25% Canada Tariff and De Minimis Exception

[my-cottage-books-and-antiques]

News reports indicate that a 25% tariff will go into effect on March 4th. This will apply to Mexico and Canada. An additional 10% will be added to Chinese products.

However, FOR NOW, the $800 de minimis exception remains in effect, and will continue until the US has policies and procedures in place to deal with lower dollar shipments. Just how long that will be is, of course, anyone's guess, but that exception probably does give our ebay Canadian sellers some extra breathing room as they decide how to deal with the 25% tariff.

I'm guessing many Canadian sellers are taking steps to ramp up sales within Canada and to increase sales to other countries. I would also guess they are looking at their margins, talking to suppliers, etc, to determine how much of the tariff to pass onto the American consumer (while remaining competitive).

ebay has a Seller Check In this Friday, so hopefully ebay might have some suggestions for Canadian sellers at that time.

As an American seller who sources within the US (mostly used items) and sells very little internationally, the direct impact on my ebay business will be minimal. I am posting this primarily as an FYI. 

[tsme35]

For now, the only thing I see that could effect US sellers is shipping materials. China is the world's top producer of paperboard and packaging paper, USA is 2nd. I haven't freaked out yet but probably wouldn't hurt to stock up, haven't decided yet.

[my-cottage-books-and-antiques]

@tsme35

Not all US sellers source within the US ... Many design items and have them manufactured elsewhere, or import or use foreign drop shippers. I think most of the "regulars" here do source within the US, but it is well to remember we aren't necessarily a representative sampling of U S based sellers.

But I agree, the direct impact on my type of business will be minimal. Packing supplies, maybe a new printer or PC, etc ...but inventory sourcing won't be impacted for me 

[ryry-jj]

And a lot of the paper we use in making corrugated boxes comes  from Canada and Mexico...as does a lot of our paper for towels and tissue.   Those products may be made /converted here but the source of material is not 100% US

[chapeau-noir]

Whether tariffs affect pricing or not, corporations will increase prices anyway to ensure greater profits. It's their M.O.

[slippinjimmy]

Trump is now threatening tariffs on ALL agricultural products no matter what country they come from so if you eat bananas , drink coffee/tea, enjoy imported cheese, chocolate, imported wine, beer or spirits, Asparagus in the winter etc. etc. etc. get ready to pay a lot more as these items cannot be produced in the US.

Latest prediction is that the average new vehicle from GM, Ford, Chrysler (Stellantis) will rise by about $10,000. If new cars go up, used cars will also go up just as they did during Covid.

Canada has already announced that countervailing duties will be applied to most US imports, some as soon as Wednesday and the rest before the end of March.

Mexico may follow and in the meantime their lawsuit against US gun manufacturers has been accepted by SCOTUS (not sure what chance they have of winning).

For sellers who only deal in US goods, you may think tariffs won't affect you but a return of inflation and a rise in unemployment will not encourage anyone to spend money on non-essential items.

[chapeau-noir]

We are in the dumbest timeline.

[tsme35]

That's true, tariffs may help me, I sell fishing items which a lot are made in china. I pick up all my items from yard sales, flea markets and FB market place.

[tsme35]

Yea I googled "where does most paper come from", that's what it said. I did see a story where TP and paper towels came from GA, TN and the Carolina's

[tsme35]

Ain't that the truth, was going to buy a new truck last year but interest rates went through the roof, now prices are going to go up. Also with the tariffs, inflation that will increase with it, loss of jobs, I figured sales will drop and I couldn't afford a new truck payment. I just had my '99 dodge dakota  totally overhauled, bought it new 26 yrs ago. Cost me a grand but that's a quarter then the sales tax on a new one, drives like new and I don't have the $700 truck payment next month lol.

[greatstuff80]

Canada is already sourcing oranges from Brazil. Canada and China have enacted their own tariffs in response. The rest of the world may just decide to do an end run around the US. Sooner or later, we'll probably lose the de minimis. Prices are already increasing.  My grocery bill was a good 10% more last week. Be prepared. It's not likely to get better anytime soon. 

[meme6253]

And don't forget that will put less money in consumers pockets which will have an impact on all sales, B&M & Online, People are already hurting & asking for relief & this offers the complete opposite.

[meme6253]

I've been saying this for awhile now, Be prepared & brace yourselves, It's going to be a very rough ride!

[lux.ra_14]

Let's cut to the chase: No one wins in a trade war, and that will include eBay sellers and American consumers in general.

As the Wall Street Journal put it in an editorial headline, what we're facing is this: The Dumbest Trade War in History.

[meme6253]

Tariffs are a dangerous tactic, They could very well backfire, It winds up an Economic War, Who cuts first or who bleeds last.