Let's Talk Tariffs - News and Next Steps.
What Changed?
As many of you have now heard, the De Minimis exception was removed on August 29th. This means that all goods under $800 heading into the USA, are now subject to tariffs and duties.
As we are in Canada, we prepared in advance by filing USMCA forms along with all relevant and supporting documents with every order, submitted electronically as well as included physically in a pouch on each shipment.
The Challenges Faced
All week, we have been fighting tariffs and duties applied to our customers’ orders by UPS and FedEx customs brokers. We’ve put in 14 - 15 hour days, every single day; communicating with customers, chasing UPS and FedEx with phone calls, and searching for solutions.
Despite our preparation, UPS and FedEx refused to acknowledge our certifications and documents, and continued to randomly and inconsistently apply these massive fees. Their priority seemed to be focused on keeping shipments moving, with complete disregard for us and our customers.
The impact has been severe. Randomly chosen stainless steel parts such as exhaust tips, hood stacks, and vinyl covers were hit with tariffs and duties ranging from 35% - 50%, meanwhile some steel bracket and plate orders were nailed with fees over 200% of product value..
Impact on Customers
With the volume of refunds we’ve had to issue, disputes we’ve filed with customs, and packages seized by UPS and FedEx after being rightfully rejected by customers, the situation started becoming unattainable to keep working around.
Because we believe in standing by our customers, we issued and are continuing to issue refunds for product out of our pocket, to everyone who is choosing to reject their package from the carrier (including custom orders).
It remains unclear whether UPS and FedEx will return our goods or compensate for the damage, but that is a second priority at this point. What matters most to us is that we did the right thing: helping customers deny overcharges from these carriers and ensuring that no hard-earned dollars are lost.
As many of you have seen in our social media posts and videos, we manufacture everything right here in Canada, using Canadian and American materials. Under USMCA, our products should be tariff-free, yet customs has continued to ignore this fact.
What's next?
Unfortunately, we have been forced to temporarily suspend shipping into the USA until further notice. We are doing everything possible to reinstate it quickly. Updates will be shared on social media and on our website as soon as a workaround is in place.
We are currently working closely with third-party customs brokers to ensure our documents are acknowledged at the border, so that no customer is unfairly charged going forward. In the meantime, we continue to ship across Canada and remain hopeful that U.S shipping will be restored shortly, possibly as early as next week.
Thank you guys for your continued support through these times. We’re making sure to keep the shelves stocked, still building parts every day, and pushing forward 🤝
- Alex G. (Owner at Northspec Built Inc.)
