Tariffs: A Cautionary Tale

[Kawika]

This will be primarily of interest to residents of Canada who purchase cards from auction houses and other sellers in the States.

I won a handful of Western Playground cards from Heritage in their recent auction. Ordinarily I would expect a 12% surtax (5% GST, 7% PST). Today I received an invoice from FedEx that included an additional 25% tariff on top of GST/PST of C$3100 which added an extra C$5100. Eight thousand bucks! Didn't see that coming.

My letter to the Fed Ex broker:

Dear Mr Busa -
I purchase collectible sportscards from American auction houses two or three times a year and pay import charges as required. I am astonished by the amount you are asking. Does this 25% tariff have anything to do with the current trade war brouhaha? As it stands I am unwilling to pay such an exorbitant tax.

Thank you.


His reply:

Good afternoon David,

That is correct. Effective March 4, 2025, certain goods imported into Canada and originating in the U.S. are subject to a surtax in the amount of 25% of the value for duty in accordance with the United States Surtax Order (2025-1). The surtax will apply to goods imported for commercial and personal purposes, even when exported from a country other than the U.S. into Canada, and including those that may be eligible for the remission of customs duties, sales and/or excise taxes under the Courier Imports Remission Order (de minimis). Would you like us to start the return of the package?


I surmise that Leon would frown on any political opinionating on this sorry state of affairs. No 51st state jokes please. To my fellow residents of the Great White North I say think twice before you pull the trigger. It could get expensive.

[Bpm0014]

Can you pick up the items in person from the US?

[raulus]

Wow!

I guess we can count on less aggressive bidding from north of the border for now. Not so great if I’m selling, although I could live with less competition when I’m buying.

I wonder if a vault might be a strategy here. Park it in the vault until the tariffs blow over, and then have it shipped to you.

[Peter_Spaeth]

Originally Posted by Bpm0014

Can you pick up the items in person from the US?

What good would that do, he still has to get them across the border and home?

[BioCRN]

This isn't "political" even though politics enabled it to happen.

Given how much of the hobby's collectables are US-based, it's vital information.

Can you pick up the items in person from the US?

I have bought from EBay buyers located in Toronto/Ottowa that have shipped their goods from right across the border using cheaper US postage for years now. I don't know how they make that happen or the real savings for them, but it's something I've noticed.

[Peter_Spaeth]

Originally Posted by BioCRN

This isn't "political" even though politics enabled it to happen.

Given how much of the hobby's collectables are US-based, it's vital information.



I have bought from EBay buyers located in Toronto/Ottowa that have shipped their goods from right across the border using cheaper US postage for years now. I don't know how they make that happen or the real savings for them, but it's something I've noticed.

A friend of mine in Toronto drops cards off at a business that will drive them across the border to the nearest US post office and mail them there. Not sure of the economics of it.

[conor912]

I sense a card smuggling market materializing.

[oldjudge]

So this is a surtax initiated by the Canadian Government in response to the US tariffs? There go the hockey and curling card markets. 🤣

[Mark17]

All Canadian collectors should have a good USA friend whom they can visit at least once a year.

[Kawika]

I appreciate all the replies so far. Some good thoughts. I'd would like to add some additional commentary but must vacate the keyboard. Gotta a ton of things to do this afternoon. Good day, eh.

[Casey2296]

Originally Posted by conor912

I sense a card smuggling market materializing.

-
I can envision Leon dusting off his prohibition era Rum-running boat "Miss Luckey" and having a lucrative side hustle until the Tariffs are figured out.
-

[jingram058]

Originally Posted by Casey2296

-
I can envision Leon dusting off his prohibition era Rum-running boat "Miss Luckey" and having a lucrative side hustle until the Tariffs are figured out.
-

Now THAT'S awesome 👍

[Michael B]

It could be relatively easy if there was a collector in a U.S. city/town near the border who could drive across and post from Canada. Don't forget the passport though. If you lived near Buffalo drive to Fort Erie or Niagara Falls. Detroit is across the river from Windsor. Bellingham is fairly close to Vancouver. You do not need to disclose to CBP if you have a few envelopes or small boxes you wish to mail. You just tell them you are visiting a friend for lunch or shopping. A Canadian that lives near the border could also rent a box at a Mailbox Etc. or UPS Store, possibly even at a U.S. Post Office. From what I understand the Post Office cannot require you to live near them to rent a box.

I have a friend in Switzerland who does something similar. He purchases quite a few items on EbayUSA. Everyone wants to charge exhorbitant shipping to send it to him. He has them sent to me and I package them together. If I am travelling to Europe I will bring them along, but if not, I send the package to Germany and he drives there to pick it up. He lives in Zurich so it is less than an hour to the border town. An additional issue for his is Swiss Customs knows he is a collector and opens every package addressed to him and he gets hit with duties. Not so if he is driving across the border to pick up.

[todeen]

I sold some Cincinnati Reds cards in November to a man living in London. He flew to the USA once a month for business. He shipped his cards to his family and would grab his mail before flying back to England. He asked me to ship stateside.



Sent from my SM-S926U using Tapatalk

[Balticfox]

Originally Posted by Kawika

This will be primarily of interest to residents of Canada who purchase cards from auction houses and other sellers in the States.

Today I received an invoice from FedEx that included an additional 25% tariff on top of GST/PST....

Oh, oh. That's going to put a real chill on my activities.

[Kawika]

Pushing midnight here. Just got a chance to re-read the guy's letter to me. Was hard to understood without delving into the tax references which is a non-starter for an illiterate peon such as myself. Am left wondering under what category of tariffed goods might fall antique sports collectibles. I'll write the guy again. Maybe he can persuade me that this is not a crock of bureaucratic BS. I will let you know. I'd be interested in hearing others' experiences of a similar vein. In the meantime I'll instruct him to ship it to a US friend unless it must be returned to Heritage. Like someone mentioned this will blow over eventually.

And since every thread needs a card or two . . .

[Tabe]

On the official Canadian Border Services Agency site, it says there's a 25% tariff on:

What the tariffs apply to
The tariffs apply to:

new or used goods with a value that exceeds the personal exemptions of the individual travellers bringing them into Canada
new or used goods imported by mail and courier
new or used goods originating from the US whether they are imported directly from the United States or not
commercial shipments
For more information on commercial shipments, refer to Customs Notice 25-10: United States Surtax Order (2025-1)

https://www.cbsa-asfc.gc.ca/travel-v...index-eng.html

It would seem your items fall into these criteria.

[doug.goodman]

I find it amusing that most suggested "solutions" involve an illegal activity by people who I presume would consider themselves law abiding citizens.

[doug.goodman]

Does anybody know the statute of limitations for smuggling an engagement ring into the US?

Asking for a friend.

[Mark17]

Originally Posted by doug.goodman

I find it amusing that most suggested "solutions" involve an illegal activity by people who I presume would consider themselves law abiding citizens.

Shipping to a friend, who then waits for the tariff situation to blow over, wouldn't be illegal, would it?

Setting up a P.O. box in the US, along the border, having it shipped there, then dressing as a nun to smuggle it across the border would be illegal.

[doug.goodman]

Originally Posted by Mark17

Shipping to a friend, who then waits for the tariff situation to blow over, wouldn't be illegal, would it?

I said most...

[BillyCoxDodgers3B]

Have any Americans here experienced anything similar lately in receiving orders from Canada? We've constantly been told that those tariffs have been placed on hold until a further date.

[carlsonjok]

Originally Posted by Kawika

Pushing midnight here. Just got a chance to re-read the guy's letter to me. Was hard to understood without delving into the tax references which is a non-starter. Am left wondering under what category of tariffed goods might fall antique sports collectibles. I'll write the guy again. Maybe he can persuade me that is not a crock.

I would ask specifically what Harmonized Tariff Schedule it was imported under. Collectibles are generally covered under HTS-4 9705 while printed matter is covered under HTS 4911. According to this list published by the Department of Finance Canada, neither HTS code is subject to the 25% tariff.

[carlsonjok]

Originally Posted by BillyCoxDodgers3B

Have any Americans here experienced anything similar lately in receiving orders from Canada? We've constantly been told that those tariffs have been placed on hold until a further date.

You are thinking of the broad tariffs on all goods imported from Canada (USMCA agreement notwithstanding.) The 25% tariff in play here, which broadly covers goods not covered in USMCA, is in response to the 25% tariff on Canadian steel and aluminum. Note that the US imports a lot of aluminum from Canada because aluminum production is very energy intensive, and Canada has access to a lot of cheap hydroelectric power.

[TUM301]

Oh No, Christopher Walken’s scene from Pulp Fiction just came to mind.

[Vintage Vern]

Originally Posted by Balticfox

Oh, oh. That's going to put a real chill on my activities.

There'll be a 25% tariff for each post you make. Leon will address the matter, and quote you the rate per letter per post. Thanks in advance.

Silence is Golden!

[Bpm0014]

I find it amusing that most suggested "solutions" involve an illegal activity by people who I presume would consider themselves law abiding citizens.

You can pay the extra $5100. I’m not.

I feel that bringing a Vince Carter, Toronto Raptors, rookie across the border in your carry on is hardly the crime of the century.

[Qcards]

I used to do a lot of border crossings with cards both from Canada to the U.S. and vice versa and always played it straight and paid the fees and taxes.

If you do bring cards from U.S. to Canada and do not declare them and they end up finding them, you will pay the tax and tariff and your license plate will be flagged for a five year period meaning you will be asked to park your car and come inside and explain what you are up to for the next five years coming into Canada.

As for crossing into the U.S. from Canada to ship cards without declaring them, that is an equally bad idea.

Absolutely not worth the risk IMHO

[BRoberts]

Originally Posted by Qcards

Absolutely not worth the risk IMHO

Net54 is an online community that has many members who routinely post here seeking free tax advice and investment guidance. Risk doesn't seem to be in the equation for a lot of people.

[JustinD]

Here in Detroit we have numerous POBox businesses that exist specifically to give the Canadians a US shipping address. They just drive over for their mail and take back home over the bridge or the tunnel.

Not saying this is correct for the Canadians to be doing, just that it is a fairly common practice seemingly.I know of several within a few blocks of the Windsor tunnel.

As money talks, I can see many more of these businesses popping up if the demand grows.

[Section103]

Originally Posted by Bpm0014

I find it amusing that most suggested "solutions" involve an illegal activity by people who I presume would consider themselves law abiding citizens.

You can pay the extra $5100. I’m not. Bringing a Vince Carter, Toronto Raptors, rookie across the border in your carry on is hardly the crime of the century.

Not all laws are just.

[Balticfox]

Originally Posted by doug.goodman

I find it amusing that most suggested "solutions" involve an illegal activity by people who I presume would consider themselves law abiding citizens.

But it's every citizens duty to resist the State's unceasing attempts to undermine our fundamental rights to life, liberty, property and the pursuit of happiness.

[V117collector]

Thanks for the heads up, David!

I didn't think the tariffs were in effect, as I've been receiving mail via stateside without getting hit with the 25%.
There must be some leeway seeing how my recent items only cost just over $100 USD (eBay).

I'll try to stop buying cards from the States until this trade war ends. It just seems once you need something there's always a catch.

[steve B]

Red highlight mine

Originally Posted by Kawika

That is correct. Effective March 4, 2025, certain goods imported into Canada and originating in the U.S. are subject to a surtax in the amount of 25% of the value for duty in accordance with the United States Surtax Order (2025-1). The surtax will apply to goods imported for commercial and personal purposes, even when exported from a country other than the U.S. into Canada, and including those that may be eligible for the remission of customs duties, sales and/or excise taxes under the Courier Imports Remission Order (de minimis). Would you like us to start the return of the package?

So they're adding 25% to everything no matter where it comes from?
That seems a bit overboard, and maybe not the government but the agent.

Would it apply to Canadian goods like OPC cards being "repatriated" (something I used on a customs form years ago sending an item back to it's country of origin. The guy I traded with did the same )

[BillyCoxDodgers3B]

Originally Posted by steve B

Would it apply to Canadian goods like OPC cards being "repatriated" (something I used on a customs form years ago sending an item back to it's country of origin. The guy I traded with did the same )

Oh, I like that! Yep, returning to country of origin. They have no leg to stand on! It's their own rule. Just wish there was more cause to employ such a wonderful loophole.

[BioCRN]

Originally Posted by steve B

So they're adding 25% to everything no matter where it comes from?
That seems a bit overboard, and maybe not the government but the agent.

Some exporters will export to a non-tariff country before going into a destination country to escape the tariff.

Vietnam tends to get a lot of China export business when tariffs on them hit if it's not explicit that the tariffs cover the actual source country before funneled through a "3rd party country."

[JamesGallo]

I have been buying comics from a buddy in Canada for 10+ years they are all foreign to both countries mostly from Europe. I got an order a couple weeks ago with no issues, but I was concerned.

James G

[samosa4u]

Most Canadians only want hockey cards and most hockey cards were made in Canada! So, these are exempt from tariffs.

[ALR-bishop]

I assume a lot of Canadians would also like to get the Stanley Cup
back in Canada 😊. Hopefully tariffs would not apply

[Exhibitman]

[philo98]

Originally Posted by Michael B

It could be relatively easy if there was a collector in a U.S. city/town near the border who could drive across and post from Canada. Don't forget the passport though. If you lived near Buffalo drive to Fort Erie or Niagara Falls. Detroit is across the river from Windsor. Bellingham is fairly close to Vancouver. You do not need to disclose to CBP if you have a few envelopes or small boxes you wish to mail. You just tell them you are visiting a friend for lunch or shopping. A Canadian that lives near the border could also rent a box at a Mailbox Etc. or UPS Store, possibly even at a U.S. Post Office. From what I understand the Post Office cannot require you to live near them to rent a box.

I have a friend in Switzerland who does something similar. He purchases quite a few items on EbayUSA. Everyone wants to charge exhorbitant shipping to send it to him. He has them sent to me and I package them together. If I am travelling to Europe I will bring them along, but if not, I send the package to Germany and he drives there to pick it up. He lives in Zurich so it is less than an hour to the border town. An additional issue for his is Swiss Customs knows he is a collector and opens every package addressed to him and he gets hit with duties. Not so if he is driving across the border to pick up.

Ive done this for many years. Used a shipping consolidator based in NJ and once I gave the go-ahead would ship my packages to Hong Kong. Hong Kong has no import taxes, duties, fees, etc. Therefore it clears "customs" quickly. Normally, from the date it shipped in NJ it would be in my house 48 hours later in HK. I would look for one of these shipping consolidators in Detroit, Buffalo, etc etc and just drive across, obviously if thats feasible on where you live in Canada.

[samosa4u]

Originally Posted by ALR-bishop

I assume a lot of Canadians would also like to get the Stanley Cup
back in Canada 😊. Hopefully tariffs would not apply

We would be willing to pay the tariff on the Stanley Cup because we haven't won one since 1993!

[Huysmans]

Originally Posted by ALR-bishop

I assume a lot of Canadians would also like to get the Stanley Cup
back in Canada 😊. Hopefully tariffs would not apply

North America's oldest, greatest and most famous trophy is always in Canada - locked in a vault in the Hockey Hall of Fame.
You didn't think we would trust you rascally American foreigners to handle the original Cup, did you??

[BillyCoxDodgers3B]

Originally Posted by philo98

I would look for one of these shipping consolidators in Detroit, Buffalo, etc etc and just drive across, obviously if thats feasible on where you live in Canada.

Easy dispensing the advice there, partner. There are still duties/tariffs to pay when crossing the border, so your instructions will not help unless the person wishes to try to sneak the stuff into Canada without declaring it. I highly advise against that.

Years ago, I crossed into Canada (where I live) after a trip to the States. I told them I had nothing to declare other than what I was legally allowed to purchase at the Duty Free shop. Unfortunately, I had completely forgotten that I had a 1950's autograph book in my laptop bag. Actually, I had unknowingly brought it with me from Canada and had it with me the whole time! They pulled me in for a general vehicle inspection, discovered the autograph book and certainly didn't believe the innocent truth of the matter. I was threatened with the aforementioned 5 year flag, a fine of up to $10,000 and seizure of my vehicle and property!

The only reason they knew the thing had any value was because they recognized the name Ted Williams. Ironically, the Williams autograph wasn't even real! It was a clubhouse version, signed by teammate Willard Nixon. Like I was about to try to get out of the situation by explaining the nuances of clubhouse autographs!!!

I somehow managed to get out of there with all my stuff and no fines. To this day, I do not know if I was flagged at that particular checkpoint, as I have refused to use it since. I'm guessing not, as such a flag would be nationwide, I surmise.

Long story short, don't sneak stuff across in your car.

[Rich Klein]

I drove from Seattle area to a couple of shows in Vancouver, Canada

Came back over the border and was driving a nice rental car and decent clothes and the crossing board agent probably said to himself, got a live one here

He was insistent I was doing something wrong so he not so nicely asked to me open the trunk of the car. Opened the trunk and as I knew, there was nothing in there. Comes back to me with a sound of disappointment in his voice and says, yep that's a trunk.

And to be honest, I did screw up. I thought I had nothing I bought at the Canadian show but I did buy a 1990 Leaf Larry Walker and, ooopsie, I forgot to say that.

After that brief break, I got back on my way back to the hotel and later that night went to the 1st minor league game I would ever attend

Rich

[Mark17]

In 1988 I had been renting a cabin in northern California, later visiting and buying a piece of property in Olympia, WA. On my way back to MN I decided to take a scenic Canadian route. Everything was routine at the border until the girl pulled out a roll of toilet paper I had in my trunk (the spare from my cabin stay... I figured, why leave it behind?) She questioned me about it and didn't like my innocent, true answer.

Out of the car, waited until she and a co-worker thoroughly went through everything in my car. I suppose they thought I was planning some back woods survivalist-type escape into the great northwestern wilderness. After all, this was the 1980s and Canadians were using toilet paper by then...

I'm sure they have a lengthy list of items that trigger the full search.

[Kawika]

Originally Posted by steve B

So they're adding 25% to everything no matter where it comes from?
That seems a bit overboard, and maybe not the government but the agent.

That is pretty much the gist of my question, as of yet unanswered by the Fed Ex broker. I had a look at the United States Surtax Order (2025-1) he cited, hoping to learn what is subject to the tariff and what is not, but came away no wiser. At the present time I do not know if all eBay items, Amazon purchases, AH winnings etc will be accompanied by another fat hand in my wallet.

I requested that he forward my cards to a friend in the States who can hold onto them until the trade war is over. "Smuggling" is not an option at this point. I am up to my eyeballs in pilikia already. Don't need any more grief.

Speaking of the Stanley Cup, there's a bit of hoopla right now in Victoria BC where I live. On March 30, 1925 the Victoria Cougars beat the Montreal Canadiens in a best-of-five series at Patrick Arena which stood less than a mile from our house. The Cup will be brought back this weekend and various festivities are planned. Looking forward to seeing the hardware.

Commemorative cairn at Oak Bay High School across the street from where Patrick Arena once stood



1925 team postcard

[BioCRN]

Originally Posted by Rich Klein

And to be honest, I did screw up. I thought I had nothing I bought at the Canadian show but I did buy a 1990 Leaf Larry Walker and, ooopsie, I forgot to say that.

Larry Walker, Leaf, 1990 (playing for Montreal).

That's a triple penalty.

[Casey2296]

Originally Posted by Kawika

Pushing midnight here. Just got a chance to re-read the guy's letter to me. Was hard to understood without delving into the tax references which is a non-starter for an illiterate peon such as myself. Am left wondering under what category of tariffed goods might fall antique sports collectibles. I'll write the guy again. Maybe he can persuade me that this is not a crock of bureaucratic BS. I will let you know. I'd be interested in hearing others' experiences of a similar vein. In the meantime I'll instruct him to ship it to a US friend unless it must be returned to Heritage. Like someone mentioned this will blow over eventually.

And since every thread needs a card or two . . .

-
Btw, fantastic Western Playground pick ups David, congrats.
-

[edjs]

Originally Posted by Kawika

That is pretty much the gist of my question, as of yet unanswered by the Fed Ex broker. I had a look at the United States Surtax Order (2025-1) he cited, hoping to learn what is subject to the tariff and what is not, but came away no wiser. At the present time I do not know if all eBay items, Amazon purchases, AH winnings etc will be accompanied by another fat hand in my wallet.

I requested that he forward my cards to a friend in the States who can hold onto them until the trade war is over. "Smuggling" is not an option at this point. I am up to my eyeballs in pilikia already. Don't need any more grief.

Speaking of the Stanley Cup, there's a bit of hoopla right now in Victoria BC where I live. On March 30, 1925 the Victoria Cougars beat the Montreal Canadiens in a best-of-five series at Patrick Arena which stood less than a mile from our house. The Cup will be brought back this weekend and various festivities are planned. Looking forward to seeing the hardware.

Commemorative cairn at Oak Bay High School across the street from where Patrick Arena once stood



1925 team postcard

Kris Draper’s kid pooped in it, so don’t kiss it. Which is a nice segue, since they later became the Red Wings.