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.

[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.
-

[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.

[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.

[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.

[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.

[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.
-

[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.

[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.

[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

[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

[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.

[Balticfox]

I'm hearing some nightmarish stories from other Canadian collectors. A posting buddy/trading partner just "won" some cards in an online auction for U.S.$61.00 which would have worked out to about Cdn.$87.37 at an exchange rate of 1.43225. GST of 13% would have added Cdn.$11.36. A 25% tariff added Cdn.$21.84 for a total of $33.20 in government charges. Meanwhile FedEx charged him a customs brokerage fee of $35.07 to collect that $33.20. So my buddy was left battered and bleeding.

Here's another account:

Originally Posted by gadesja

My bill from Tom was $235.82US including $24 for shipping. Not unreasonable. However once Customs got involved I was dinged for another $153.33CA!! So my total was over $500CA.

So I'm afraid, very afraid, of the charges I'll see on three packages I'm now awaiting from the States.

[Exhibitman]

Maybe vault expensive graded stuff in the USA until this BS is over?