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Businesses are rerouting shipments to Canada

2 days ago
https://www.theglobeandmail.com/investing/personal-finance/article-businesses-are-rushing-to-reroute-goods-to-canada-in-a-move-that-might/
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  • #trade war
  • #tariffs
  • #supply chain
  • Businesses are rerouting U.S.-bound shipments from China to Canada to avoid high tariffs amid the trade war.
  • Flexport reported a 50% spike in shipments from China to Canada in mid-April.
  • Companies are storing goods in Canadian bonded warehouses to defer duty payments, hoping for tariff rollbacks.
  • Experts warn of potential market flooding, increased competition for warehouse space, and threats to Canadian manufacturers.
  • Storage costs could outweigh tariff savings, with some estimates at $200-$250 per container daily.
  • Limited bonded warehouse capacity in Canada may not sustain the influx long-term.
  • Seasonal items like apparel may lose value if tariffs persist, forcing discounted sales in Canada.
  • Trade war resolution could lead to a surge in shipments, spiking international shipping costs.
  • Some products destined for the U.S. may not be suitable for the Canadian market, leading to potential waste.
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