Canadian publishing industry hopeful books will be exempt from U.S. tariffs

CBC

01-03-2025

As Canada and Mexico await final details on U.S. tariffs that may be imposed next week, Canadian publishers say they are "cautiously optimistic."
Association of Canadian Publishers executive director Jack Illingworth said he's hopeful books will be exempt, should the tariffs actually materialize.
"Everyone's nervous, no one knows quite what to expect. Personally, I am cautiously optimistic that books will end up exempt from any tariffs that are imposed," Illingworth said.
"The word cautious is doing a lot of work there."
Illingworth suggested that, on average, the U.S. makes up about half of any given Canadian independent publisher's retail marketplace, but said that can vary greatly between companies.
"The U.S. is a really, truly important market."
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Don Gorman, the publisher of Rocky Mountain Books in Victoria, said Canada exports between $40 and $50 million worth of books to the U.S. each year. He said if U.S. tariffs were to go ahead next week, publishers may have to raise their retail prices.
Earlier this week, the Trump administration said North America-wide tariffs aren't a done deal — yet.
But President Donald Trump himself said "the tariffs are going forward on time, on schedule."
If they do go into effect next week, there is some reason to believe books will be exempt.
The International Emergency Economic Powers Act (IEEPA), established in 1977, authorizes the president of the United States to control international economic transactions amid a threat to the U.S., and protects what are known as "informational materials." That can include items such as publications, films, posters, phonograph records, photographs, microfilms, microfiche, tapes, compact disks, CD ROMs and art. The act was last updated Jan. 30, 2024.
But, as Rocky Mountain Books publisher Don Gorman pointed out, Trump might not honour the IEEPA.
"The person in power in the U.S. right now is not necessarily one to adhere to laws, rules, regulations or common sense, so there's a very good chance that he could decide to overturn that or ignore it."
So, it's all very unclear.
Gorman said the uncertainty has left publishers scrambling to prepare for the worst-case scenario — which right now, would be a 25 per cent tariff charged against the production cost of books.
"A number of [publishers] came up with strategies of putting books into the U.S. prior to the tariffs taking effect, which meant front-loading books into our U.S. warehouses," he said. "Books that were already in the U.S. prior to the tariff declaration would be exempt from tariffs."
He said he's also considered increasing the cost of books.
But, Illingworth pointed out, consumers aren't keen on paying more for books.
"Your typical reader doesn't really want to pay a whole lot more than $20.00 for a trade paperback," he said.
Illingworth said a price increase of just $2 per book could be enough to dissuade booksellers or libraries from purchasing it.
Both Gorman and Illingworth are urging Canadian consumers to buy Canadian books, written by Canadian authors, published by Canadian publishers, and from local bookstores to help offset any costs that may arise if and when tariffs are imposed.
"Go into your bookstore, go into your library, ensure that the books in your children's classrooms are published by Canadian publishers," Gorman said. "We need to find ways to increase exposure and sales of Canadian published books in this country."