Sign in Subscribe
Tariffs

Indigenous Businesses Halt Shipments to US Amidst Tariff Regime

Strategic Insights

— 2 min read

Small Indigenous businesses are halting shipments to the US in the wake of President Donald Trump's tariff regime, citing the uncertainty and administrative burdens it causes. The new rules, set to come into effect, require vetting and subject purchases valued under $800 to their origin country's applicable tariff rate, which can range from 10 to 50 per cent. This has led to concerns among Indigenous business owners about the impact on their sales and the reach of their products. "There needs to be a resolution to allow Indigenous Peoples to continue to undergo the trade routes that they have established and practised," said Matthew Foss, vice-president of research and public policy at the Canadian Council for Indigenous Businesses.

Key Takeaways:

  • Indigenous craftworks are exempt from tariffs under the current Canada-US-Mexico trade agreement, but the documentation needed to secure that exemption may be too cumbersome for small businesses.
  • The new rules require vetting and subject purchases valued under $800 to their origin country's applicable tariff rate, which can range from 10 to 50 per cent.
  • Stevi Riley, owner of The Beaded Hero, stopped all sales to the US due to the new import rules, citing a possible 35-per-cent increase in the cost to ship across the border.
  • Tribal Spirit Drums and Music and Dominique O'Bonsawin's Cedarlilie Beads also halted US-based sales due to the de minimis changes.
  • Jack Royal, chairman and CEO of the Indigenous Businesses Corp., stated there is a lot of uncertainty in the US-Canada relationship, causing instability for Indigenous businesses and Canadians alike.

Statistics:

  • 25 countries have already suspended postal services to the US, according to the Universal Postal Union.
  • 50 per cent is the maximum tariff rate for purchases valued under $800, under the new rules.
  • March 2023 is when the new rules are expected to come into effect, according to President Donald Trump's announcement.
  • August 27 was when Tribal Spirit Drums and Music posted on social media that they would be halting US-based sales due to the de minimis changes.
  • 35 per cent is the potential increase in the cost to ship across the border, as stated by Stevi Riley.

Sources:

  • "Stevie Riley, who lives in Walpole Island First Nation and operates The Beaded Hero, said around half of her orders come from the U.S."

Source: The Canadian Press

  • "Twenty-five countries have already suspended postal services to the U.S., according to the Universal Postal Union."

Source: Universal Postal Union

Read more