<\/p>\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t2:13<\/time>Carney begins talks on Canada-UAE trade deal that could cut tariffs<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\t\t<\/span>
Chad Lundquist in Fort Lauderdale, Florida, ordered fragrance oil from a site called Oil Perfumery in October, but he didn\u2019t realize the business was based in Toronto, Canada. His total was $35.75, which included an $8 standard shipping fee. But when his package arrived, he was hit with a $10.80 tariff bill from FedEx.<\/p>\n
\u201cIt wasn\u2019t worth the $10 tariff for a $27 purchase,\u201d Lundquist said. Oil Perfumery did not respond to a request for comment.<\/p>\n
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He\u2019s not the only skittish shopper.<\/p>\n
Three months after the exemption ended, sellers abroad are reporting drastic declines in U.S. sales. Some are paying the duties themselves instead of passing them to consumers. They are also trying to focus on domestic customers to replace U.S. ones and adjusting product lineups to feature best selling items to try to goose sales.<\/p>\n
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\n\t\t\tMore on Lifestyle<\/button>More videos<\/button>\n\t\t<\/p>\n<\/p><\/div>\nMartha Keith, founder of British stationery brand Martha Brook, which is based in London with a small office in Melbourne, Australia, said U.S. sales from her Etsy store \u2014 her main e-commerce channel in addition to her own website \u2014 were up 50 per cent for the year before the exemption ended. But sales fell dramatically when the tariffs hit, and continue to drop even though she\u2019s paying the import taxes and customs fees herself so customers aren\u2019t impacted. Sales are down about 30 per cent year-over-year.<\/p>\n
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\u201cThe issue seems to be in customer confidence hitting the desire to order from businesses outside of the U.S., because of confusion about how the tariffs will affect them,\u201d Keith said.<\/p>\n
She\u2019s also in a bind because she sold a \u00a3109 ($144) stationery advent calendar to about 344 U.S. customers ahead of the tariffs, and had to ship them under the tariffs. Shipping and tariffs cost her an additional \u00a35750 ($7590) to cover shipping the advent calendars already sold.<\/p>\n
\u201cThe whole thing has been a bit of a nightmare for businesses like ours, and such a huge shame, as the U.S. market was such a valuable growth area for us, particularly through Etsy,\u201d she said.<\/p>\n
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<\/p>\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t1:52<\/time>Trump removes tariffs on hundreds of food products ahead of U.S. Thanksgiving<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\t\t<\/span>
The timing was particularly bad for Sue Bacarro, who along with her sister co-owns Digi Wildflowers, an Etsy shop that sells embroidered baby blankets, gifts and custom quilts for wedding and anniversaries, located across the border from Detroit in Windsor, Ontario.<\/p>\n
Before the announcement of the removal of the de minimis exemption, they placed a large inventory order to prepare for the holiday season and early 2026 demand. But when the de minimis exemption ended, \u201cinventory wasn\u2019t moving as expected, and we suspected customers were hesitant to purchase due to potential duty charges,\u201d Bacarro said.<\/p>\n
Sales \u2014 70 per cent of which come from Americans \u2014 finally started to rebound when Digi Wildflowers prominently added a banner on its site that said, \u201cU.S. Import Duties On Us.\u201d<\/p>\n
\u201cHeading into this holiday season, we\u2019re keeping that message front and center through banners, social media, and direct communication,\u201d said Bacarro, who is also expanding their product line.<\/p>\n\n\n\t\tTrending Now<\/span>\n\t<\/p>\n\n\n\n\t\t\t\t\t\t
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But not all businesses can \u2014 or want to \u2014 pick up the tariff tab.<\/p>\n
Kim Doherty, who runs the woolen mill on Prince Edward Island, doesn\u2019t plan to pay the tariff and fees for her customers.<\/p>\n
\u201cI\u2019m not in a position as a small business owner to do that. The profit margins are already rather thin,\u201d said Doherty, adding that \u201con principle,\u201d she shouldn\u2019t have to do it.<\/p>\n
Right now, her shipments to U.S. customers are about 10 per cent of what they were. Instead, she\u2019s working on expanding her fiber offerings to Canadian customers at her brick-and-mortar store and fiber festivals.<\/p>\n
\u201cWe\u2019ll see what happens,\u201d she said. \u201cI\u2019m pretty sure that my U.S. customers were shopping and not even thinking about it, but now they\u2019ll be evaluating the purchases that they\u2019re making, knowing that they are going to have the extra fees on top of whatever they see.\u201d<\/p>\n
Some Etsy businesses have been stymied by international postal services temporarily halting deliveries to the U.S. because of the confusion around the ending of de minimis.<\/p>\n
Selene Pierangelini\u2019s business, Apricot Rain Creations, based in Brisbane, Australia, which sells crystals, candles, and spiritual wellness products on Etsy, depended on the Australia Post to get deliveries to U.S. customers. More than three-fourths of her customer base comes from the U.S. Australia Post suspended service to the U.S. for about a month, resuming on Sept. 22.<\/p>\n
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She temporarily switched to FedEx and UPS \u2014 private shippers that are more expensive than Australia Post. Since it resumed, Australia Post is working with Zonos, a provider of cross-border shipping technology, to offer a shipping calculator that lets her prepay duties and fees. They themselves charge a fee of $1.69 plus 10 per cent of the total duty fee.<\/p>\n
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<\/p>\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t2:14<\/time>Montreal business owner faces bankruptcy over de minimis tariffs<\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/p>\n\t\t\t\t\t\t<\/span>
So far, the items she ships from Australia have been tariffed at a 10 per cent rate, the baseline tariff for the country. She increased her shipping costs to help cover the expense. It is manageable, but tricky, she said.<\/p>\n
\u201cYou don\u2019t really know how much (the cost) is going to be until the package clears custom in the U.S., and you get an invoice which is automatically paid out of your account,\u201d she said.<\/p>\n
And her sales have not recovered. Before the tariffs, her U.S. sales were about 85 per cent of her total sales, and now they\u2019re around 35 per cent. She\u2019s hopeful people are just holding off until Black Friday and Cyber Monday holiday sales.<\/p>\n
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In the meantime, she has restarted sales to Europe, which she had paused in 2024 due to increased regulations. And she\u2019s launched a Facebook marketing campaign and is exploring print-on-demand services from U.S.-based providers for production and fulfillment.<\/p>\n
\u201cThis situation highlights how fragile small businesses can be when dependent on one market,\u201d Pierangelini said. \u201cWhile it has been a shock, it\u2019s also pushed me to diversify \u2014 something that will hopefully make my business stronger and more resilient in the long run.\u201d<\/p>\n<\/p><\/div>\n
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