Canadian Finance Minister Francois-Philippe Champagne holds a press conference during the G7 finance ministers and central bank governors meeting in Banff, May 20, 2025.Todd Korol/Reuters
The G7 has begun discussing low-cost shipments coming from China, Finance Minister Francois-Philippe Champagne said as the U.S. cracks down on online retailers and the European Union looks at imposing a fee on small packages.
Mr. Champagne kicked off the G7 meeting of finance ministers and central bankers in Banff, Alta. on Tuesday with a news conference alongside his Ukrainian counterpart.
Mr. Champagne was asked whether Canada wants to impose tariffs on low-cost imports from China, such as orders from online retailers like Shein and Temu, and whether officials will discuss that issue this week.
“This is something that we have started to discuss, I would say, as (a) G7, in terms of low value shipments that have come in our respective countries. It creates a number of issues, as you would expect, some around control at the border,” he said.
How U.S. duties targeted at China are disrupting Canadian businesses
The European Union proposed earlier on Tuesday imposing a flat fee of two euros on small packages coming into the trading block, mostly from China, that are delivered directly to consumers. A lower fee of 0.5 euros would be imposed on packages sent to warehouses.
U.S. President Donald Trump has taken aim at Chinese online retailers in recent months by eliminating the de minimis exemption that had allowed packages worth less than US$800 to enter the United States duty free.
Mr. Trump then imposed a 120 per cent tariff on these low-cost shipments, but later lowered it to 54 per cent as part of 90-day trade truce with China.
Canada has a much smaller de minimis exemption. Packages from the U.S. and Mexico with a value of less than $40 are exempt from applicable duties and taxes. For other countries, the exemption is only for packages worth less than $20.
Mr. Champagne said he and his counterparts will be looking at how to move the conversation forward, noting that it isn’t about raising revenues, but rather protecting their jurisdictions and ensuring packages aren’t used for smuggling.