Politics
Businesses seeing drop in US customers during holiday season amid tariffs – National TenX News
At Fleece & Harmony, a woolen mill and yarn shop in bucolic Belfast, Prince Edward Island, owner Kim Doherty used to be able to send yarn skeins to U.S. customers across the border with little fanfare.
The yarn orders usually met an import tax exemption for packages valued at under $800, meaning it could be imported tariff-free and avoid the customs process.
But ever since the Trump administration eliminated the exemption as of Aug. 29, the cost to send yarn to U.S. customers has skyrocketed.
The bill for a US$21 ball of yarn now includes $12 to $15 in brokerage fees that her shipper UPS charges, plus state taxes and a 6.5 per cent tariff, all of which almost doubles her costs.
“We had orders that have reached the customers and they’re in shock about the fact that they have to pay,” she said. “And it’s amazing how many people really didn’t know what the impact was going to be.”
Getting rid of the so-called de minimis exemption was meant to curb drug trafficking and stop low-quality goods from discount sellers like Temu and Shein flooding the U.S. market.
But as the all-important annual holiday shopping season kicks off, it is putting a crimp on small businesses and shoppers now facing higher costs.
Chad Lundquist in Fort Lauderdale, Florida, ordered fragrance oil from a site called Oil Perfumery in October, but he didn’t 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.
“It wasn’t worth the $10 tariff for a $27 purchase,” Lundquist said. Oil Perfumery did not respond to a request for comment.
He’s not the only skittish shopper.
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.
Martha 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 — her main e-commerce channel in addition to her own website — 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’s paying the import taxes and customs fees herself so customers aren’t impacted. Sales are down about 30 per cent year-over-year.
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“The 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,” Keith said.
She’s also in a bind because she sold a £109 ($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 £5750 ($7590) to cover shipping the advent calendars already sold.
“The 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,” she said.
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.
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, “inventory wasn’t moving as expected, and we suspected customers were hesitant to purchase due to potential duty charges,” Bacarro said.
Sales — 70 per cent of which come from Americans — finally started to rebound when Digi Wildflowers prominently added a banner on its site that said, “U.S. Import Duties On Us.”
“Heading into this holiday season, we’re keeping that message front and center through banners, social media, and direct communication,” said Bacarro, who is also expanding their product line.
But not all businesses can — or want to — pick up the tariff tab.
Kim Doherty, who runs the woolen mill on Prince Edward Island, doesn’t plan to pay the tariff and fees for her customers.
“I’m not in a position as a small business owner to do that. The profit margins are already rather thin,” said Doherty, adding that “on principle,” she shouldn’t have to do it.
Right now, her shipments to U.S. customers are about 10 per cent of what they were. Instead, she’s working on expanding her fiber offerings to Canadian customers at her brick-and-mortar store and fiber festivals.
“We’ll see what happens,” she said. “I’m pretty sure that my U.S. customers were shopping and not even thinking about it, but now they’ll be evaluating the purchases that they’re making, knowing that they are going to have the extra fees on top of whatever they see.”
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.
Selene Pierangelini’s 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.
She temporarily switched to FedEx and UPS — 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.
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.
“You don’t 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,” she said.
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’re around 35 per cent. She’s hopeful people are just holding off until Black Friday and Cyber Monday holiday sales.
In the meantime, she has restarted sales to Europe, which she had paused in 2024 due to increased regulations. And she’s launched a Facebook marketing campaign and is exploring print-on-demand services from U.S.-based providers for production and fulfillment.
“This situation highlights how fragile small businesses can be when dependent on one market,” Pierangelini said. “While it has been a shock, it’s also pushed me to diversify — something that will hopefully make my business stronger and more resilient in the long run.”
The possibility of a forceful U.S. takeover of Greenland is raising many unprecedented questions — including how Canada, the European Union and NATO could respond or even retaliate against an ostensible ally.
A high-level meeting between Greenlandic, Danish and U.S. officials this week did not resolve the “fundamental disagreement” over the territory’s sovereignty but did set the stage for more talks. The White House made clear Thursday that U.S. President Donald Trump’s desire to control Greenland has not changed after the meeting.
“He wants the United States to acquire Greenland. He thinks it’s in our best national security to do that,” White House press secretary Karoline Leavitt said.
Denmark and European allies are sending more troops to the territory in a show of force and to display a commitment to Arctic security.
Experts say there are other, non-military measures available in the event of a U.S. annexation or invasion of Greenland, or which could at least be threatened to try and get Trump to back down.
Whether those economic measures are actually used is another matter, those experts say.
“I think it remains highly unlikely that we’ll get to that point where we have to seriously discuss consequences for a U.S. move on Greenland,” said Otto Svendsen, an associate fellow with the Europe, Russia, and Eurasia Program at the Center for Strategic and International Studies.
“So it remains contingency planning for a highly unlikely event. That being said … Denmark would certainly do everything in its power to rally a very robust European response.”
Here’s what that could entail.
EU trade, tech disruptions?
Experts agree the biggest pressure points that can be used in the U.S. surround trade and technology.
The European Parliament’s trade committee is currently debating whether to postpone implementing the trade deal signed between Trump and the EU last summer to protest the threats against Greenland, Reuters reported Wednesday.
Many lawmakers have complained that the deal is lopsided, with the EU required to cut most import duties while the U.S. sticks to a broad 15 per cent tariff for European goods.
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An even bolder move would be triggering the EU’s anti-coercion instrument — known as the “trade bazooka” — that would allow the bloc to hit non-member nations with tariffs, trade restrictions, foreign investment bans, and other penalties if that country is found to be using coercive economic measures.
Although the regulation defines coercion as “measures affecting trade and investment,” Svendsen said it could feasibly be used in a diplomatic or territorial dispute as well.
“EU lawyers have proven themselves to be very creative in recent years,” he said.
However, David Perry, president of the Canadian Global Affairs Institute, said in an email that economic measures against the U.S. are unlikely “given the massive asymmetry in the defence and economic relationship between the U.S.” and other western nations.
“Any kind of sanction against the U.S. doesn’t make sense for the same reason they can impose tariffs on others: they have the power,” Perry added.
Target U.S. tech companies?
The likeliest — and potentially least harmful — scenario for retaliation in the event of an attack on Greenland, Svendsen said, would be fines or bans against U.S. tech companies like Google, Meta and X operating in Europe.
That’s because the Trump administration has taken particular focus on preventing what they call “attacks” on American companies by foreign governments seeking to regulate their online content or tax their revenues, which has led to calls on Canada, Britain and the EU to repeal laws like digital services taxes.
“I think that would be a really smart and targeted way to get to economic interests very close to the president, while minimizing the direct impact on the on the European economy,” Svendsen said, calling such a move “low-hanging fruit.”
He also compared a future U.S. tech platform ban to how Europe moved to wean itself off Russian gas after the full-scale invasion of Ukraine in 2022.
“If you told anyone back then that Europe would basically rid itself of its dependence on Russian gas basically within a two-year period … that would have been considered completely impossible,” he said.
“Weaning the European economy off of U.S. tech would certainly be painful in the short term, but they’ve proven that they can get off those dependencies quickly if there is political will behind it in the past.”
A U.S. hostile takeover of Greenland would mean the “end” of the NATO alliance, experts and European leaders have said.
Trump himself has acknowledged it could be a “choice” between preserving the alliance or acquiring Greenland.
There is no provision within the NATO founding treaty that addresses the possibility of a NATO member taking territory from another, and how the alliance should respond to such an act.
A NATO spokesperson told Global News it wouldn’t “speculate on hypothetical scenarios” when asked how it could potentially act.
“None of this would be actionable in a NATO sense,” Perry said. “It’s an alliance that’s organized to bind the U.S. to European security, and revolves around the U.S. So there’s no scenario of NATO doing that to the U.S.”
Denmark and other European nations could move to reduce or close U.S. military bases in their countries as a possible response, experts say.
Balkan Devlen, a a senior fellow at the Macdonald-Laurier Institute and director of its Transatlantic Program, said in an interview that a U.S. annexation of Greenland would force Canada to focus entirely on boosting its defences in the Arctic.
That may include trying to decouple from NORAD, the joint northern defence network with the U.S., in favour of a purely domestic Arctic command, he said — although that process would take years and require Canada to increase defence spending even further.
“Never mind five per cent (of GDP) — we will probably need to go like seven, eight, nine per cent on defence spending to be able to do anything of that sort,” he said. “It’s not even clear that we’ll be able to have enough people to do that.”
Devlen added that any retaliatory action, whether military or financial, needs to be targeted and proportionate to what the U.S. does.
“The problem with nuclear options is that once you use it, it’s gone,” he said. “And if it doesn’t do the damage or make the change of behaviour on the other party, you’ve basically lost a lot of leverage and you might actually sustain a lot more loss yourself.”
A trip to the world’s most-visited museum is about to cost Canadians significantly more.
France has hiked ticket prices at the Louvre by 45 per cent for visitors from outside the European Union, a move that is fuelling debate over so-called dual pricing and the growing backlash against overtourism.
Starting this week, adult visitors from non-EU countries, including Canada, must pay €32 to enter the Paris landmark, up from €22. That’s an increase from about $35 to $52 Canadian.
Visitors from EU countries, as well as Iceland, Liechtenstein and Norway, will continue to pay the lower rate.
The price hike comes as the Louvre grapples with repeated labour strikes, a high-profile daylight jewel heist last October that prompted a costly security overhaul, and years of chronic overcrowding. The museum attracts roughly nine million visitors annually.
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Some Canadian tourists told Global News they feel unfairly targeted.
“We didn’t cause the robberies or some of the other issues that happened and we are paying the consequences,” said Allison Moore, visiting Paris from Newfoundland with her daughter. “[In] Canada we don’t discriminate over pricing like that.”
Others argue tourists already shoulder higher costs simply by travelling long distances.
“In general for tourists, I think things should be a little cheaper than for local people, because we have to travel to come all the way here,” said Darla Daniela Quiroz, another Canadian visitor. “It should be equal pricing, or a little bit cheaper.”
Even some Europeans question the two-tiered system. A French tourist interviewed outside the museum said there was “no reason” to charge non-Europeans more and that the fee should be the same for everyone.
Tourism experts say the Louvre’s financial pressures help explain the decision.
“The Louvre is really cash-strapped right now and needs to do something,” said Marion Joppe, a professor at the University of Guelph. “It can’t really look to the government, which is already struggling with its own budget.”
The move also reflects a broader global pushback against mass tourism. Anti-tourism protests have spread across parts of Spain, New Zealand has increased its entry tax, and the United States recently raised national park fees for foreign visitors.
“You take Paris — it gets about 50 million tourists a year,” said Julian Karaguesian, an economist at McGill University. “That’s roughly a million a week. The city simply wasn’t built for those kinds of numbers.”
Despite the higher price, many visitors say they will still line up to see the Mona Lisa and other of the museum’s famous artworks.
“It’s one of the main attractions. It’s on everybody’s list,” Moore said. “We’re still going to go, and hopefully it will be worth it in the end.”
© 2026 Global News, a division of Corus Entertainment Inc.
Politics
Trump calls Canada-China deal ‘good thing’ as U.S. officials voice concern – National TenX News
Canada’s new trade deal with China is getting a mixed reaction in Washington, with U.S. President Donald Trump voicing support as administration officials warned Ottawa could regret allowing Chinese EVs into the Canadian market.
The deal signed with Beijing on Friday reverses course on 100 per cent tariffs Canada slapped on Chinese electric vehicles in 2024, which aligned with similar U.S. duties. Canada and China also agreed to reduce tariffs on canola and other products.
Asked about the deal by reporters at the White House, Trump said Prime Minister Mark Carney was doing the right thing.
“That’s what he should be doing. It’s a good thing for him to sign a trade deal. If you can get a deal with China, you should do that,” Trump said.
However, members of Trump’s cabinet expressed concern.
“I think they’ll look back at this decision and surely regret it to bring Chinese cars into their market,” U.S. Transportation Secretary Sean Duffy said at an event with other U.S. government officials at a Ford factory in Ohio to tout efforts to make vehicles more affordable.
U.S. Trade Representative Jamieson Greer told reporters the limited number of vehicles would not impact American car companies exporting cars to Canada.
“I don’t expect that to disrupt American supply into Canada,” he said.
“Canada is so dependent on the United States for their GDP. Their entire population is crowded around our border for that reason. I’ll tell you one thing: if those cars are coming into Canada, they’re not coming here. That’s for sure.”
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Carney has said it’s necessary for Canada to improve trade ties and cooperation with China in light of Trump’s trade war and threats to let the Canada-U.S.-Mexico Agreement on free trade expire.
The trade pact is up for review this summer, and Greer reiterated that the Trump administration wants to bring more auto manufacturing back to the U.S. and incentivize companies to do so.
Under the new deal with Beijing, Carney said he expects China will lower tariffs on its canola seed by March 1 to a combined rate of about 15 per cent.
Greer questioned that agreement in a separate CNBC interview.
“I think in the long run, they’re not going to like having made that deal,” he said.
He called the decision to allow Chinese EVs into Canada “problematic” and added: “There’s a reason why we don’t sell a lot of Chinese cars in the United States. It’s because we have tariffs to protect American auto workers and Americans from those vehicles.”
Greer said rules adopted last January on vehicles that are connected to the internet and navigation systems are a significant impediment to Chinese vehicles in the U.S. market.
“I think it would be hard for them to operate here,” Greer said. “There are rules and regulations in place in America about the cybersecurity of our vehicles and the systems that go into those, so I think it might be hard for the Chinese to comply with those kind of rules.”
Trump and officials like Greer have taken aim at Chinese attempts to enter the North American car market through Mexico by bypassing rules of origin under CUSMA.
The CUSMA review set for July is expected to address those loopholes that American and Canadian officials have said are being exploited by China.
Those concerns, which were also raised by the Biden administration, in part helped spur the steep tariffs on Chinese EVs, which are heavily subsidized by Beijing.
Trump, however, has also said he would like Chinese automakers to come to the United States to build vehicles.
Both Democrat and Republican lawmakers in the U.S. have expressed strong opposition to Chinese vehicles as major U.S. automakers warn China poses a threat to the U.S. auto sector.
Ohio Senator Bernie Moreno, a Republican, said at Friday’s event at the Ford plant that he was opposed to Chinese vehicles coming into the United States, and drew applause from the other government officials.
“As long as I have air in my body, there will not be Chinese vehicles sold the United States of America — period,” Moreno said.
—with files from Reuters
© 2026 Global News, a division of Corus Entertainment Inc.
How could Canada, EU, NATO respond to a U.S. takeover of Greenland? – National TenX News
Louvre raises ticket prices for non-Europeans, hitting Canadian visitors TenX News
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