Over 85% of Canadians are shifting spending habits, favouring local products to offset tariff pressures. The FDA now requires all imports under $800 to pass customs review, tightening low-value exemptions. Ground delivery rates jumped 32% above 2018 levels as major carriers adjust pricing. Luxury brands face challenges from overdependence on low-spending aspirationals. With DTC sales up 10–25% this year, retailers are rethinking peak season strategies to stay competitive.
Canadians Reprioritize Spending Amid Tariffs
Over 85% of Canadians are adjusting their spending, with many choosing Canadian-made goods to avoid tariff-related price increases. The growing “Buy Canada” movement is reshaping how people shop, subscribe, and travel. With cross-border trips declining and domestic travel rising, these shifts reflect both cost-awareness and national pride.
Source: Retail Insider
FDA Tightens Oversight on All Low-Value Imports
All FDA-regulated imports under $800 must now undergo review at customs, ending previous exemptions for low-value goods. Entry Type 86 filings must include full FDA data to ensure safety and compliance. This shift, powered by new tech, aims to better monitor imports and reduce risk from unregulated products.
Source: Supply Chain Dive
Ground Shipping Costs Hit Record High
Ground delivery rates surged 32% above 2018 levels in Q2 2025 as FedEx and UPS raised surcharges and scaled back discounts. Shippers responded by shifting low-value packages to slower, economy services, increasing billed weights and overall costs. With new fees and fewer deals, businesses are seeking cost-effective alternatives to manage logistics.
Source: Supply Chain Dive
Luxury Brands Lose Ground by Chasing Aspirationals
As the luxury market faces a downturn, overreliance on low-spending aspirationals is proving costly for brands. Top-tier clients feel alienated by mass marketing, reduced product quality, and impersonal retail experiences. To stay competitive, brands must return to craftsmanship, personalization, and deeper emotional connections with high-value customers.
Source: The Robin Report
4 Ways to Strengthen DTC Ahead of Holiday Demand
With DTC sales rising 10–25% this year, retailers must adapt to stay competitive during peak season. Key strategies include adopting real-time inventory tracking, offering flexible delivery, using sustainable packaging, and optimizing orders with AI. Retailers who scale operations now will be better equipped for sustained growth.
Source: Retail Dive
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