‘Chaotic moment’: How Trump threw a wrench in the gears of Canadian e-commerce
On any given day, Canadian-based logistics company GoBolt processes and ships nearly 100,000 items for retailers such as Holt Renfrew & Co. Ltd. and IKEA. Around 65 per cent of its deliveries are destined for the U.S., and virtually all of those are valued at US$800 and under, which qualifies them for what’s known as the “de minimis” exemption to the Tariff Act of 1930.
In effect for nearly a century, the exemption, also known as Section 321, allows inexpensive goods to flow into the U.S. tax- and duty-free and with minimal paperwork.
“You create an electronic manifest via an online tool (that) includes simplified details like shipment type and recipient information,” said Jarrett Stewart, GoBolt’s senior vice-president of commercial. “Then you submit it to the U.S. Customs and Border Patrol (CBP). If your manifest was submitted properly, you will cross without issue.”
Or at least, that’s how it worked until earlier this month, when U.S. President Donald Trump hurled a wrench into the gears of global e-commerce by cancelling the exemption for goods originating from China and Canada as part of separate tariff orders against both countries.
Though the Canadian order was paused for 30 days, the Chinese cancellation went into effect before being halted on Feb. 1 to give the U.S. time to put systems in place to collect the tariff revenue.
Calling it disruptive is an understatement
The turmoil sparked a “chaotic moment” for Canadian retailers and logistics companies, many of whom source and manufacture products in China and ship them to U.S.-based customers, according to Mackenzie West, director of market development at Ontario-based customs broker GHY International.
“Calling it disruptive is an understatement,” West said,
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