Trade tensions escalated between the US and Canada after President Trump announced a 25% tariff on Canadian goods, prompting Canada to impose reciprocal tariffs on imports from the US. These changes present challenges and opportunities for Canadians who shop from US stores.

Key Takeaways

• The US and Canada have announced 25% tariffs on each other's goods, with the US initiating the tariffs. Both implementations were postponed for 30 days after the negotiations.
  
  
• The future of US-Canada trade relations is uncertain, and there is no clear indication of whether or when it'll be okay again.
  
  
• Prepare for potential tariffs on international goods by researching affected products, comparing prices and brands, and finding affordable shipping options. Stay informed about trade changes to shop smart, too.

Changes in U.S.-Canada Preferential Tariff Rates

US President Trump began February by announcing 25% tariffs on Canadian and Mexican goods and 10% on Chinese items. He cited the International Emergency Economic Powers Act (IEEPA) to justify the decision, saying it would address illegal immigration and drug concerns.

On the other hand, the Canadian government, led by Prime Minister Justin Trudeau, responded with a 25% retaliatory tariff on US goods that will enter Canada.

In addition, Canada prepared a three-stage retaliatory tariff plan if the trade war continues. This plan will counter the US tariff threats and target US industries while leaving room for negotiation.

Canada's retaliatory tariff plan includes:

• Stage 1. Tariffs on high-profile U.S. goods. Canada would quickly respond with tariffs on well-known U.S. goods to get attention and pressure the U.S.
  
  
• Stage 2. Reciprocal tariffs on key U.S. goods. After two weeks, Canada would add more tariffs, targeting about 37 billion CAD in US exports to broaden the economic pressure.
  
  
• Stage 3. Expansion of targeted tariffs. As a final step, Canada could impose tariffs on a wide range of US goods, up to 110 billion CAD, to maximize pressure.

Initially planned for February 4, 2025, both countries' 25% tariffs were delayed 30 days after negotiations. The new effective date is March 4, 2025.

However, on February 10, President Trump announced a 25% tariff on Canadian steel and aluminum, with no set implementation date. This move will impact Canada as one of these materials' largest US trading partners.

Canada's Prime Minister Trudeau is in Paris, strengthening ties with European allies. He has not yet commented on the new tariffs.

Future of U.S. And Canada Trade Relations

Canada and the US are part of the United States-Mexico-Canada Agreement (USMCA), a free trade deal between the three neighbouring countries. This agreement has greatly benefited consumers who are shipping between them.

However, President Trump's push for tariffs on Canadian and Mexican goods appears to put the deal at risk.

The agreement's future remains uncertain amid these trade tensions, as tariff policies can change rapidly based on ongoing negotiations.

What You Should Do Now

With possible tariffs set to take effect after the 30-day postponement, here are key steps you can take to continue enjoying your international online shopping:

1. Research Affected Products. Check which items will face higher tariffs and understand how prices might change. List the items you frequently purchase that might be affected by the new tariffs to know which products to avoid or reduce buying to save money.
   
   
2. Calculate Potential Costs. For affected products, calculate the potential increase in price due to the tariffs and factor this into your budget. Use online duty and tax calculators for easy, accurate estimations.
   
   
3. Explore Alternatives. This will be the best time to research brand alternatives to your usual online US shopping stores. By doing this, you can find more affordable products with better quality.
   
   
4. Use A Cost-Effective Shipping Solution. Compare different shipping services and consolidation options to reduce delivery costs. Consider using package forwarding services that offer better rates.
   
   
5. Stay Informed. Subscribe to reliable sources to stay updated on tariff changes. News outlets and shipping services are great resources, as these changes will impact their operations.

Remember that Canadian tariffs apply only to products manufactured by the US. If a product is made in another country, it won't be subject to these tariffs, even if it's shipped from the US to Canada.

Final Thoughts

The changing trade routine between Canada and the US is both an issue and a chance for Canadian consumers. This is an issue because it greatly impacts the country's product availability and people's money. Still, it is also an opportunity to look for new alternatives.

By staying informed, adapting your purchasing strategies, and using a cost-effective shipping solution, you can surely navigate these changes effectively.

Affordable Shipping with Shippsy

At Shippsy, we understand the complexity of the ongoing trade war. That's why, as a reliable package forwarding service, we do our best to update and always be transparent with our users. Currently, since no tariffs exist on non-U.S. manufactured products, most online shopping is still hassle-free.

Jay Alagon

Jay Alagon serves as the business manager at Shippsy, where he aims to provide Canadians with access to all US retailers without worrying about high shipping costs, long delivery times, and complicated paperwork associated with cross-border shopping. Outside of work, he enjoys practicing martial arts and woodworking.

Read all posts written by  Jayson Alagon