Home Blog Page 413

Soccer World Central Absorbs Tariffs to Support Customers

By
Craig Patterson
-
Soccer World Central in Oakville. Photo: Soccer World Central

As the Canadian retail sector braces for the impact of newly imposed 25% tariffs on imported goods, one local retailer is taking a bold stand against price inflation. Soccer World Central, Southern Ontario’s leading soccer specialty retailer, has pledged to absorb the added costs rather than passing them on to customers.

Owner and CEO Chrys Chrysanthou, a seasoned business leader and former CPA, believes that maintaining fair pricing is crucial in supporting the community during these uncertain times. “We need to work together to get through this very tough period,” Chrysanthou stated in an interview. “It is wrong to profit while so many people are struggling.”

Putting Community First

Soccer World Central, founded in 2001, has grown into a premier destination for soccer enthusiasts in Ontario. With flagship stores in Oakville and London (opened March 1), and plans for expansion into Mississauga and Burlington, the retailer has long prioritized community engagement. This latest move underscores the company’s dedication to its customers at a time when many are facing rising costs on all fronts.

Chrysanthou’s decision to absorb the tariff costs stems from firsthand experiences with struggling customers. “We see a lot of different people coming through our doors—some are affluent, but many are struggling to put food on the table,” he explained. “I’ve had customers ask if they could pay for their child’s soccer shoes in installments. We even had someone over Christmas tell us they wanted to buy a gift for their kids but couldn’t afford it upfront.”

These personal interactions have solidified Chrysanthou’s stance on pricing. “For me to profit off their pain? That’s not something I could live with,” he said.

Inside the new Soccer World Central in London, ON. Photo: Soccer World Central

The Tariff Dilemma: How It Works

Typically, retailers apply a standardized percentage markup on wholesale goods. If a product costs $10 at wholesale and the markup is 50%, the retail price would be $20. However, with a 25% tariff, the wholesale price increases to $12.50. Many retailers would apply their traditional markup to this new cost, pushing the retail price up to $25. This means customers would pay not only for the tariff increase but also an inflated margin.

Chrysanthou, however, has chosen to do things differently. “Instead of marking up the new tariff-inflated price, I’m keeping my markup at the pre-tariff level,” he said. “So instead of charging $25, I’ll charge $22.50. I’m still covering the increased costs, but I’m not profiting from them.”

While this approach will reduce Soccer World Central’s percentage margins, Chrysanthou argues that his dollar margins will remain stable. “What I was making yesterday is what I’ll still be making tomorrow. My percentage profit might take a hit, but I refuse to profit from an artificial increase.”

Retail Challenges Beyond Tariffs

The tariff situation is only part of a larger economic challenge for retailers. The declining Canadian dollar is expected to further drive up prices, as most goods in the supply chain are denominated in U.S. dollars. “I’ve already had my brands call me to say that if the tariffs come into play, the Canadian dollar will drop, increasing the cost of everything we buy,” Chrysanthou explained. “That’s a reality we’re going to have to navigate as well.”

In addition to currency fluctuations, retailers are contending with rising operational costs. “My rent has doubled in the last four years. Minimum wage has jumped from $12.50 to $17.50. Every aspect of running a business is more expensive,” he noted. “But I firmly believe that as retailers, we have to be part of the solution.”

A Call for Collective Action

Chrysanthou is encouraging other retailers to adopt a similar approach. “If every retailer chose not to profit from tariffs, we could collectively ease the burden on consumers,” he said. “We’ve seen what happens when major corporations prioritize profits over people—the cost of living skyrockets, and more families turn to food banks. We need to do better.”

He argues that the responsibility extends beyond small businesses. “If the big grocery chains, gas companies, and other retailers committed to this, we could ride out this storm. But if we remain ignorant of the pain the average consumer is feeling, we’re going to lose this battle.”

Soccer World Central opened its second storefront in London ON on March 1, 2025 — the chain’s sales have grown from $500k to over $5 million annually in three years. Photo: Soccer World Central

Expanding with a Mission

Despite the economic headwinds, Soccer World Central is continuing its ambitious expansion plans. In addition to its existing location in Oakville and new store in London, the company is in the process of opening a 20,000-square-foot experience store in Mississauga and a 30,000–40,000-square-foot location in Burlington.

These new stores are designed to be more than just retail spaces. “We’re creating soccer entertainment facilities,” Chrysanthou revealed. “Yes, we’ll have retail, but we’re also integrating interactive experiences—turf areas where kids can try on shoes and play, TV lounges for watching games, and even foosball and video game stations. We want to be the local hub for all things soccer.”

This approach mirrors trends in the U.S., where major retailers like Dick’s Sporting Goods have been launching large-scale experiential stores to attract customers. “Retail is evolving,” Chrysanthou said. “If we want to remain relevant, we need to offer more than just products—we need to create experiences.”

A Business Rooted in Giving Back

Beyond pricing strategies and store expansions, Soccer World Central has long prioritized community support. The company has donated over $300,000 to various charities and grassroots soccer initiatives, reinforcing its commitment to accessibility and inclusion in the sport.

“Our mission statement is simple: to make every experience with the beautiful game a positive one,” Chrysanthou said. “That means eliminating barriers—whether they be financial, racial, or otherwise. Absorbing these tariff costs aligns perfectly with that mission.”

As Canadian businesses brace for the full impact of tariffs, Soccer World Central stands as an example of how retailers can put community first. “At the end of the day, it’s not about making a quick profit,” Chrysanthou said. “It’s about doing the right thing. And if more businesses take that approach, we’ll all be better for it.”

More from Retail Insider:

Monos Becomes First B Corp-Certified Luggage Brand in North America

By
Craig Patterson
-
Monos store on West 4th Avenue in Vancouver. Image: Monos

Monos, the Canadian travel and lifestyle brand, has achieved a significant milestone by becoming the first North American luggage brand to earn B Corporation (B Corp) certification. This recognition places Monos among a select group of businesses committed to the highest standards of social and environmental performance, accountability, and transparency.

B Corp certification is not merely a stamp of approval but a reflection of Monos’ deep-seated philosophy that thoughtful design and sustainability can coexist. The company, co-founded in 2018 by Victor Tam, Hubert Chan, and Daniel Shin, has built its reputation on producing high-quality, durable travel pieces designed to last a lifetime. 

Through a rigorous evaluation process, Monos secured a commendable 84.5 score, demonstrating excellence in governance, worker rights, community impact, and environmental sustainability. With fewer than 10,000 companies worldwide holding this certification, Monos is setting a precedent in the travel goods industry.

Commitment to Ethical and Sustainable Materials

Monos’ approach to sustainability is evident in its meticulous sourcing of materials. The brand has pledged to use premium vegan alternatives instead of animal-derived materials in its luggage, bags, and accessories. By incorporating recycled and recyclable materials, Monos ensures that every product contributes to a reduced environmental footprint. Key sustainable elements include:

  • Luggage shells made from 100% recycled or repurposed polycarbonate materials, certified by the Recycled Claim Standard and Global Recycled Standard.
  • Interior liners constructed from 100% recycled polyester.
  • Sling and belt bag buckles made entirely of recycled nylon.

This commitment extends beyond product materials, as Monos continually refines its supply chain to improve sustainability and ethical standards.

Elemental Blue collection, image: Monos

Environmental and Social Initiatives

As part of its journey to B Corp certification, Monos has implemented several impactful sustainability initiatives:

  • Water Conservation: The company has equipped its facilities with low-flow faucets, toilets, and showerheads, and has introduced rainwater harvesting for office plant irrigation. A dedicated water meter at its headquarters helps monitor and reduce consumption.
  • Supplier Accountability: Over 80% of Monos’ suppliers have signed a formal Supplier Code of Conduct, ensuring adherence to strict social and environmental guidelines.
  • Environmental Purchasing Policy (EPP): Monos prioritizes environmentally responsible purchasing for cleaning supplies, office materials, paper, and landscaping products, opting for recycled alternatives where possible.
  • Renewable Energy Integration: In partnership with Bullfrog Power, Monos has integrated renewable energy sources across all of its operational locations.
  • Sustainable Product Accreditations: Nearly all Monos products (99%) have received certifications from globally recognized bodies, including ISO9001, ISO14001, ISO45001, SA8000, and Sedex Members Ethical Trade Audit Report.
Monos Magnolia Bakery Collection. Image: Monos

A Leader in Responsible Travel

For travelers who prioritize quality, ethical production, and sustainability, Monos’ B Corp certification underscores its dedication to responsible design. Beyond its eco-conscious product materials, the company has also introduced a carbon-neutral shipping initiative, reinforcing its goal of reducing its environmental impact at every stage of production.

Victor Tam, CEO and Co-Founder of Monos, expressed his enthusiasm for this achievement: “In our pursuit of better travel, being recognized as the first North American luggage brand to become B Corp Certified is an extension of our ongoing commitment to travel mindfully and tread lightly. Earning this certification is a testament to our belief that thoughtful design can coexist with social and environmental consciousness.”

About Monos

Monos is a Canadian travel and lifestyle brand offering premium suitcases, bags, and accessories. Inspired by the Japanese concept of mono no aware—the appreciation of the beauty in fleeting moments—Monos champions the philosophy that the journey is as meaningful as the destination. Guided by the design principle of “less but better,” Monos crafts high-quality, minimalist products made to last a lifetime of travel.

More from Retail Insider: 

Canada Rallies Behind ‘Buy Canadian’ Movement Amid Tariffs

By
Retail Insider
-
Shoppers in Montreal. Photo: Celine Marsolais, Creative Commons Attribution Licence

By Melise Panetta

Escalating trade tensions between Canada and the United States have ignited a new wave of Canadian patriotism, with consumers consciously choosing made-in-Canada products as an act of economic self-preservation and national pride.

U.S. President Donald Trump is expected to impose tariffs on most Canadian and Mexican goods on March 4, after a month-long delay. This, along with Trump’s calls to make Canada the 51st U.S. state, has prompted Canadians to rally around the so-called “Buy Canadian” movement.

Recent research indicates a significant number of Canadians are now showing a strong preference for domestic products, with many willing to modify their purchasing behaviours. One recent poll revealed 42 per cent of Canadians polled will “absolutely do everything” to avoid purchasing U.S. products. Eighty-eight per cent said they would buy a product promoted as “made in Canada.”

Another poll found that 56 per cent of Canadians said they would stop buying a certain product altogether if there is no Canadian-made alternative.

While the “buy local” movement has deeper roots, often resurfacing during periods of economic tensions, the current surge stems from a desire to support homegrown brands and manufacturers they see as reflecting their values.

Buy Canadian movement challenges

While the Buy Canadian movement is gaining traction, actually sustaining it comes with notable challenges. Some experts caution that reducing reliance on U.S. imports is a gradual process contingent on consistent consumer commitment.

Two primary barriers stand in the way of this sustained change: the higher costs of Canadian-made goods, particularly during the ongoing cost-of-living crisis, and the difficulty consumers face in identifying domestically produced items.

Addressing these two issues is crucial for the long-term viability of the Buy Canadian movement.

Youtube video

Buying Canadian can be pricey

The first primary obstacle facing the Buy Canadian movement is the price disparity between domestic goods and their imported counterparts.

Canadian domestic goods often come with a higher price tag due to production costs, economies of scale, transportation and other economic factors. These factors make it difficult for local manufacturers to compete with cheaper foreign alternatives.

The ongoing cost-of-living crisis, which is driving up prices for goods and services across various sectors, is further intensifying the challenge. One of the biggest household expenses, the cost of groceries, remain particularly high, having jumped by 7.8 per cent in 2023 — its highest level in nearly 40 years.

Higher prices across almost all sectors has resulted in 71 per cent of Canadians naming the cost of living as a top domestic concern, making it the leading news story in the country in 2024.

While many consumers express a desire to support local businesses even if they are pricier, the reality of higher costs could make it difficult for consumers to consistently choose domestic products over more affordable foreign alternatives.

Is it really ‘Made in Canada’?

The second major obstacle for the Buy Canadian movement lies in confusion over product labels. For many Canadians, identifying which products are truly Canadian versus imported alternatives can be a challenging task.

A recent poll found that 42 per cent of Canadians believe grocery food products are made in Canada, while the actual number of products fully made in Canada is closer to 10 per cent.

Compounding matters further, understanding country of origin labelling can also be challenging. Labels such as “Made in Canada” and “Product of Canada” have specific definitions.

“Made in Canada” means the last substantial transformation of the good or service occurs in Canada but may contain up to 49 per cent imported ingredients, while “Product of Canada” means all, or nearly all, significant parts and processing are Canadian.

This nuanced labelling and similarity in wording can lead to confusion, making it difficult for consumers to make informed choices.

Building on the Buy Canadian momentum

Canadian businesses and retailers have been responding to growing consumer demand for domestic products with concrete marketing strategies. For instance, Loblaw Companies, Canada’s largest food retailer, has committed to “doubling down on securing food grown and made” locally.

Grocery stores are also making it easier for consumers to identify local products. Several grocery chains have revamped their in-store displays by using shelf tags, stickers and end-of-aisle signage to clearly identify Canadian-made food items.

Retailers and brands are increasingly spotlighting domestic brands by rolling out targeted pricing deals. Major grocery chains have begun offering significant price reductions and exclusive promotions on items branded as “Made in Canada.”

Additionally, Canadians are flocking to websites such as Madeinca.ca, which aim to demystify country of origin and labelling so shoppers can distinguish domestic products from imports.

Although maintaining this momentum may be challenging, consumers are eager to showcase their patriotism at the check-out. With businesses and policymakers actively improving product transparency and addressing cost concerns, the Buy Canadian movement is poised to gain further traction. After all, nothing embodies unity quite like a little patriotic shopping, the Canadian way.

About the Author: Melise Panetta is a Lecturer of Marketing in the Lazaridis School of Business and Economics, Wilfrid Laurier University.

More from Retail Insider:

*This article originally appeared in The Conversation.

Pet Valu describes 2024 as a ‘dynamic year’

By
Mario Toneguzzi
-
Source- Pet Valu
Source- Pet Valu

Pet Valu Holdings Ltd., the leading Canadian specialty retailer of pet food and pet-related supplies, has announced its financial results for the fourth quarter and fiscal year ended December 28, 2024, describing it as a “dynamic year.”

For the year, system-wide sales were $1.452 billion, an increase of 2.3% versus the prior year but same-store sales declined was 0.5%. Revenue was $1.097 billion, up 3.9% versus the prior year.

Richard Maltsbarger
Richard Maltsbarger

“We closed out a dynamic year with strong operational execution, together with favourable revenue and profit results in the fourth quarter,” said Richard Maltsbarger, Chief Executive Officer of Pet Valu.

“These outcomes were supported by our fully operational GTA and Surrey distribution centres, improved online capabilities, highly relevant promotional cadence and solid cost management across our teams.

“2025 will be another exciting year, as we complete our supply chain transformation and deploy improved promotions and pricing tools to enable a return to same-store sales and profit growth as we progress through the year.”

Full financial results can be found here.

In the fourth quarter, system-wide sales were $388.1 million, an increase of 2.4% versus Q4 2023. Same-store sales decline was 0.2%. Revenue was $295.1 million, up 2.9% versus Q4 2023. Adjusted EBITDA was $68.2 million, down 4.3% versus Q4 2023, representing 23.1% of revenue. Operating income was $47.9 million, down 0.8% versus Q4 2023. Net income was $28.9 million, up from $28.8 million in Q4 2023.

For the year, Adjusted EBITDA was $247.1 million, up 6.9% versus the prior year, representing 22.5% of revenue. Operating income was $155.3 million, down 3.4% versus the prior year. Net income was $87.4 million, down from $89.5 million in the prior year.

For 2025, Pet Valu said it expects revenue between $1.17 and $1.20 billion, and Adjusted EBITDA between $254 and $260 million.

Pet Valu is Canada’s leading retailer of pet food and pet-related supplies with over 800 corporate-owned or franchised locations across the country. It has been in business for more than 45 years and offers more than 10,000 products, including a broad assortment of premium, super premium, holistic and award-winning proprietary brands. The company is headquartered in Markham, Ontario.

Canadian business leaders resilient in face of U.S. tariffs: KPMG

By
Mario Toneguzzi
-
Photo by Tima Miroshnichenko
Photo by Tima Miroshnichenko

Canadian business leaders remain steadfastly united in fighting U.S. tariffs with two-thirds (67 per cent) saying they can weather a trade war that lasts more than a year, finds a new survey by KPMG in Canada taken last week. Over eight in 10 (86 per cent) continue to support retaliatory tariffs against the U.S. – the same sentiment held a month ago when KPMG first surveyed corporate Canada on their tariff response.

The uncertainty around U.S. trade policy has had Canadian companies rushing to find ways to mitigate their risk and tariff-proof their organization. While it varies by company and industry, mitigation strategies include identifying areas to optimize and streamline operations, forming partnerships to open up new markets, diversifying supply chains, divesting non-core activities, exploring foreign-exchange hedging opportunities, incorporating tariff and transfer pricing plans, seeking exemptions, and securing subsidies or taking advantage of tax incentives, said KPMG. 

Timothy Prince
Timothy Prince

“The business community remains unwavering in its commitment to stand up for Canada,” said Timothy Prince, the Canadian Managing Partner for Clients and Markets, KPMG in Canada. “The size of the tariffs and the length of time tariffs remain in place will impact their ability to weather the coming storm. Already the uncertainty is prompting companies to examine every facet of their business to understand their options, with three-quarters already undertaking a strategic review of their operations.”

“While they will do what they must to ride this out, they expect governments to take bold action to eliminate interprovincial barriers, build a national energy-agnostic corridor, reduce red tape, and revamp the tax system to improve their ability to compete. As many as 86 per cent say it’s time to diversify energy export markets with increased pipelines and infrastructure in Western and Eastern Canada, and reduce our reliance on having to move oil and gas to Eastern Canada through the U.S.”

Full survey results can be found here.

Nearly nine in 10 (88 per cent) want “strong and determined” political will at all levels of government to finally open up trade within Canada. As many as 84 per cent say the elimination of interprovincial barriers will be “extremely or very important” to the survival of their business in a trade war with the U.S. and want the barriers removed as quickly as possible. Almost a third (31 per cent) say they could redirect 11-to-25 per cent of their sales to markets in Canada, said the KPMG report.

Tammy Brown
Tammy Brown

“It’s imperative that companies future-proof their operations, take a hard look at their supply chains to find key concentration risks and vulnerabilities, evaluate how tariffs will impact their costs, cash flow, and liquidity and how much they’re able to absorb or pass on to their customers,” said Tammy Brown, National Industry Leader for Industrial Markets, KPMG in Canada. “We are working with our clients to develop scenario plans to map potential trade policy changes and impacts on their organizations. This will help build resiliency and flexibility in their supply chains to react quickly and effectively as the landscape changes. And while many were already focused on optimizing their operations, this trade uncertainty has created a new sense of urgency.”  

KINTON RAMEN partners with University of Guelph

By
Mario Toneguzzi
-

KINTON RAMEN Guelph has launched a new partnership with the University of Guelph’s Hospitality Services, becoming an official off-campus meal plan partner. This collaboration allows University of Guelph students to use their Meal Plan Cards at the restaurant, enhancing dining options for those looking to enjoy high-quality meals off-campus.

This agreement aims to offer students a more convenient and flexible dining experience, providing access to an expanded selection of off-campus eateries that accept the University’s meal plan, said the company.

Alan De Luna, Senior Marketing Manager, Kinka Family
Alan De Luna, Senior Marketing Manager, Kinka Family

“We’re excited to partner with the University of Guelph to offer students a top-tier dining experience off-campus,” said Alan De Luna, Senior Marketing Manager at KINKA FAMILY. “This collaboration also enhances convenience, allowing students with meal plans to enjoy high-quality meals without needing cash or debit cards.”

As part of the partnership, the restaurant joins an exclusive group of local off-campus restaurants now accepting University of Guelph meal plans, further enhancing the dining options available to students.

Founded in May 2012, KINTON RAMEN was one of Toronto’s first Japanese ramen restaurants. Led by Executive Chef Aki Urata, the restaurant strives to deliver an extraordinary dining experience with exceptional ramen bowls made from the freshest ingredients.

KINKA FAMILY, established in 2009, is Canada’s largest Japanese restaurant group. Known for its mission of “Serving People Happiness,” KINKA FAMILY operates a diverse portfolio of restaurants and cafés in Toronto, Montreal, Vancouver, Chicago, and New York. Their notable establishments include KINKA IZAKAYA, KINTON RAMEN, and JaBistro.

Related Retail Insider stories:

Canadian consumer insolvencies rise by 20.5% in January amid financial pressures

By
Mario Toneguzzi
-
Photo by Liza Summer
Photo by Liza Summer

Consumer insolvencies in Canada saw a significant spike in January 2025, with filings increasing by 20.5% compared to December 2024, according to the Office of the Superintendent of Bankruptcy (OSB). A total of 11,196 consumer insolvencies were filed, which is 1,904 more than the previous month, averaging around 361 filings per day. This represents a 3.8% increase from January 2024 and a 12.3% rise from pre-pandemic levels in January 2019.

The Canadian Association of Insolvency and Restructuring Professionals (CAIRP) highlighted the role that ongoing financial stress, including the high cost of living and escalating household debt, continues to play in driving up consumer insolvencies. The association stressed the need for stronger debt literacy to help Canadians better manage their financial obligations.

André Bolduc
André Bolduc

André Bolduc, Licensed Insolvency Trustee and Chair of CAIRP said the potential impact of looming U.S. tariffs may further strain financially vulnerable Canadians, making it even more difficult for them to manage their debts.

“Higher costs for goods and services, combined with existing financial pressures, could push more individuals towards needing debt-relief solutions,” he explained.

Looking at the 12-month period ending January 31, 2025, consumer insolvencies saw a 9.9% increase from the previous year. Notably, New Brunswick experienced the largest year-over-year increase, with insolvencies rising by 9.8%, while Quebec saw a 9.2% increase.

Among insolvency filings, consumer proposals have become increasingly popular. In the 12-month period ending January 31, 2025, consumer proposals accounted for 78.9% of all insolvency filings, while bankruptcies made up 21.1%. Consumer proposals are often seen as a more flexible solution compared to bankruptcy, offering repayment plans of up to 60 months, no ongoing income reporting, and greater stability without the risk of payment increases.

“Unlike bankruptcy, a consumer proposal often offers a more flexible repayment plan of up to 60 months instead of nine to 36 months, no ongoing income reporting, and removes uncertainty and the risk of payment increases,” Bolduc noted. “Additionally, those who have previously filed a bankruptcy often prefer to avoid going through the bankruptcy process again, particularly given the uncertainty of what the terms of their discharge from another bankruptcy might be.”

Bolduc added that consumer proposals allow debtors to retain assets such as their homes and are increasingly being negotiated with more tailored, manageable terms by creditors. Many Canadians see consumer proposals as a more dignified option for regaining financial stability without the perceived stigma of bankruptcy.

Business Insolvencies Rise 7.6% in January 2025

Business insolvencies in Canada also saw an increase in January 2025, rising by 7.6% compared to December 2024, with 424 filings recorded. This marks a 45.2% rise from pre-pandemic levels in January 2019. The 12-month period ending January 31, 2025, saw a 11.7% increase in business insolvencies compared to the same period the previous year.

The sectors most affected by the rise in business insolvencies included accommodation and food services, professional, scientific, and technical services, and arts, entertainment, and recreation. The accommodation and food services sector accounted for the largest share of insolvencies in January, with 14.1% of the total filings.

As Canadians continue to face financial challenges, the increase in both consumer and business insolvencies signals the continued strain on the country’s economy, underscoring the need for accessible and effective debt-relief solutions.

Canadian Retail News From Around The Web For March 4, 2025

By
Retail Insider
-
Canadian Retail News From Around The Web

News at a Glance

Retail Insider is streamlining its Canadian retail news from around the web to include a handful of top news stories that can be viewed quickly during the day. Here are the top stories from the past 24 hours.

Trump tariffs could mean secondhand clothing will cost more, fewer vintage pieces coming into Canada (CityNews)

Majority of shoppers confused by what it means to “buy Canadian” (Financial Post)

23 Alarming Trends Showing How Canada’s Food Supply Is Being Impacted by U.S. Tariffs (MSN)

No deal between Canada Post and union during mediated weekend talks (CBC)

I thought being Canadian was good enough to sell my books in Canada. I was wrong (Globe & Mail)

Loblaw’s Per Bank calls tariffs “wrong-headed” (Grocery Business)

7-Elevens in Winnipeg losing $500 daily to theft, says police board chair (CTV)

Toronto’s ‘ludicrous’ shopping laws in the spotlight as city studies possible stat holiday openings (Toronto Star)

Kettlemans Bagel plans to expand further in Ottawa, hold off on entering U.S. market (Ottawa Business Journal)

Vancouver coffee bar and equipment store announces closure (Daily Hive)

Tariffs represent ‘alarming situation,’ says owner of grocery store not far from border with Canada (Yahoo)

These are the big brands that actually make Costco’s Kirkland products in Canada (MSN)

New video shows moments after North York store was targeted in smash-and-grab (CTV)

U.S. Delays De Minimis Exemption Removal for Canada & Mexico

By
Anita Mehra
-
Canada-US trade war - tariffs and de minimus. Image: iStock/licensed

The U.S. government has announced a temporary reprieve for imports from Canada and Mexico, as the planned removal of the de minimis exemption for low-value shipments remains on hold. The exemption, which allows imports valued under $800 to enter the U.S. duty-free, was initially set to end as part of new tariff measures set to take effect on Tuesday. However, a last-minute amendment by President Donald Trump has granted an extension until adequate systems are established for efficient tariff revenue collection.

The delay comes as a relief to e-commerce retailers and businesses that rely on seamless cross-border trade. The exemption enables many small-value goods from Canada and Mexico to avoid tariffs, reducing costs for consumers and businesses alike. Had the exemption been removed as planned, U.S. companies importing lower-cost goods from their top two trading partners would have faced new financial burdens.

Trump’s amendments to the tariff orders clarify that the duty-free de minimis treatment will remain in place until the U.S. Commerce Secretary determines that the necessary revenue processing and collection infrastructure is adequately operational. Once these requirements are met, the exemption will be eliminated for Canada and Mexico, further tightening trade regulations.

The handling of de minimis for Canada and Mexico aligns with the U.S. approach to tariffs on Chinese imports. In February, the exemption for Chinese goods was briefly revoked when the U.S. imposed an additional 10% tariff on imports from China. However, the exemption was later reinstated, citing the need for an effective tariff collection system. The similarities in approach indicate that while the exemption remains for now, it is only a matter of time before Canada and Mexico face stricter import duties.

What This Means for Businesses

For cross-border e-commerce businesses, the temporary extension provides a short-term cushion. However, trade experts caution that importers must begin strategizing for the inevitable removal of the exemption. The continued uncertainty surrounding trade policies highlights the need for companies to explore alternative supply chain solutions and risk-mitigation strategies.

“Businesses should not assume that the exemption will remain in place indefinitely,” said a trade policy analyst. “The U.S. administration has been clear about its intent to tighten import regulations, and it is only delaying implementation until the necessary systems are in place.”

For Canadian and Mexican exporters, the delay means they can continue sending lower-value goods to the U.S. without additional duties. However, once the exemption is removed, these businesses could see a decline in competitiveness due to increased costs. The change is expected to disproportionately affect small and medium-sized enterprises (SMEs) that rely on the U.S. market for growth.

Uncertain Trade Landscape Ahead

While the de minimis exemption remains intact for now, its long-term future is highly uncertain. With tariffs on Canadian and Mexican imports set to proceed, businesses must stay informed about evolving trade policies and prepare for potential cost increases. Companies engaged in cross-border trade should closely monitor policy updates and assess how potential tariff changes may impact their operations.

More from Retail Insider:

Ontario Could Mandate Made in Canada Labels Amid US Tariffs

By
Maya Johnson
-
Ontario Premier Doug Ford

As tensions escalate between Canada and the United States over impending tariffs, Ontario Premier Doug Ford has announced that his government may introduce legislation requiring retailers to display clear signage indicating whether a product is Canadian-made. This move comes in response to U.S. President Donald Trump’s threat to impose a 25% tariff on most Canadian and Mexican goods, set to take effect as soon as Tuesday.

Speaking at a press conference on Monday, Ford emphasized the importance of supporting Canadian-made products and ensuring consumers can make informed choices.

“I am asking politely before I implement it,” Ford stated. “Every retail store, when you go look at the shelf talker and it has the price, we need to see a Canadian flag on that price. Please work with us, or we are going to legislate it.”

If implemented, the regulation would compel retailers to prominently label products made in Canada, potentially influencing consumer spending habits amid growing trade tensions.

Retaliatory Measures Against U.S. Businesses

Beyond the proposed retail signage mandate, Ford outlined a series of retaliatory measures Ontario will take should the U.S. tariffs be enacted. Among them is the removal of U.S. alcohol products from Liquor Control Board of Ontario (LCBO) shelves. Additionally, the province plans to terminate a $100 million contract with Elon Musk’s Starlink, which was intended to provide satellite internet service to Northern Ontario.

While acknowledging that this move may have little financial impact on Musk, the world’s richest individual, Ford said the decision is a matter of principle.

“It won’t make a difference for Elon Musk, but it is about principle,” he said.

Ontario’s $30 Billion Procurement Strategy

Ford also reaffirmed his commitment to ensuring that U.S. companies do not benefit from Ontario’s substantial government procurement budget, which amounts to approximately $30 billion annually.

“That $30 billion doesn’t even include the municipalities, and I know all 444 municipalities are on board,” Ford noted. “We are going to make sure that we legislate that you are buying Ontario first and Canada second.”

While Ford acknowledged that some products cannot be sourced domestically, he stressed that shifting procurement preferences away from U.S. suppliers could have significant repercussions south of the border.

“If they want to go after our families, take food off our tables, and try to close our companies… well, we are going to fight like we’ve never fought before to protect Canada and to protect the people of Ontario and their businesses, communities, and jobs,” he declared.

Federal Government’s Response to Tariffs

If the U.S. moves forward with its 25% tariffs, the Canadian federal government has stated that it will respond with retaliatory tariffs on $30 billion worth of U.S. goods, followed by additional tariffs on $125 billion in goods within three weeks.

Ford voiced his full support for the federal government’s “dollar-for-dollar” approach to tariffs, emphasizing Ontario’s willingness to stand firm in the escalating trade dispute.

“I didn’t start a tariff war, but we are going to win this tariff war,” Ford said.

Potential Impact on Ontario’s Economy

Economists and business leaders have warned that the proposed tariffs could have devastating effects on Ontario’s economy, particularly given the province’s close trade ties with the U.S. Ford himself has previously stated that such tariffs could lead to the loss of up to 500,000 jobs in Ontario.

The proposed measures, including mandatory retail signage and a shift in government procurement policies, signal Ontario’s determination to push back against what it sees as an aggressive economic threat from its largest trading partner. As the situation develops, businesses and consumers alike will be watching closely to see how this trade standoff unfolds.

More from Retail Insider:

1...412413414...1,346Page 413 of 1,346