Some Indigenous businesses in Canada halting exports to U.S. amid Trump tariffs regime

In light of President Donald Trump’s new tariff regime, some small Indigenous businesses are facing challenges with their shipments to the U.S. Despite long-standing trade ties between Canada and the United States, these businesses are feeling the impacts of the new import rules.

Matthew Foss, the vice-president of research and public policy at the Canadian Council for Indigenous Businesses, emphasized the importance of honoring the trade routes and treaties that have been established in the past. He believes it is up to the federal governments of both countries to find a resolution that allows Indigenous Peoples to continue their trade practices.

President Trump’s decision to suspend duty-free de minimus imports has caused concern among Indigenous businesses. The new rules require shipments valued under $800 to undergo customs clearance and be subject to applicable tariff rates. This change is part of the government’s efforts to boost domestic business development.

Indigenous craftworks are currently exempt from tariffs under the Canada-U.S.-Mexico trade agreement. However, the administrative burdens of securing this exemption may be too cumbersome for small businesses to handle. Foss is advocating for the federal government to address these challenges, but progress has been slow.

Some Indigenous businesses, such as The Beaded Hero and Cedarlilie Beads, have decided to halt sales to the U.S. due to the new import rules. This decision is driven by concerns over increased shipping costs and the potential complications of navigating the new regulations.

The uncertainty in the U.S.-Canada relationship is causing instability for Indigenous businesses and Canadians alike. Jack Royal, the chairman and CEO of the Indigenous Businesses Corporation, highlighted the need for certainty and support for Indigenous businesses during these challenging times.

While Canada Post has not suspended exports, other countries have already taken this step in response to the new U.S. import rules. The Universal Postal Union reports that 25 countries have suspended postal services to the U.S. until further clarity is provided on how these measures will be implemented.

The Canadian Council for Indigenous Businesses is actively engaging with the Canada Trade Commissioner Service to find solutions for cross-border trade. At the Assembly of First Nations annual general meeting, resolutions are being discussed to address the challenges faced by Indigenous businesses in light of the new import rules.

Despite the current uncertainties, there is hope that the situation will improve in the future. Indigenous businesses are advocating for their rights to cross-border trade to be upheld, and are looking towards the next U.S. administration to potentially bring about positive changes for Canada-U.S. trade relations.