when they will rule is as good as mine. So until then, we shall keep our powder dry. BUT if you desperately need something, contact us.

Even the US’s duty-free “de minimis” threshold of US$800 is suspended.