Incoming U.S. Gov’t 25% Tariff Proposal on ALL Canadian Products

[wilsonharborsales]

The incoming U.S. administration has announced today that they will sign an executive order on January 20th that will add a 25% import fee on all goods entering the U.S. from Canada. Under the proposed law, there will be no exemptions for consumer goods.

[bonecrusher86]

Will tariffs be imposed on sales of items from Canada to United States if the item is "Made In America"?

[bonecrusher86]

Will USA buyers and Canadian sellers be slapped with a 25% tariff if the item being shipped from Canada to United States is "MADE IN AMERICA"? (The item is being repatriated back to its birthplace.)

[lotzofuniquegoodies]

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@bonecrusher86 wrote:

Will USA buyers and Canadian sellers be slapped with a 25% tariff if the item being shipped from Canada to United States is "MADE IN AMERICA"? (The item is being repatriated back to its birthplace.)

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@bonecrusher86 

The Trumpster is under the impression that any trade is bad trade and therefore unwanted trade that should be taxed, no matter who it penalizes!!!

[flipistics]

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@bonecrusher86 wrote:

Will USA buyers and Canadian sellers be slapped with a 25% tariff if the item being shipped from Canada to United States is "MADE IN AMERICA"? (The item is being repatriated back to its birthplace.)

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It's not supposed to be, but that doesn't mean it won't be. Also, it's possible that there could be brokerage charges applied to the item even if no tax or duty are payable depending on how it's sent.

Personally, I'm operating under the assumption that it won't be for now.

[cottagewoman]

Look - IF de minimis is removed for products with a CoO that should be tariffed, the exact same s**t show that occured at the border points of entry on February 4th will happen again - every truck will need to be inspected if CBP is suspicious of tariffed goods are onboard, and trucks will be turned away, hundreds of thousands dollar fines imposed,etc. No cross border service will run the risks - it's too great. Until such time that updates are made to the entire customs system into the US, they can't manage low value shipments without de minimis. If they decide to remove it entirely, the ancient customs policies for formal entry will buckle under the weight of one day of low value shipments. E-commerce changed everything, and they sure as heck aren't ready to handle that kind of sweeping change.

[dity8858]

I will not be purchasing anything again which comes from the US

[lotzofuniquegoodies]

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@stringers_books_and_collectibles wrote:

Hello all, what will probably happen is what many Canadians ask of US sellers. We'll be asked by the buyer to put $10.00 or something like that on the declared value. 

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If you were to do that, you would be making a fraudulent declaration to US customs and be breaking the law. So not recommended. Reason why you are signing that document. For couriers a copy of packing slips is required that has to match with the customs invoice. At this time the post office does not require but that could change going forward. 

[reallynicestamps]

Which comes down to -- the USA needs to hire  LOT of customs agents.

Yesterday.

And the exporters already have the importers money.

So will the Canadian exporters be unhappy?
Or the (voting) (letter writing)(phoning) (emailing) American importers?

[reallynicestamps]

We'll be asked by the buyer to put $10.00 or something like that on the declared value.

If we are buying a tracked label the description (title) and value are already on the label, and we are required to give the HS code.

So we have a good reason to politely refuse to change the value.

[intimewithmusic]

@bonecrusher86 

@lotzofuniquegoodies  is correct. In order for Trump to do what he's doing he has to nullify the trade agreement with a legal argument. In this case he chose fentanol for a legal excuse.

The trade agreement was the instrument allowing duty free movement. Since Feb he has insinuated ALL goods from Canada we're subject to tariffs. This past few days he has modified his retorick and is saying Canadian produced goods. 

Frankly I think he wants to generate as much money as possible and if he just tariffs Canadian made" the revenue will be peanuts.. 

[recped]

The overwhelming share of exports from Canada to the US are of Canadian origin.

[ilikehockeyjerseys]

I don't think this would be a good thing. The better alternative would be eBay delivering more value for the final value fees we already pay. Promo codes, pay someone to finally implement much needed marketing features on the Canadian side (coupons, by x get y off, etc). 

If eBay ever drops final value fees on the Canadian side, that is a very scary thing because even with charging buyers a premium at checkout, eBay giving up on collecting revenue at the same scale tells me that they don't believe in the platform and they may not intend to support it long term or at a high enough level for Canadian sellers to continue to be successful. 

Canadians need some version of the global shipping program to increase the amount of places that a seller can reasonably ship to by removing the barriers to ship there. Integration or partnership with Stallion and Chit Chats to lower shipping costs and increase the available carriers. As in, imagine if eBay worked with Stallion to create more mainstream drop spots like how Amazon has Michaels, Staples, Circle K, etc. 

Marketing is a major hurdle on eBay. It is really difficult to cross-sell or build repeat customers. Even other sites like Poshmark are way ahead with how they allow buyers to build bundles. 

Our dollar is really low, so if eBay can figure out a GSP for Canadian sellers and create a way that US buyers can see exactly what they pay and know that they won't be hit with anything else, I sitll think that buying from Canada would be attractive to US buyers. It might actually be a competitive advantage for eBay, because if they could demonstrate that US buyers are more likely to buy from Canadian stores who sell on eBay through a GSP, they could court retailers big and small. They could delivery value to those retailers by re-opening the US market to them.

Which isn't to say sellers couldn't ship directly to the USA through Canada Post, but as Canadians we know all too well how we avoid sellers who use Fedex or UPS because of the unpredictability of brokerage fees. I could see that being a problem that prevents US buyers from continuing to buy from Canadians (despite the great deal our low dollar presents to them). So eBay solving that problem with a GSP could delivery a lot of value for sellers and buyers. 

[mrdutch1001]

" Integration or partnership with Stallion and Chit Chats to lower shipping costs and increase the available carriers. As in, imagine if eBay worked with Stallion to create more mainstream drop spots like how Amazon has Michaels, Staples, Circle K, etc."

The eIS program is open to ALL USA sellers,...and what you are suggesting with Stallion and Chit Chats is a very limiting program as Stallion and Chit Chats is available only to a limited number of Canadian sellers...

and unless such a shipping program were 100% better than the eIS program,USA buyers would want no  part of it either, just as Canadian buyers want no part of the USA's eIS program.

[flipistics]

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@mrdutch1001 wrote:

The eIS program is open to ALL USA sellers,...and what you are suggesting with Stallion and Chit Chats is a very limiting program as Stallion and Chit Chats is available only to a limited number of Canadian sellers...

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I don't see why. USA sellers ship the item to the hub. A hub close by to the Stallion location would allow the same. As long as sellers could opt out and send directly to certain countries, I think it makes sense.  There's so many new laws coming into effect that it's really hard to keep on top of it. eBay certainly hasn't been particularly helpful in that regard.

[mrdutch1001]

and you truly believe either Stallion or Chit Chats wants that responsibility for a HuB? and/or that either wants to be beholden to eBay? Canada does not have the population to support such an endeavor.

[flipistics]

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@mrdutch1001 wrote:

and you truly believe either Stallion or Chit Chats wants that responsibility for a HuB? and/or that either wants to be beholden to eBay? Canada does not have the population to support such an endeavor.

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No, they'd just handle the shipping. Someone else would be responsible for actually running the hub itself. That said, Stallion does seem to be looking to do 3PL stuff too, so maybe they actually would?

Heck, I would assume a hub like that could be set up to handle international orders for all the various marketplaces, not just eBay.

[mrdutch1001]

"I would assume a hub like that could be set up to handle international orders for all the various marketplaces, not just eBay."

perhaps in an ideal world, and without a DT in the USA to create chaos everywhichway; but otherwise I see that as a dream world wish...

[ilikehockeyjerseys]

I am suggesting multiple separate ideas to deliver value to Canadian eBay sellers with the revenue generated by fees.

1. A GSP program available to Canadians that simplifies international shipping, and can be marketed to US buyers as showing them the complete final cost at checkout with no surprise fees at the door.
2. Partnering with Stallion or Chit Chat and using eBay's marketing power to improve accessibility to those platforms by having their services integrated to eBay labels, and finding a more widespread mainstream partner to act as a drop spot. (For example, Amazon returns can be dropped at Circle K.)
3. Introduce marketing features that allow Canadian sellers to actually market to their buyers. Things like store generated coupons that can be targetted at past customers, or very easy to understand multi-item discounts. For example, on Poshmark if you click on a store to buy one item there is a button that lets you build a bundle to get a pre-determined discount from the seller. This encourages buyers to look at the offerings from the seller, and consider buying 3 items instead of 1.
4. Bite the bullet and release more frequent eBay funded coupons and promos. The last one they released for the Super Bowl, resulted in me selling multiple high priced items ($500+) that otherwise had been sitting around for months (although they did have a lot of engagement).

The two major threats to eBay Canada sellers are the uncertain future of Canada Post, and the threat that the de minimis will either be removed or substantially lowered. The above considers that. How realistic any of the suggestions are, I don't know. 

On USA buyers not wanting to buy from a Canadian version of the GSP - I don't think that would be true. Remember, we are talking about a hypothetical scenario where the de minimis is eliminated.

If the de minimis is eliminated, it would be a huge advantage for eBay to be able to market to both American consumers and Canadian businesses that if an American buys something from eBay Canada, they know exactly what it will cost when they checkout and there are no hidden charges at the door.  

(If you want a smaller scale Canadian comparison, informed Canadian shoppings completely avoid US sellers who use UPS and Fedex and only shop from sellers who use USPS (Canada Post). This is because of the unpredictability of brokerage fees.)

Not to mention, the GSP would open up Canadian sellers to ship to 100s of millions of other buyers. I currently only ship to the USA and Canada. A GSP program would allow me to continue doing that, but pass on the complexity and liability of shipping internationally to eBay. I would do it in a second. Any sales I lose to the USA through the tariffs raising the cost of my items would be supplemented by sales gained from international locations that I would not ship to without a GSP program.

[mrdutch1001]

"How realistic any of the suggestions are, I don't know."

I for one live in the realistic world not a wishfulthinking dream world, so I live for the now and take things one day at a time.

[ilikehockeyjerseys]

https://stallionexpress.ca/services/3pl-fulfillment/

Stallion already made a play into the 3PL business, including a recent expansion with a massive US facility. They marketed this to their Canadian customers with the idea that they could pre-import their inventory into the USA and have Stallion offer the fulfillment. Basically, what Amazon does with FBA.

I wasn't suggesting that eBay should use Stallion for a Canadian version of the GSP, but looking at their business model and expertise, it doesn't seem to be that outlandish of an idea.