Small Nova Scotian businesses halt shipping to U.S. amid tariff concerns
The Curling Store, a small Nova Scotian business, recently made the decision to halt shipments to the United States due to the ongoing tariff war. This decision came after several incidents where American customers were faced with unexpected extra charges on their purchases. Scott Bowers, the owner of the Curling Store, shared an experience where a customer called to complain about a $104 US charge on a $180 US purchase. Unable to retrieve the product due to high return shipping fees, Bowers had to issue a refund to the customer.
The root of the problem lies in a recent executive order signed by U.S. President Donald Trump, which ended an exemption that allowed tax-free entry of small packages of goods from China and Hong Kong worth less than $800 US. This change directly impacted businesses like the Curling Store, where approximately 95% of their products are manufactured in China. With most shipments falling below the $800 US threshold, American customers were previously not subjected to additional taxes.
In response to these challenges, the Curling Store and another Nova Scotian business, Classy Cards Creative, have ceased shipping products to the U.S. Classy Cards Creative, known for its stationery products, also relies heavily on Chinese manufacturing. Owner Cassy Collins mentioned that about 70% of her customers are based in the U.S., making the decision to stop shipments a difficult but necessary one.
Looking ahead, both businesses are exploring alternative solutions to navigate the current trade landscape. Collins is considering setting up a drop shipping company in the U.S. to streamline the shipping process, while also exploring new manufacturing options. Bowers, on the other hand, plans to shift his focus to Canadian clients, as only 10% of his sales were to the U.S.
Despite the challenges posed by the tariff war, both businesses remain hopeful for a resolution that would allow them to resume shipping to the U.S. In the meantime, they are adapting their strategies to continue serving their customers effectively. Through creativity and perseverance, these small businesses are navigating uncertain times with resilience and determination.
