Click “Add to the cart” can soon come with an additional shock of stickers.
As tariff pressures force some sellers to China to increase their prices for US markets, some retail experts say that Canadians who buy online could feel the domain effects in everything, from electronics to socks.
This occurs when the president of the United States, Donald Trump, uploaded the duties of Chinese products to 145 percent this week, increasing bets in a commercial war that threatens to dump the global supply chains. In response, Beijing increased his tariffs on US imports to 125 percent on Friday.
Canada may have avoided a new round of tariffs, but that does not mean that we are not affected by the China-United States commercial war eventually, said Jean-François Ouellet, an associate professor of entrepreneurship and innovation at the Hacreal Business School that specializes in international marketing.
“Canada is often caught in crossfire,” Ouellet told CBC News.
- This Sunday, the Cross Country check is doing: what questions do you have about surviving the commercial war … and a possible recession? Leave your comment here And we can read it or call it for our program
This is due to the fact that many electronic commerce orders are fulfilled in Canadian sites, including Amazon.
“If those goods are made in China, and the United States give them new tariffs, the highest cost can happen to Canadian buyers, especially if the product crosses the US. UU. Before arriving in Canada.”
With Chinese products that face a rate of 104 percent of the US, some companies seek to adapt their supply chains to avoid higher costs, but others say that they do not face no choice but to pass the increase in prices to consumers.
Will Amazon prices upload?
It looks like this in the United States, at least.
The largest cross -border electronic commerce association said on Wednesday that many Chinese companies that sell products on Amazon are preparing to increase US prices or renounce the market due to tariffs.
The Amazon CEO, the Amazon CEO, Andy Jassy, told CNBC on Thursday that it is likely that its network of millions of third party vendors, many of which are in China or obtain their products from there, will have to pass the cost for consumers.
For Friday, it had already begun to happen. The Chinese electronics company Anker, which is one of Amazon’s largest vendors, raised prices in a fifth of its products on the US platform.
What about Amazon.CA?
It is less clear how this will affect Canadian consumers in Amazon.
Theoretically, the domain name does not necessarily correlate with storage and distribution, Li said. For example, you can buy products sent from other countries at Amazon.
“But in practice, most of the products I would see on Amazon.CA are stored in Canada, and prices already include any tariff,” he said.
So, if a customer orders from Amazon.
However, the goods that come through warehouses or distribution networks of the United States could “be beaten by the effects of the wave,” Ouellet added, of Montreal.
Could other shopping sites be affected?
Popular online shopping sites such as Temu, Shein and Walmart.CA could be affected by China-United States tariffs, Li and Ouellet said. Last year, for example, Chinese vendors represented 28 percent of all active vendors on the Walmart website, according to Marketplace Pulse, a company that collects data on electronic commerce companies.
A growing number of electronic commerce orders, especially platforms such as Temu, Shein or even third -party Amazon sellers, are sent directly from China to the client, Ouellet said.
While these shipments often avoid the rates of the United States, if Canada follows the leadership of the USA. Uu. Or increase inspections, duties or postal management rates, it could quickly affect prices or delivery times, he added.
“And if the US policy. UU. Interrupts global shipping lanes or creates uncertainty in the supply, even China’s direct dropship could become more expensive over time.”
Ok, but are Canadian shopping sites safe?
Many Canadian companies make articles in China. Aritzia, Lululemon and Canadian Tire, for example, manufacture some of their products abroad and sell them to the south of the border, although some are working to change production outside China.
If these goods are imported through the USA. Or if the raw materials are affected by tariffs, production costs may increase, said Ouellet, and added that larger companies may have more flexibility in their supply chains to adapt in the short term.
Lululemon and Aritzia also have distribution centers in Canada, said Roscoe, which allows them to avoid rates.
Are you looking to buy Canadian in response to the commercial war with the United States? Here is the difference between the goods labeled ‘Made in Canada’ and ‘Product of Canada’.
What items could increase more in the price?
Electronics (such as telephone numbers, accessories and appliances), clothing, footwear and home items is likely to be the hardest, Ouellet said.
“These are categories in which China has long been a dominant supplier, and many of these articles travel through US logistics centers before reaching Canadian consumers,” he said.
In principle, the assets that are imported to the United States to re -export to Canada should not be subject to US tariffs, Ouellet said, but in reality, the logistics of the real world is “messy” with a lot of margin of error.
“American customs agents are already overwhelmed, and the rules on tariffs at this time are amazing,” he said.
“The goods destined to re -export to Canada can be classified and erroneously taxed, or suppliers can decide that it is safer and easier to develop those potential costs in their prices, which is finally reduced to the Canadian buyer.”
When will we see prices upload?
LI, from the Metropolitan University of Toronto, points out that there was a lot of storage of inventory and preventive import in forecast of these rates. Therefore, some of the changes in prices can be delayed due to a “wait and see approach,” he said.
This is especially true for Canadians, Li added, since the impact here is more indirect.
“But for delay, I mean months, no years.”
Is there a positive side for Canada anywhere?
Both Ouellet and Li say that there is the possibility that some prices for Canadian consumers really decrease, depending on how things develop. For example, if US tariffs against Chinese producers make it difficult for them to sell the United States, this can lead them to reduce their prices in other markets such as Canada, Li said.
And if the Us-China trade stops, China will probably seek to redirect its exports in another place, said Ouellet, which could benefit Canadian consumers in some categories if the surplus supply floods the market.
“Therefore, we could see higher prices in some products that pass through the US.”
