If a customer in the USA orders fabric from your store in Canada, and the fabric is made in China, they may be subject to the 104% tariff imposed by the United States on Chinese imports, depending on a few factors.
Here’s how it works:
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Import from Canada to the USA: Even though the product is being purchased from your Canadian store, the fabric's country of origin is still China. This means it’s treated as a Chinese product when entering the U.S. market.
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U.S. Tariffs on Chinese Goods: The U.S. has implemented tariffs, including a 104% tariff on certain Chinese-made goods under the U.S.-China trade war. This tariff applies when goods are imported into the U.S., regardless of whether they pass through Canada first, as long as the goods are ultimately from China.
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Exemptions or Reduced Tariffs: There are some exceptions, and specific tariff codes (HS codes) might determine whether a product is subject to this high tariff. Additionally, some goods might qualify for exclusions or reduced tariffs depending on trade negotiations or product-specific conditions.
Key Points:
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Country of Origin: If the fabric is made in China, it is still considered a Chinese product and subject to U.S. tariffs, even if it’s shipped from Canada.
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Tariff Rate: If the fabric falls under categories affected by the 104% tariff, your U.S. customer will likely have to pay this tariff when the fabric enters the U.S. from Canada.
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Shipping Route Doesn't Impact the Tariff: The fact that the product ships from Canada does not exempt it from U.S. tariffs on Chinese-origin products.
If you are unsure what the country of origin is on a particular product, please send us an email or chat and we would be happy to let you know.
The U.S. Administration has confirmed that tariffs on goods from Canada and Mexico will take effect starting at 12:01 AM on March 4, 2025. However, a recent amendment to the original Executive Order clarifies that items entering the U.S. under Section 321 (the de minimis program) will remain exempt from these tariffs—at least for now—until U.S. Customs and Border Protection (CBP) establishes a system to collect duties on these shipments.
We will continue to monitor developments and provide updates as necessary.
The U.S. has postponed the 25% tariff on Canadian goods for 30 days. However, a new tariff of 10-30% has been applied to goods originating from China and Hong Kong. This means that if your fabric or notions are sourced from either of these regions, your shipment will now be subject to this tariff.
We want to keep you informed about important changes that could impact your shipments from Simplifi Fabric and SimplifiPrintShop.com based in Canada shipping to USA. On February 1, 2025, the Trump administration issued an executive order imposing a 25% tariff on most goods imported from Canada, effective February 4, 2025.
What You Need to Know:
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25% Tariff: A 25% tariff will apply to most goods imported from Canada starting February 4, 2025.
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End of Section 321 Exemption: Many of our shipments that currently qualify for duty-free entry under Section 321 may no longer be exempt from these new tariffs.
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When Will This Happen?: These changes will take effect on February 4, 2025, and enforcement will begin immediately.
For full details, you can review the official executive order and White House fact sheet.
We are actively reaching out to clarify exactly how these tariffs will be applied. We will share a more detailed update once we have more information.
Thank you for your continued trust—we’re in this together!
Happy Sewing!
-Simplifi Fabric
