You find the perfect gift online. The price looks great, you check out, and a week later the delivery driver asks for another payment before handing over your package. If you've ever ordered from a store outside Canada, there's a good chance this has happened to you. Here's a plain-language look at the extra costs that can come with cross-border orders, so you can compare prices with your eyes open.
1. Duties and import taxes
When a package enters Canada, the Canada Border Services Agency (CBSA) may charge duties and taxes based on the value of the goods. According to the CBSA, the thresholds currently look like this (in Canadian dollars):
- Courier shipments from the US or Mexico: up to $40 is free of duty and tax; from $40 to $150 you pay taxes but no duty; over $150, duty and taxes may both apply.
- Courier shipments from other countries: only up to $20 is free of duty and tax.
- Postal shipments from any country: only up to $20 is free of duty and tax.
That means a $60 order from overseas will usually be taxed, and a $200 order from the US can face both duty and tax.
2. The 2026 surtax on many US-made goods
Since 8 September 2026, Canada has applied a surtax of 15%, 25% or 50% to a list of US-made goods, including some clothing, appliances, electronics, kitchenware and personal care items. Customs specialists note that this surtax can apply even to low-value online orders that would otherwise fall under the duty-free thresholds above. Whether a product is affected depends on the specific item and where it was made, so it's worth checking before you buy. We explain more in Does Shopping Canadian Save You Money?
3. Courier brokerage fees
Someone has to clear your package through customs, and when a courier does it, they often charge a brokerage or clearance fee. These fees are set by each courier, not the government, and they can come as a surprise because they're billed on delivery. Canada Post also charges a handling fee on items that owe duty or tax.
4. Currency conversion and card fees
When a store charges in US dollars or another currency, your bank converts it to Canadian dollars. Most Canadian credit cards also add a foreign transaction fee, typically around 2.5%. On a $200 order, that's about $5 gone before anything ships.
5. Expensive or impossible returns
Sending something back across the border can cost more than the item is worth, and you may not get the duties or fees refunded. Many shoppers end up keeping things they don't love because returning them isn't worth it.
6. Longer shipping and customs delays
Cross-border packages can sit in customs, especially during the holidays. If you're shopping for Christmas, a delay can mean a gift arrives after the big day.
Putting it together: an example
Imagine you order a $100 sweater from a US website, and it happens to be on the surtax list at 25%. Here's how the true cost could add up for someone in Ontario:
- Sweater: $100
- Surtax at 25%: $25
- HST at 13%, charged on the value plus surtax: $16.25
- Card foreign transaction fee at about 2.5%: $2.50
- Plus any courier brokerage fee and shipping
A $100 sweater can easily become $145 or more. This is only an illustration, since every product and order is different, but it shows how quickly the extras add up.
How to avoid the surprises
- Look for the total landed cost. Check whether duties, taxes and fees are included at checkout or will be billed at your door.
- Shop from stores that ship from inside Canada. Your package never crosses the border, so there's nothing to clear at customs.
- Pay in Canadian dollars to avoid conversion and card fees.
- Read the return policy first, especially for clothing and gifts.
- Order early in the holiday season to leave room for delays.
How True North Treasures helps
Every order at True North Treasures ships from suppliers inside Canada and is priced in Canadian dollars. What you see at checkout is what you pay: your items, shipping and your provincial sales tax, with nothing extra at the door. Shipping is calculated at checkout. Learn more about shopping with no duties.
This article is general information, not legal or tax advice. Rules and thresholds can change, so check the CBSA website for the latest details.