These are interesting times for artists who have a small business in Canada (and other countries) You will probably already know that tariff wars have been ongoing between Canada and US. How might this impact you as an artist or maker?
*“What is the de minimis rule?
The little-known tax exemption has been in place in the U.S. since 1938, when U.S. Congress agreed to waive duties and fees in small-value goods where it’s not worth the time and expense to collect. In 1938, this was on goods worth $1 or less, but rose steadily to its current $800, set in 2015.”
There have been some recent additional changes announced. From 29th August the $800 ‘de minimis’ rule will be scrapped and now every package entering the US will be subject to tariff fees. For the next several months, while a new system of some kind is implemented, additional fees may also be charged. This could mean a customer is faced with a hefty customs bill before they can receive their order. This is something I have no control over! As you know my prices have been kept accessible over time in order to make my art available to you. I don’t wish to hike my prices in order to make this work -One way or another the consumer is affected ! (Canadian postage is already quite dear - so I can't imagine passing on any more costs to my patrons!)
Having carefully considered this and looked for further information, I have decided to suspend all sales and shipping to the US from 13th August/25 . I do not want packages to be delayed, charged additional fees etc. - extra costs to be absorbed by my patrons!.
This is a very difficult decision for me, as I have many wonderful US art collectors, people who have become friends and supported my business over time - I appreciate their interest in my artwork so very much. This is going to be tough for me, financially and personally. If this arrangement should change I will let you know - and make adjustments if it seems that we can work together again ! (WE know that sometimes these threats might be reversed by Trump in the final hour.) Otherwise I believe this news could be catastrophic for small business artists -and their customers . It’s unclear whether the Canadian will impose a reciprocal tariff of some sort at this time..
As I rely on Canada Post to be my delivery agent they are also on the cusp of impending strike action -a further impact on my ability to ship my art. Their ever rising costs to mail packages have not been conducive to keeping costs low either.
It makes me aware that I need to find other ways and means of reaching my supporters and patrons and extend my international service and national exposure.
Some things I have considered :
building on my presence and art offerings on Substack
-Revising online art workshops and offering new videos
-Building stronger communities on one other platform (such as Youtube)
-making art and instructional e-books
and perhaps zines that can be printed
Offering digital images to print at home
revisiting in person workshops,
facilitating artist getaways
building on my local gallery presence / larger works of art
These are loose ideas and concepts at present but this news of how tariff changes can impact my business (and yours!) in a heartbeat gives pause for thought.
I'm happy to hear your thoughts and how you might respond or be impacted by this new ruling.
Cheers Heather
*from the Vancouver Sun article by CHChan -see link above
At this time 99% of my buyers are USA based. Yet, I’m thinking along the same lines as you are. I appreciate your thoughts on this and I think we will all need a plan or several plans to make a living in these challenging times. I appreciate you sharing this with our community.
I’m glad you drew attention to this, Heather. I will also be suspending US shipping. I really appreciate you sharing all the new possibilities you’ve mentioned though. Great ideas!