Canadian Shippers Struggle With Domestic, International Delays, Disruptions & Tariff Confusion
Sellers in Canada are dealing with a double whammy of delays and disruption as labor disputes and tariff confusion impact both domestic and international shipping services.
Domestically, Canada Minister of Jobs and Families Patty Hajdu has ordered the Canadian Union of Postal Workers to vote on the carrier’s most recent contract offers in effort to break the long-running negotiations stalemate but delays may still be occurring due to ongoing overtime ban.
Liz Morton
DHL Express Canada is also dealing with labor issues, suspending incoming international imports into the country temporarily amidst stalled contract negotiations with unionized workers
Philip Neuffer
Meanwhile Canada-based sellers trying to ship items to the US are experiencing massive problems with package either being turned away at the border or refused by buyers and returned to sender as tariff confusion continues.
Popular shipping platform Chit Chats has announced they are temporarily suspending Tracked Packet USA and Expedited Parcel USA with shipments originating from China, Hong Kong and Macau on Monday, June 23, 2025 at 11 AM EST for Ontario clients as they work with Canada Post to resolve ongoing issues which have resulted in many packages being rejected by Customs and Border Patrol and returned to sender.
Grisel Bennett
With the recent changes at the U.S. border, we’re seeing some inconsistencies in how U.S. Customs and Border Protection (CBP) is handling Canada Post-based U.S. shipments, specifically Tracked Packet USA and Expedited Parcel USA services.
What is happening?
When these shipments are handed off to Canada Post in Ontario, they’re typically forwarded to the Chicago International Service Center (ISC)—a major facility that processes international mail entering the U.S. Recently, this center has begun refusing shipments it flags as originating from China.The reason being there is ongoing confusion over who is responsible for collecting tariff fees—Canada Post or USPS.
Rather than USPS rejecting the shipments, it’s CBP operating out of the Chicago USPS ISC. We have reached out to both Canada Post and USPS for an explanation, and it is currently being investigated. In addition, it has been noted by both postal entities that this is happening province wide, and we are actively working with both organizations to get more information.
And UPS is reportedly billing senders for uncollected tariffs when packages are refused by their recipients, with several recent posts in the eBay Canada community forum detailing the unexpected charges sellers are facing.
Customs Fees charged by UPS to Buyer Upon Delivery
Sold an item for $25.00 US plus $19.99 shipping to a person in California. No communication from Buyer whatsoever. UPS was not able to deliver because Buyer Refused delivery.
UPS claims that there was $53.00 US Customs owing to Buyer at the door. UPS called and asked me to pay it! In order for me to receive the item, I have to pay the $53.00 US. Anyone else experience this? This is June 2025. Thank you.
yup! Sold an item for $550US Duty and brokerage somewhere around $450US. Am now told I have to pay the 450 + 38 for return shipping. Thats $488. to have the item returned. Oh by the way if I do not want product back I still have to pay the $488. At least ebay didnt give the buyer a refund. Thus I get 550 from Buyer and pay US government $488. Boy was that ever fun. Item not yet returned, but hopefully soon.
If you're a Canada-based ecommerce seller facing shipping domestic and/or international shipping issues, we'd love to hear about your experiences - leave a comment below or contact VAR!
