U.S. ends duty-free shipping, northern Ont. business worried about the impact

Some small businesses fear that the end of U.S. duty-free shipping will hurt their bottom lines. The change to the $800 de minimis exemption creates a new cost.

Some small businesses across northern Ontario have expressed concerns over duty-free shipping to the United States coming to an end and are worried it’ll affect their bottom lines.

As of Aug. 29, the century-old de minimis exemption, which allowed goods under $800 to enter the U.S. without extra fees, came to an end following orders from President Donald Trump.

Businesses face uncertainty and pivot strategies

Plus Factor is an inclusive clothing store in Sudbury. Its owner, Linda Audette, said there’s a lot of uncertainty.

“The uncertainty in business, there’s always some, but there’s even more now, so it just makes the long-term planning a lot more difficult,” she said. “Like I said, after 15 years, I truly thought this was going to get easier. It just seems to be getting more difficult.”

Audette said over the summer, she decided not to order from her American supplier and instead chose Canadian suppliers.

“It was all last minute,” she said. “With the tariffs, it changes everything. It’s definitely making a shift to the business.”

New enterprise forced to rethink expansion

It’s a similar story for Noukify, a downtown Sudbury business that offers clothing and products online and in-store.

Ajmerry Hossain, Noukify’s founder and chief operating officer, started the business two years ago after she moved from Bangladesh to Sudbury to earn her master’s in computer science at Laurentian University.

The company just opened its physical location two months ago.

“The tariff situation is definitely impacting us,” c said.

She said she’s been hoping to expand her business to the U.S., but had to weigh the cost.

“We are now thinking like two to three times, like, okay, should we, take the products from the U.S. or should we deliver the products to the U.S. because the traffic is now there,” Hossain said. “We need to now think … and restructure. Like how can we manage it?”

Shipping costs threaten customer base

Amanda Payette, owner of Whiteloft Ceramics, said in social media messages to CTV News that the costs of shipping her products to the U.S. have definitely gone up.

“I’ve been questioning if it’s worth shipping to the U.S. anymore, which is about 30 to 40 per cent of my clientele.”

Chambers of commerce report widespread impact

Jason Naccarato, the president of the Sault Ste. Marie Chamber of Commerce, said businesses are already feeling the pinch.

“A lot of the small ones right now, they’re really trying to pivot and trying to adjust and understand how it’s going to impact them. Some have just stopped shipping to the U.S.,” he said. “Others have tried to tack on their price. The added cost to their prices and sales volumes decrease. So, it’s had an immediate effect for sure.”

Naccarato said more support is needed from the provincial and federal government and supporting local is important now more than ever.

“Buy Canadian, Buy Ontario is more important than ever,” he said. “We would encourage all business owners and all consumers for that matter, and customers to really be mindful with your dollars and not to be where you’re spending.”

Donna Backer, the CEO for the North Bay Chamber of Commerce, weighed in on the topic as well.

“These exemptions on low value shipments to the US market/consumers helped small businesses in our area to thrive into a larger market and now they will be faced with extra costs, possible brokerage fees to ensure compliance, and with that may increase their costs to customers,” she wrote in an email to CTV News. “Some may decide to eat the extra cost, but ultimately there will be a cost. “

Backer added it could encourage more businesses to switch their attention to other consumers.