The Canada Post strike and CARM deadline 2025 are set to cause serious disruption to cross-border e-commerce. With both events unfolding in May, merchants must prepare now to avoid delivery delays and customs issues when shipping to Canadian customers. While unrelated, their timing may create added complexity for international e-commerce and logistics operations:

• A potential strike at Canada Post, expected from 22 May
• The end of the financial transition period for the CBSA’s CARM system, coming into effect on 20 May

Each presents its own set of challenges, but together they may lead to disruptions—especially for businesses shipping to Canadian customers or relying on Canada Post for last-mile delivery.

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READ MORE : The Future of Export Compliance: Mobile, Seamless, and Digital

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1. Canada Post Labour Action: High Risk of Disruption

Labour negotiations between Canada Post and its workers’ union appear strained. According to industry sources and media coverage, there is a high likelihood of a strike or lockout from next week, 22 May 2025.

Such industrial action would directly affect Canada Post operations, halting the domestic distribution of parcels. Shippers relying on USPS Global Shipping Software (GSS) or other hybrid delivery models that hand off to Canada Post will likely face disruptions.

Historically, USPS has disabled GSS label printing during past Canada Post strikes to prevent volumes from backing up in the system. Although some stakeholders have requested USPS to maintain GSS access during a potential strike, no guarantees have been issued as of now.

2. CARM Transition Deadline: End of the RPP Grace Period

The Canada Border Services Agency (CBSA) is rolling out CARM (CBSA Assessment and Revenue Management), a digital platform that changes how duties and taxes are managed for commercial imports into Canada.

From 20 May 2025, the financial grace period ends. This means:

• Importers will no longer be able to use their customs broker’s Release Prior to Payment (RPP) bond to clear shipments without upfront payment of duties.
• Businesses must post their own financial security within the CARM Client Portal to continue using deferred payment clearance.

(NOTE: Include the source as a hyperlink here, for more reference) According to a March 2025 notice in the Canada Gazette, fewer than 15% of importers have posted the required financial security. This suggests that a large volume of commercial shipments could face processing delays at the border.

While the CARM system is designed for B2B imports, any disruption in commercial lanes may have ripple effects on B2C flows and general border efficiency.

Why These Two Events Are Problematic Together : 

Individually, each development presents manageable operational risks. Together, they could create a compounding effect:

• A Canada Post shutdown would interrupt final-mile delivery for many international shipments entering Canada.
• The CARM transition deadline could cause processing bottlenecks and clearance delays at customs for non-compliant importers.
• Parcels may be delayed, returned, or held at the border, particularly if retailers are unaware of the changes or slow to act.

For e-commerce sellers targeting the Canadian market, this combination poses a significant threat to service continuity and customer satisfaction.

Action Steps for E-Commerce Businesses : 

1. Review your customs clearance process
   Check with your customs broker or freight forwarder to ensure you are registered in the CARM Client Portal and have the appropriate financial security in place.
2. Consider alternative last-mile options
   If you rely on Canada Post, assess contingency delivery solutions with private carriers such as Purolator, UPS, FedEx, or DHL, which may continue operating during a strike.
3. Communicate proactively with your Canadian customers
   Provide transparent updates about possible delays between 20 and 30 May, and manage expectations around delivery timelines.
4. Use technology to support compliance
   Platforms like MyDutyCollect can assist in automating duty estimates, ensuring customs compliance, and offering real-time insights to help avoid costly surprises at the border.

At MyDutyCollect, we support businesses in navigating these complex regulations by offering automated customs clearance, precise duty and tax calculation, and compliance solutions. As trade regulations evolve, having the right tools in place can make all the difference.

Get in touch with us to find out how we can assist your cross-border operations. Subscribe to our blog and visit our website and LinkedIn page for more updates. You can also contact us by sending a message to info@mydutycollect.com. We’d be delighted to hear from you.

Sources : 

–Regulations Administered and Enforced by the Canada Border

–CARM: Assess and pay duties and taxes on imported commercial goods

–Update on the Industrial Inquiry Commission and negotiations with CUPW