Businesses are rushing to reroute shipments to Canada (1 Viewer)

[Mycroft]

in a move that might lead to cheaper goods, risks for business​

A growing number of businesses are rerouting U.S.-bound shipments from China to Canada to avoid crushing tariffs in hopes of a swift resolution to the escalating trade war. But the approach risks flooding the Canadian market with their discounted goods and raising competition for already scarce warehouse storage, according to some experts.​

​

Their strategy: storing goods in Canadian warehouses, including bonded storage facilities where imported items can be held without immediate payment of duties – all in hopes that the Trump administration rolls back tariffs as high as 145 per cent.​

​

“The cost to store goods in a bonded facility for that amount of time would typically outweigh the cost of the tariff, ” he said. “In some cases, they are more likely to sell into the Canadian market at a reduced price instead of store in a warehouse for an indeterminate amount of time waiting for tariffs to be reduced or eliminated.”​

​

If Mr. Trump doesn’t budge on his sweeping tariffs, many of the businesses storing inventory in Canada will be forced to sell it into the Canadian market at steep discounts.​

​

That might mean cheaper prices on some goods for consumers and other end-users. But Mr. Castelino warned that this influx of diverted product could pose a threat to Canadian manufacturers.​

​

“Among the reasons Trump would implement additional tariffs on foreign goods is that the goods were being sold at a price that threatened domestic production,” said Mr. Castelino. “When these goods are diverted to the Canadian market, that would then threaten Canadian production.”​

​

Businesses are rushing to reroute shipments to Canada in a move that might lead to cheaper goods, risks for business

Companies are hoarding inventories in Canada in hopes of swift end to punishing U.S. tariffs

www.theglobeandmail.com

This will not end well for Canada...especially when Trump gets around to working on disposing of the USMCA, which will start in mid-summer.

 

[Michael Cole]

“The cost to store goods in a bonded facility for that amount of time would typically outweigh the cost of the tariff, ” he said. “In some cases, they are more likely to sell into the Canadian market at a reduced price instead of store in a warehouse for an indeterminate amount of time waiting for tariffs to be reduced or eliminated.”

The article makes perfectly valid points, but everything hinges on time. The author contradicts himself here. "That amount of time" may be 30 days. It may be 30 months. We don't know what the Chinese manufacturers expect. If the tariffs do drag on, then the scenario plays out as described. Back to the drawing board. But if Trump folds, as he has so far, they're making a smart move. It's a risk, but I'm guessing Canadian consumers will gladly welcome cheaper goods. Canada can put a stop to this anytime they want. Whatever happens, it's Trump chaos. No reason for this whatsoever.

 

[Mycroft]

“The cost to store goods in a bonded facility for that amount of time would typically outweigh the cost of the tariff, ” he said. “In some cases, they are more likely to sell into the Canadian market at a reduced price instead of store in a warehouse for an indeterminate amount of time waiting for tariffs to be reduced or eliminated.”

The article makes perfectly valid points, but everything hinges on time. The author contradicts himself here. "That amount of time" may be 30 days. It may be 30 months. We don't know what the Chinese manufacturers expect. If the tariffs do drag on, then the scenario plays out as described. Back to the drawing board. But if Trump folds, as he has so far, they're making a smart move. It's a risk, but I'm guessing Canadian consumers will gladly welcome cheaper goods. Canada can put a stop to this anytime they want. Whatever happens, it's Trump chaos. No reason for this whatsoever.

I haven't seen Trump fold...at all.

 

[Michael Cole]

I haven't seen Trump fold...at all.

Take off the blinders.

Why the concern with Canadian markets? What exactly is the point of the OP?

 

[noonereal]

in a move that might lead to cheaper goods, risks for business​

A growing number of businesses are rerouting U.S.-bound shipments from China to Canada to avoid crushing tariffs in hopes of a swift resolution to the escalating trade war. But the approach risks flooding the Canadian market with their discounted goods and raising competition for already scarce warehouse storage, according to some experts.​

​

Their strategy: storing goods in Canadian warehouses, including bonded storage facilities where imported items can be held without immediate payment of duties – all in hopes that the Trump administration rolls back tariffs as high as 145 per cent.​

​

“The cost to store goods in a bonded facility for that amount of time would typically outweigh the cost of the tariff, ” he said. “In some cases, they are more likely to sell into the Canadian market at a reduced price instead of store in a warehouse for an indeterminate amount of time waiting for tariffs to be reduced or eliminated.”​

​

If Mr. Trump doesn’t budge on his sweeping tariffs, many of the businesses storing inventory in Canada will be forced to sell it into the Canadian market at steep discounts.​

​

That might mean cheaper prices on some goods for consumers and other end-users. But Mr. Castelino warned that this influx of diverted product could pose a threat to Canadian manufacturers.​

​

“Among the reasons Trump would implement additional tariffs on foreign goods is that the goods were being sold at a price that threatened domestic production,” said Mr. Castelino. “When these goods are diverted to the Canadian market, that would then threaten Canadian production.”​

​

Businesses are rushing to reroute shipments to Canada in a move that might lead to cheaper goods, risks for business

Companies are hoarding inventories in Canada in hopes of swift end to punishing U.S. tariffs

www.theglobeandmail.com

This will not end well for Canada...especially when Trump gets around to working on disposing of the USMCA, which will start in mid-summer.

Seems these tariffs will be a big boost to the Canadian economy.

Trump is such an idiot.

 

[Mycroft]

Take off the blinders.

I don't wear blinders and my vision isn't clouded by anti-Trump bias.

Why the concern with Canadian markets? What exactly is the point of the OP?

I don't care about Canadian markets.

I'm just presenting something that importers are doing in response to Trump's tariffs.

 

[BirdinHand]

Others will be exporting items from China to another country, “adding” something cheap and simple and then sending them to the US, avoiding the tariff.

Businesses will find work arounds to the high tariffs

Trump knows it

 

[Threegoofs]

I haven't seen Trump fold...at all.

Another U-Turn: Trump reverses tariffs that caused market meltdown, but companies remain bewildered

Donald Trump suspended for 90 days import taxes he’d imposed barely 13 hours earlier on dozens of countries while escalating his trade war with China.

apnews.com

 

[Simon W. Moon]

I haven't seen Trump fold...at all.

: )

 

[Grand Mal]

in a move that might lead to cheaper goods, risks for business​

A growing number of businesses are rerouting U.S.-bound shipments from China to Canada to avoid crushing tariffs in hopes of a swift resolution to the escalating trade war. But the approach risks flooding the Canadian market with their discounted goods and raising competition for already scarce warehouse storage, according to some experts.​

​

Their strategy: storing goods in Canadian warehouses, including bonded storage facilities where imported items can be held without immediate payment of duties – all in hopes that the Trump administration rolls back tariffs as high as 145 per cent.​

​

“The cost to store goods in a bonded facility for that amount of time would typically outweigh the cost of the tariff, ” he said. “In some cases, they are more likely to sell into the Canadian market at a reduced price instead of store in a warehouse for an indeterminate amount of time waiting for tariffs to be reduced or eliminated.”​

​

If Mr. Trump doesn’t budge on his sweeping tariffs, many of the businesses storing inventory in Canada will be forced to sell it into the Canadian market at steep discounts.​

​

That might mean cheaper prices on some goods for consumers and other end-users. But Mr. Castelino warned that this influx of diverted product could pose a threat to Canadian manufacturers.​

​

“Among the reasons Trump would implement additional tariffs on foreign goods is that the goods were being sold at a price that threatened domestic production,” said Mr. Castelino. “When these goods are diverted to the Canadian market, that would then threaten Canadian production.”​

​

Businesses are rushing to reroute shipments to Canada in a move that might lead to cheaper goods, risks for business

Companies are hoarding inventories in Canada in hopes of swift end to punishing U.S. tariffs

www.theglobeandmail.com

This will not end well for Canada...especially when Trump gets around to working on disposing of the USMCA, which will start in mid-summer.

Warehouse storage? What century is this?

 

[Mycroft]

Another U-Turn: Trump reverses tariffs that caused market meltdown, but companies remain bewildered

Donald Trump suspended for 90 days import taxes he’d imposed barely 13 hours earlier on dozens of countries while escalating his trade war with China.

apnews.com

LOL!!

Sorry, but the AP is spinning.

Rejected.

 

[Michael Cole]

I don't wear blinders and my vision isn't clouded by anti-Trump bias.

Trump has folded several times already. Pauses, exemptions, maybe this, maybe that. Pull your head out of the sand.

I don't care about Canadian markets.

Then what is the purpose of the thread?

I'm just presenting something that importers are doing in response to Trump's tariffs.

Oh, like a news aggregator. Much obliged.

Since Canadian news is the topic, and hockey is Canadian, the Tahoe Knight Monsters swept the first round of the playoffs in the team's first year of existence.

They take on KC tomorrow in Round 2.

Mavericks playoff game Sunday against Tahoe to air on KSMO-TV

The Kansas City Mavericks moved on to the Second Round — the Mountain Division Finals — where they will take on the Tahoe Knight Monsters.

www.kctv5.com

Good luck with the thread.

 

[multivita-man]

I haven't seen Trump fold...at all.

But, what if Republican governors, Senators, and House Reps begin to fold and defect? I think that's the concern. Unless, of course, Trump wishes to declare another emergency and impose various forms of authoritarian rule. Then it wouldn't matter as much, I suppose.

 

[NOLA Dude]

Trump has folded several times already. Pauses, exemptions, maybe this, maybe that. Pull your head out of the sand.


Then what is the purpose of the thread?


Oh, like a news aggregator. Much obliged.

Since Canadian news is the topic, and hockey is Canadian, the Tahoe Knight Monsters swept the first round of the playoffs in the team's first year of existence.

They take on KC tomorrow in Round 2.

Mavericks playoff game Sunday against Tahoe to air on KSMO-TV

The Kansas City Mavericks moved on to the Second Round — the Mountain Division Finals — where they will take on the Tahoe Knight Monsters.

www.kctv5.com

Good luck with the thread.

Six Flags Announces Plans to Permanently Shut Down Theme Park After 25 Years

Theme Park company Six Flags Entertainment Corporation announced on May 1 that it plans to shut down the Six Flags America and Hurricane Harbor in Bowie, Md., at the end of the 2025 season.

people.com

 

[Mycroft]

But, what if Republican governors, Senators, and House Reps begin to fold and defect? I think that's the concern. Unless, of course, Trump wishes to declare another emergency and impose various forms of authoritarian rule. Then it wouldn't matter as much, I suppose.

???

LOL!!

What if...what if...what if...

What if the earth goes spinning off into the wastelands of outer space?

Jesus...

 

[Loulit01]

I haven't seen Trump fold...at all.

Trump pauses steeper tariffs for most countries, while hiking levies on China. What we know

President Donald Trump has launched tariff wars with almost all of America’s trading partners. And his track record of on-again, off-again new levies continued Wednesday with a 90-day pause for most nations targeted by the latest volley of import taxes.

apnews.com

 

[multivita-man]

???

LOL!!

What if...what if...what if...

What if the earth goes spinning off into the wastelands of outer space?

Jesus...

You don't think Republican governors and members of Congress bailing on him would be consequential?

 

[ElChupacabra]

I haven't seen Trump fold...at all.

"It's not a retreat, but a strategic withdrawal".

 

[Loulit01]

"It's not a retreat, but a strategic withdrawal".

We are advancing to the rear.

 

[ElChupacabra]

???

LOL!!

What if...what if...what if...

What if the earth goes spinning off into the wastelands of outer space?

Jesus...

That's a far less likely prospect than nations moving away from dealing with the US and finding better ways to untether from the US economy in order to avoid the uncertainty Donnie Boy seems to think works.

 

[Manc Skipper]

I haven't seen Trump fold...at all.

Take off the dark glasses indooors.

 

[ElChupacabra]

Take off the dark glasses indooors.

There is always that guy.

 

[trouble13]

“The cost to store goods in a bonded facility for that amount of time would typically outweigh the cost of the tariff, ” he said. “In some cases, they are more likely to sell into the Canadian market at a reduced price instead of store in a warehouse for an indeterminate amount of time waiting for tariffs to be reduced or eliminated.”

The article makes perfectly valid points, but everything hinges on time. The author contradicts himself here. "That amount of time" may be 30 days. It may be 30 months. We don't know what the Chinese manufacturers expect. If the tariffs do drag on, then the scenario plays out as described. Back to the drawing board. But if Trump folds, as he has so far, they're making a smart move. It's a risk, but I'm guessing Canadian consumers will gladly welcome cheaper goods. Canada can put a stop to this anytime they want. Whatever happens, it's Trump chaos. No reason for this whatsoever.

There's a very good reason for what Trump is doing.

 

[trouble13]

Others will be exporting items from China to another country, “adding” something cheap and simple and then sending them to the US, avoiding the tariff.

Businesses will find work arounds to the high tariffs

Trump knows it

He will raise tariffs higher on those countries.

 

[Mycroft]

That's a far less likely prospect than nations moving away from dealing with the US and finding better ways to untether from the US economy in order to avoid the uncertainty Donnie Boy seems to think works.

LOL!!

Didn't like the other guy's deflection, so you came up with your own.

Typical.