Canada suspends trade talks, retailers rethink sourcing, de minimis exemption ends

Ian Sinclair

Ian Sinclair

EVP, Commercial Solutions

ian.sinclair@nls.ca

National Logistics Services
150 Courtneypark Drive West
Mississauga, Ontario

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Recently in Logistics; Trade uncertainty continues to reshape Canada–US commerce, with stalled negotiations, new counter-tariffs, and changes to de minimis rules adding pressure to cross-border trade. Businesses are responding by simplifying international operations and adapting their supply chains to a more complex trade environment. Meanwhile, technology continues to reshape retail, from Shopify’s expanding cross-border capabilities to AI changing how retail roles evolve.

Canada has suspended trade negotiations with the US, citing last-minute changes to proposed terms and concerns about reaching a reliable agreement. Prime Minister Mark Carney said Canada will respond dollar-for-dollar to a planned 50% US tariff on roughly $28 billion in Canadian goods. The government will also expand support for affected businesses and workers while accelerating efforts to strengthen Canada’s domestic economy and diversify international trade.

Source: Inside Logistics

New Canadian counter-tariffs on US-origin goods are creating added cost and sourcing pressures for retailers across a range of categories. Retailers are assessing alternative suppliers, domestic sourcing, pricing changes, and tariff-remission options as they prepare for the measures to take effect September 8. The latest trade dispute could accelerate longer-term efforts to diversify supply chains and reduce reliance on U.S. suppliers.

Source: Retail Insider

A US trade court has upheld the Trump administration’s decision to eliminate the de minimis exemption, which previously allowed imports under $800 to enter duty- and tax-free. The ruling confirms the president’s authority to rescind the exemption, meaning low-value imports will remain subject to applicable duties. The decision reinforces higher import costs for e-commerce businesses that relied on de minimis to ship lower-value goods into the US

Source: Supply Chain Dive

Shopify is expanding its Managed Markets platform to eligible Canadian merchants, helping simplify international sales by managing duties, taxes, customs, currencies, and other cross-border requirements. The expansion comes as Canadian retailers face greater complexity when selling internationally, particularly into the US following changes to de minimis treatment. By reducing the infrastructure required for cross-border commerce, the platform could make international expansion more accessible to Canadian brands.

Source: Retail Insider

A ServiceNow report projects Canadian retail employment will remain largely stable through 2031, with AI expected to reshape roles rather than eliminate significant numbers of jobs. As automation takes over routine tasks such as cashiering and cash handling, demand is expected to grow for technical, analytical, leadership, and collaboration skills. The shift highlights the need for retailers to reskill existing employees and embed continuous learning into everyday work as AI becomes more integrated into retail operations.

Source: Retail Insider

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NLS Logistics Team Communications
As a leading Third Party Logistics (3PL) firm, we have the strategic infrastructure, technology relationships, and insights to help Canadian and international brands reach and serve the Canadian market
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US tariff threats put Canada trade talks at risk, exporters face pressure, and supply chains diversify
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