The Decibel How Canadian businesses are getting caught up in U.S. tariffs on China
May 27, 2025
Mariya Postelnyak, a consumer affairs reporter for The Globe and Mail, sheds light on how Canadian small businesses are grappling with U.S. tariffs linked to China. She discusses the challenging landscape these businesses face, especially post-COVID-19. From navigating price hikes and operational hurdles to employing inventive strategies like stockpiling and adapting supply chains, Mariya reveals the resilience of entrepreneurs amid trade uncertainties. Her insights expose the delicate balance between competition and survival in a complex global economy.
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De Minimis Exemption Explained
- The U.S. de minimis exemption allows import of packages valued $800 or less duty-free, supporting growth of many businesses.
- Canada has a much lower de minimis threshold at $150, with taxes applicable above $40 packages.
Blair Nadeau's Business Model
- Blair Nadeau runs a bridal accessories business with 85-90% orders from the U.S.
- She built her model around relying heavily on the U.S. de minimis exemption to avoid tariffs.
US Tariffs Impact on Chinese Imports
- The U.S. removed duty-free entry only for Chinese goods, imposing high tariffs on them including on de minimis packages.
- Recently, tariffs were lowered under a 90-day truce but remain significantly higher than before on Chinese imports.