Executive Briefings

Canada Drops Tariffs on Imported Baby Clothing, Some Sports Equipment

In a move that could have broad appeal for U.S. retailers, the Canadian government will no longer impose tariffs on imported baby clothes and selected sports equipment.

The tariff elimination comes in response to complaints from Canadian consumers about the high cost of consumer goods in Canada, especially when compared with identical items sold in the United States. Removal of the tariffs levels the playing field and presents an opportunity for U.S. businesses to take advantage of Canada's growing e-commerce market.

"Elimination of these tariffs, which added as much as 18 percent to the cost of baby clothes and sporting goods, is yet another reason why Canada holds so much potential for U.S. businesses," says John T. Costanzo, president of Purolator International, a provider of logistics and delivery services for shipments traveling between the two countries.

"Canada's favorable economic climate, strong dollar and pro-trade policies already provide many excellent incentives for U.S. businesses interested in joining the export ranks," Costanzo says.

Currently, more than $1.6bn in goods cross the border each day, and total trade for 2012 topped $600bn.

Internet sales, particularly purchases by Canadian consumers, have been a growing component of cross-border traffic. Canadian e-commerce is expected to enjoy a double-digit rate of growth through 2016, outpacing the growth rate in the United States. Canadian e-commerce sales exceeded U.S. $21.45bn last year, with sales expected to top $34.7billion by 2016. And, of particular interest to U.S. retailers, more than 60 percent of Canadian consumers say they have made online purchases from U.S. retailers.

Source: Purolator International

The tariff elimination comes in response to complaints from Canadian consumers about the high cost of consumer goods in Canada, especially when compared with identical items sold in the United States. Removal of the tariffs levels the playing field and presents an opportunity for U.S. businesses to take advantage of Canada's growing e-commerce market.

"Elimination of these tariffs, which added as much as 18 percent to the cost of baby clothes and sporting goods, is yet another reason why Canada holds so much potential for U.S. businesses," says John T. Costanzo, president of Purolator International, a provider of logistics and delivery services for shipments traveling between the two countries.

"Canada's favorable economic climate, strong dollar and pro-trade policies already provide many excellent incentives for U.S. businesses interested in joining the export ranks," Costanzo says.

Currently, more than $1.6bn in goods cross the border each day, and total trade for 2012 topped $600bn.

Internet sales, particularly purchases by Canadian consumers, have been a growing component of cross-border traffic. Canadian e-commerce is expected to enjoy a double-digit rate of growth through 2016, outpacing the growth rate in the United States. Canadian e-commerce sales exceeded U.S. $21.45bn last year, with sales expected to top $34.7billion by 2016. And, of particular interest to U.S. retailers, more than 60 percent of Canadian consumers say they have made online purchases from U.S. retailers.

Source: Purolator International