Small N.S. businesses resume shipping to U.S. — but at a price for American customers

Some small Nova Scotia businesses are once again retooling in the face of an evolving trade war between the U.S. and China, saying they will resume deliveries to American customers now that tariffs are being rolled back.

The move comes just about a week after the business owners halted shipments south of the border to avoid saddling customers with fees that, in some cases, amounted to more than the item purchased.

"We've definitely been keeping a close eye on things," said Cassy Collins, owner of Classy Cards Creative in Windsor, N.S.

The shop had briefly stopped shipments to the U.S. because many of the products it sells are manufactured in China and subject to tariffs. 

Chinese and U.S. officials announced on May 12 that they would slash most of their recent tariffs in a 90-day truce. China agreed to reduce its rate on American goods to 10 per cent, while the U.S. dropped its tariff rate on Chinese goods to 30 per cent.

'Nothing else we can really do'

Restarting shipments to the U.S., however, hasn't come without adjustments for both Collins and her customers — including price hikes.

She said the store has increased pricing for American customers by 30 per cent to cover the tariffs up front, meaning they won't be hit with an unexpected bill on their end once they get their deliveries.

"I'm sure it will still impact sales because we've raised prices by 30 per cent, but there's nothing else we can really do about that," Collins said.

"We're actually still losing a little bit of money doing it this way, but it's better being able to ship this way than not being able to ship it all."

The owner of The Curling Store in Dartmouth, N.S., Scott Bowers, had also stopped shipments to the U.S. last week. He's now trying to resume deliveries across the border.

Bowers said he wants to figure out a way to prevent shocking American customers with tariff costs on their end.

"I need the U.S. customer to know exactly what the price is, because what's happening is they're getting the package, they don't realize that there's all these duty fees and then they're like, 'Oh no, I'm not going to accept that,'" he said. "Then I got product that's out there that I can't really get back because it's too expensive."

Bowers previously said that like Classy Cards, most of the products he sells are made in China. Also like Classy Cards, Bowers said he's preparing to raise prices for American customers so he can cover those tariff costs ahead of the items being delivered.

Looking into other markets

He added that he's concerned about managing the growing market for curling supplies in the U.S., and moving forward, he may consider expanding into other international markets.

For Collins, right now the business will be taking things cautiously.

"Things are still in constant fluctuation. I'm not making any drastic changes to the business right now until there's going to be some more concrete rules and plans put into place," she said.