May 14, 2019

USMCA’s new duty allowances a heads up for Canadian e-tailers

The new North America trade deals present a challenge (and an opportunity) for Canadian retailers. The recent changes have increased the minimum transaction necessary to pay online duties and sales taxes on imports (“de minimis” rules), which makes online purchases at U.S. sites more attractive to Canadian shoppers. These changes should also serve as a wake-up call to Canadian businesses. Those who are not doing so already can take measures such as retooling websites, upgrading technology, and championing local credentials to consumers who want to buy Canadian.

Key Takeaways:

  • The US/Mexico/Canada agreement can result in increased profitability for Canadian Retail businesses if they up their game.
  • Canadians prefer to buy Canadian, so retailers need to make it as easy as possible for them to do so by utilizing new technology and trends, such as mobile commerce.
  • Brick and mortar stores should provide an enhanced experience to lure customers in and to buy.

“The truth is, Canadian retailers should worry less — and seize the moment to take advantage of change. The de minimis changes can offer new opportunities, particularly for small- and medium-size retailers in Canada.”

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