Canadian retailers worry as Trump pushes for higher cap on duty-free goods
Donald Trump may have unwittingly resurrected an issue that has been hotly contested for years in Canada’s retail industry when he unveiled his list of objectives for the upcoming NAFTA renegotiations.
The White House is demanding Canada raise the value of goods American stores can send to Canada without having to pay taxes or duties. That threshold currently sits at C$20, but the U.S. wants that limit hiked to about US$800 — a move some retailers north of the border fear would spell disaster for their businesses.
“It would be a catastrophe for retail in this country,” Larry Rosen, CEO of Harry Rosen, said in an interview Tuesday.
“There isn’t going to be a person in the country that isn’t going to take all their business to online U.S. retailers.”