How to successfully navigate risk and innovation in direct selling.
The ongoing imposition of tariffs—along with the uncertainty surrounding their implementation—continues to disrupt cross-border direct selling between the US and Canada. For companies operating on both sides of the border, these challenges impact logistics, customs management, pricing, consumer sentiment and investment decisions.
While the rapidly changing trade landscape makes it difficult to compile a definitive list of measures, key concerns include:
- Uncertain US Tariffs
The US has announced 25 percent tariffs on nearly all Canadian imports, only to postpone them multiple times. This uncertainty complicates planning for Canadian direct selling companies exporting to the US and for US businesses sourcing ingredients or manufacturing in Canada. - Canadian Retaliatory Tariffs
Canada has imposed 25 percent retaliatory tariffs on various US products, including cosmetics, kitchenware and jewelry—all key categories for direct sellers. These tariffs force companies to reconsider pricing strategies and distribution logistics. - Changes to Duty-Free Exemptions
The US government plans to eliminate its duty-free de minimis exemption for small packages. This means Canadian direct selling companies shipping to US consumers will face additional customs requirements, including full documentation and duty collection on every order, regardless of value. If Canada were to introduce similar measures—though not currently proposed—US sellers shipping directly to Canadian consumers would face the same challenges.
Beyond these official trade policies, shifting consumer sentiment is adding further complications. In Canada, a growing “Buy Canadian” movement has led some consumers to actively avoid US-made products. To address this, DSA Canada is working with members to emphasize that while Canadian independent sales consultants market products from around the world, they are local entrepreneurs who contribute to their communities and deserve support.
To navigate these complexities, direct selling companies should collaborate closely with customs and trade specialists to ensure compliance with all regulations. Understanding product classifications and tariff obligations is essential. Meanwhile, DSA Canada continues to engage with government officials, advocating for de-escalation, negotiation and the removal of direct selling products from current and future tariffs.
Peter Maddox has served as the President of DSA Canada since 2018. As President, he is passionate about promoting the growing positive impact that direct selling has on Canadian individuals and communities, as well as ensuring that the association remains an influential representative of its member companies. His role at DSA Canada includes strategic planning, government relations, regulatory affairs, media relations and member engagement as well as being the public face of the organization.
