Ed. note: The below letter was sent August 18 to the Canadian Federation of Independent Business, the Retail Council of Canada, and the provincial Chambers of Commerce for BC, Alberta, Saskatchewan, Manitoba, Ontario, Quebec and Atlantic Canada.

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As you know, micro businesses represent 57 per cent of all businesses in Canada.

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I am writing on behalf of an underserved micro business segment in the retail sector, the vintage- and secondhand-selling community, to express deep concern about the upcoming removal of the Section 321 de minimis exemption that allows shipments valued at or under US$800 to enter the United States from Canada duty free.

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This change threatens to cut off a crucial revenue artery and impact the livelihoods of thousands of Canadians who long have relied upon open cross-border commerce to maintain viability. 

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Canada’s vintage and secondhand sector both preserves our past and represents our economic future. Our businesses support the circular economy, diverting thousands of tonnes of usable textiles, furniture, and household goods from our landfills every year into the homes of people across North America.

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In 2023, the sale of secondhand apparel alone in Canada increased 13 per cent over the previous year to an estimated CA$4.2 billion. Canadian secondhand sellers actively contribute to a global secondhand apparel market estimated to be worth US$265 billion in 2025, let alone the used household goods market, which is not tracked as closely.

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Significantly, our sector enjoys a low barrier to entry. As a result, we anecdotally see more employment opportunities for women, newcomers, LGTBQIA+, and BIPOC entrepreneurs.

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While formal data on the true number of businesses involved in this space does not yet exist, Statistics Canada puts bricks-and-mortar locations at over 3,000. Having worked directly with the industry as an independent media publisher over the past four years, I would put a conservative estimate for those operating in either physical locations or the oft-underreported e-commerce sphere in the tens of thousands. 

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The vintage and secondhand sector is frequently overlooked in sweeping legislation that affects all retailers, particularly with the suspension of Section 321, which takes aim at high-volume, low-value shipments crossing the border.

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E-commerce businesses in this industry use buy-sell platforms such as Etsy, eBay, Poshmark, et al., and their own websites, to send one-off parcels containing non-repeatable inventory to individual customers in the U.S. 

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Most products in this space are not eligible for preferential treatment under CUSMA — used goods are often missing the necessary manufacturer and material information to make a plausible claim.

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While there are provisions for some art and informational materials to continue enjoying duty-free exemption even after the removal of Section 321, most inventory does not fall under those categories, including many antiques, previously traded freely under the CUSMA agreement, which already have been subject to the tariffs invoked under the U.S. International Emergency Economic Powers Act.

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In many cases, product margins are not high enough for these micro businesses to pre-pay duties for their customers, as required by U.S. Executive Order 14324.

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Without duty-free entry, these businesses are not only facing the costs of the tariffs, but also brokerage fees, import duties, and taxes. If shop owners are to pass on these costs to their customers by way of increased prices, they are likely to be rendered non-competitive in the U.S. market. 

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Continued below

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Continued from above

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While [ed. note: at the time of this writing] postal shipments through Canada Post currently remain available with delivery duty unpaid after August 29, transportation carriers that use the postal network, such as ChitChats and Stallion Express, indicate that a) postal shipments will likely experience significant delays; b) there is already confusion over postal shipments at the border despite their current exemptions; and c) delivery duty unpaid options via postal service will, at some point, no longer be available once the appropriate systems are in place to collect duties.

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There are far-reaching consequences of this directive for the vintage and secondhand sector, and sellers are pleading for support and visibility on this issue.

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Lost U.S. customers cannot be replaced easily with new customers from Canada’s considerably smaller consumer pool. E-commerce sellers have turned to the U.S. to grow their businesses, and market expansion will be stymied with this change.

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U.S. sellers who currently source inventory from Canada under a favourable exchange rate will feel the sting of raised prices, increased shipping costs, and diminished access as Canadian shops indefinitely pause U.S.-bound orders, thereby limiting U.S. inventory diversity.

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Ultimately, we will see even more closures among micro businesses that cannot absorb the costs or shoulder the loss of their customers, a phenomenon that has already been happening for months as the tariffs chip away at consumer confidence despite the heretofore uninterrupted flow of goods under Section 321. 

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The pending removal of Section 321 disproportionately harms independently owned micro businesses that operate on low margins. Without provisions for these micro businesses, we risk erasing an entire category of entrepreneurial activity that aligns with Canada’s climate goals and allows hard-working Canadians to put food on their tables.

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The dealers, curators, and sellers who comprise this sector are a key customer base for many related service providers across the country including, but not limited to, shippers, restorers, auction and estate sale companies, thrift stores, and creative professionals who will feel the domino effect.

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We recognize that ongoing trade negotiations are underway, and that the CFIB is already working tirelessly to protect the needs of small business owners.

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We respectfully ask that, as part of this work, the CFIB consider these Canadian micro businesses in its advocacy at the federal level, whether through the proposal of an alternative low-value shipment exemption that protects independent operators, or through the reinstatement of Section 321 for businesses that meet certain criteria.

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Vintage and secondhand sellers are only a fraction of Canada’s micro business community — the business models of myriad artisans, creators, and retailers also are adversely affected by this change.

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I welcome the opportunity to provide further insight from the vintage and secondhand sector, including industry data, business impact, and anecdotal evidence. 

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Thank you for your attention to this urgent matter. Your support is valued and desperately needed.

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Sincerely,

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Kristina Urquhart

Publisher, The Vintage Seeker

thevintageseeker.ca

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