As the US implements President Trump’s Executive Order to remove the de minimis duty-free treatment on parcels valued less than $800, many Canadian artists, writers, and other creators are feeling the impact.
Mark Gagné, an illustrator from Sudbury, Ont., is stopping all shipments to the US because his artwork will no longer fall under a trade exemption that protected him from tariffs. Gagné said 90 per cent of his online sales are to the US. But a 35 per cent tariff makes his artwork uncompetitive. To compensate for the loss in business, he said, he'll need to explore other options, such as letting his US customers purchase digital versions of his artwork, which they can print at home.
Gagné said he's spoken to other artists who are in similar situations. His customers are also frustrated with the end of tariff exemptions for shipments under $800.
"Most people are not happy with the decision," he said. "I have a lot of customers in the U.S. that like to order fairly regularly and they understand my decision, like, they don't blame me at all. And they're upset with the administration down there and just the decisions that they've been making."
Michelle Auger, a senior policy analyst with the Canadian Federation of Independent Business (CFIB), said one-third of small and medium businesses will be affected by the loss of the "de minimis" exemption in the US. But Auger said goods that are compliant with the Canada-United States-Mexico Agreement (CUSMA) can still cross the border tariff free. Determining if goods comply with CUSMA, and completing the required paperwork, usually means working with a customs broker.
The preceding information derives from the following CBC article: Northern Ontario illustrator stops shipments to U.S. customers as tariff exception ends | CBC News