Canada Post says higher international and U.S. mail costs will sustain its operations
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OTTAWA – The planned increase in the price of stamps is meant to help Canada Post become self-sustaining after years of financial losses, the Crown corporation’s chief spokesperson said.
Last week’s federal budget announced the price of a single domestic stamp will go from $1.44 to $2 in 2027, with a seven per cent increase in cost each year after.
Jon Hamilton, Canada Post’s vice-president of communications, said this move is an attempt to better match the prices consumers pay with the organization’s operating costs and help repay some of the assistance Ottawa has provided to keep Canada Post afloat.
“We are just trying to return to the price of the service aligning more with the cost of providing the service, because it’s been out of whack for a number of years,” he said.
He said the price for U.S.-bound and international letter stamps will also go up but the amount has not yet been decided.
Canada Post is not changing the price of parcel shipping, which it says is a market-driven product.
Tara Joy Andrews of Enchanted Postmark Snail Mail Club said the price increase will affect how many Canadians use the mail.
“There is already a reduced number of people sending mail, and this increase will make that even smaller. Although snail mail and sending letters and postcards to pen pals are growing in popularity, I feel this increase will reduce how much people send,” Joy Andrews said in an email.
Her club provides subscribers with monthly postcards and stationery, with the goal of members sending letters of their own with the materials. The aim is to brighten someone’s day with the “simple joy of receiving mail.”
In February, the federal government gave Canada Post $1.01 billion in the form of a repayable loan to help the organization maintain services.
The recent budget proposes another $1.4 billion over two years to help support the Crown corporation’s operations.
It would also provide $1.2 billion over seven years to support Canada Post’s move to community mailboxes.
Hamilton said most Canadian mailboxes have been centralized already.
“Of the roughly 18 million addresses across the country, there’s only about four million left that still get door-to-door delivery. As we move forward we’re going to be converting those four million addresses,” he said.
Canada Post’s annual report says the Crown corporation saw $1.57 billion in pre-tax losses in 2025, the highest amount on record.
This report by The Canadian Press was first published Nov. 9, 2026.