New US tariffs on goods from Canada, Mexico, and China are changing the shopping scene. The US government announced a 25% tariff on Canadian and Mexican imports and a 10% tariff on Chinese products on February 1, 2025.

Key Takeaways

• The US proposed a 25% tariff on Canadian goods, and in response, Canada announced a 25% retaliatory tariff on US products. Both tariffs were postponed for 30 days after negotiations.
  
  
• If the 25% tariff takes effect, it could lead to higher prices, supply chain disruptions, economic instability, and fluctuations in the Canadian dollar.
  
  
• Choosing alternative brands can help shoppers avoid tariff-related price increases while still buying their desired products at lower costs.

Latest Changes in US-Canada Tariffs

On February 1, 2025, President Donald Trump announced a 25% tariff on Canadian imports, with energy resources facing a lower 10% tariff. These tariffs will take effect on March 4, 2025, after a 30-day delay negotiated between the US and Canada.

According to President Trump, the tariffs aim to address illegal immigration and the spread of illegal drugs. He claimed that the International Emergency Economic Powers Act (IEEPA) was used to justify the decision and emphasized that protecting American citizens is his top priority.

In response, the Canadian government, led by Prime Minister Justin Trudeau, has proposed a 25% imposed retaliatory tariff on US goods entering Canada. Initially set to take effect on February 4, this measure has also been postponed for 30 days.

Despite the delay, the looming trade war between the two countries raises concerns about its economic impact on both sides of the border.

Impact of The 25% Tariffs (If Implemented)

Here's a breakdown of potential impacts:

• Increased Consumer Prices. When tariffs are imposed, the cost of producing goods often increases. Manufacturers may pass these increased costs on to consumers through higher product prices.
  
  
• Supply Chain Disruptions. Due to tariffs, businesses that rely on US-made components may encounter difficulties sourcing those parts. This can lead to production delays and disruptions in their supply chains.
  
  
• Economic Uncertainty. The threat of tariffs creates an unstable economic environment. This uncertainty makes it harder for businesses to make long-term investments and plan for the future.
  
  
• Canadian Dollar Fluctuations. The potential for tariffs can influence the value of the Canadian dollar. Fluctuations in the dollar (either up or down) can affect the purchasing power of Canadians, making imports more or less expensive.

Remember, if the new tariffs are implemented, the 25% tariff will apply only to products made in the US. This tariff war would not affect products made elsewhere and imported from the US.

US Brands to Avoid And Alternatives

With potential tariffs to start, now is the right time for Canadians to explore alternatives to US brands. Choosing non-US manufactured brands can reduce the impact of duties and taxes while enjoying the convenience of international online shopping.

Here are some US brands and their alternatives worth considering:

Home Goods

Kitchen and Cookware

Clothing and Footwear

Electronics and Tools

Miscellaneous

Snacks

Drinks

Makeup Brands

Final Thoughts

International trade is complicated, and tariff situations can change quickly. Therefore, staying informed about the evolving trade policies between the US and Canada and checking alternative brands is crucial for making cost-effective purchasing decisions.

Shop Around The World with Shippsy

Despite the current trade challenges, Shippsy remains committed to providing Canadians with an affordable and smooth shipping experience. Our package forwarding service lets you shop from any online store and have your purchases sent to Canada.

Here's how to enjoy shipping with us:

1. Create a Shippsy account and receive your US shipping address.
   
   
2. Shop from any of the alternative brands listed earlier, using your US address as the shipping destination.
   
   
3. Take advantage of US-only deals and discounts to save money and get more for your budget.
   
   
4. Update your Shippsy account with the expected package details.
   
   
5. Once your package arrives at our US warehouse, we'll forward it to Canada.

To reiterate, only products made in the US are subject to the 25% tariff. The tariff won't affect your purchases from non-US-made brands, even if they're shipped to our US warehouse before being forwarded to Canada. Happy Shopping!

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