Manitoba business halting U.S. shipments over end to tariff exemption

CBC

2 days ago

A Manitoba small business owner says she's suspending shipments to the U.S. after a move by President Donald Trump that will make selling products to American customers more expensive.
The "de minimis" exemption has allowed parcels with a value of $800 US or less to be shipped to that country without facing tariffs. But last month, Trump signed an executive order to eliminate the duty-free exemption for all countries starting Aug. 29.
Leiah Bauer, owner of Apothecandy Shop, said she's decided she will stop taking orders from U.S. customers ahead of that. The local business, which sells handmade natural soaps and other beauty products, said in a social media post Wednesday carrying on with the shipments could become prohibitively expensive.
"It hurts us in the long run, but we're small business owners and we pivot, and that's what we do," Bauer said.
The Manitoba Craft Council says many of its members are scrambling to figure out how to respond to the change.
"People are pretty upset," said Tammy Sutherland, the council's executive director. For some craftspeople in Manitoba, the U.S. market accounts for 40 to 60 per cent of sales, she said.
"People are really struggling to find information about what the implications will be, what the needed paperwork is."
Removal of tariff exemption causes trouble for some Manitoba entrepreneurs
3 hours ago
Under what's called the 'de minimis' duty-free treatment, goods under $800 were exempt from U.S. tariffs. However, U.S. President Donald Trump has signed an executive order to remove the exemption, causing a lot of confusion and uncertainty for small businesses in Manitoba.
The Canadian Federation of Independent Business said the exemption was a lifeline to small businesses. A survey conducted by the organization earlier this year suggested nearly a third of exporters used the de minimis rule to ship their goods.
"It'll affect businesses all across Canada. Manitoba businesses will get hit hard," said Tyler Slobogian, senior policy analyst for the Prairies with the federation.
"Many will have to ultimately scale back," he said.
"They're looking at their options right now — different markets they can expand to and whatnot — but it's going to … result in added costs for them and significant reduction in their client base in the U.S."
Slobogian said under the existing framework, businesses had to file less paperwork. Eliminating the exemption will result in an additional administrative burden for them, he said.
The confusion is the hardest part, said Apothecandy's Bauer.
"When you're a small business owner, you wear all the hats, and you're usually very busy wearing all those hats. Then all of a sudden, you need to start understanding international tariffs and trade agreements," she said.
"[It] seems to be changing every single day."