In this edition:
- Government of Canada launches pre-budget consultations
- Niagara-on-the-Lake advances Queen-Picton Heritage Conservation District study
- Manufacturing sales up for third consecutive month
- Wholesale sales down in both volume and revenue
- Trump takes issue with Canada’s digital services tax as a trade irritant
- Canadian dollar nearing 71 cents as U.S. ‘tariff fatigue’ sets in
- Focus on International Trade
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Picture credit: amazing studio / Adobe Stock
Government of Canada launches pre-budget consultations
The Government of Canada is inviting Canadians to participate in pre-budget consultations to help shape Budget 2025.
Through Budget 2025, the government will remain focused on responding to the current Canada-U.S. context, making life more affordable for all Canadians, continuing to strengthen economic security, and unlocking growth by boosting our competitiveness and productivity.
Starting today until March 10, 2025, Canadians can share their ideas for further government action in defence of Canada’s interests, as well as their priorities on how to strengthen our economy, at Canada.ca/your-budget.
Picture credit: Destination Ontario
Niagara-on-the-Lake advances Queen-Picton Heritage Conservation District study
As part of its ongoing efforts to protect and preserve the Town’s unique heritage, the Queen-Picton Heritage Conservation District (HCD) Study is moving forward with the identification of the study area boundary.
“Preserving the unique charm and heritage of Old Town is an important part of our Strategic Plan,” said Lord Mayor Gary Zalepa.
Photo credit: YouraPechkin / Adobe Stock
Manufacturing sales up for third consecutive month
Manufacturing sales increased for the third consecutive month, rising 0.3% to $71.4 billion in December, with gains in 12 of 21 subsectors. Higher sales of petroleum and coal (+3.4%), food products (+1.9%), and primary metals (+3.9%) were partially offset by a 5.0% decline in motor vehicle sales. Compared to December 2023, total sales were 0.3% higher.
Click here to read more.
Picture credit: Drazen / Adobe Stock
Wholesale sales down in both volume and revenue
Wholesale sales (excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain) fell 0.2% to $83.6 billion in December. Sales decreased in three of the seven subsectors, representing 53.4% of total wholesale sales. The largest decrease was in the machinery, equipment and supplies subsector (-2.1% to $17.7 billion), followed by the building material and supplies subsector (-2.8% to $11.8 billion). Wholesale sales were 0.6% higher in December, compared with the same month one year earlier.
In volume terms, wholesale sales (excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain) decreased 0.8% in December.
Picture credit: Office of the Prime Minister of Canada
Trump takes issue with Canada’s digital services tax as a trade irritant
On Feb. 13, President Donald Trump signed an executive order for reciprocal tariffs that escalated his trade threats, and his administration took aim at Canada’s digital services tax as a major trade irritant.
The White House sent out a document calling digital taxes in both Canada and France “unfair” for taxing American companies.
Picture credit: primestockphotograpy / Adobe Stock
Canadian dollar nearing 71 cents as U.S. ‘tariff fatigue’ sets in
The Canadian dollar continued to climb on Friday after closing above 70 cents U.S. on Thursday for the first time since December, as its counterpart in the United States slid on “tariff fatigue.”
The loonie was trading at 70.62 cents U.S., up 2.7 per cent since it dipped below 69 cents U.S. on Jan. 31, the day before Donald Trump claimed he would implement across-the-board tariffs on exports from Canada and Mexico.
Focus on International Trade
What is the ‘de minimis’ exemption and why is it so important for e-commerce?
The de minimis exemption — derived from Latin meaning “too small to be of significance” — was an amendment to the Tariff Act of 1930 and was enacted by Congress in 1938 to “avoid expense and inconvenience” to the government on imported goods valued at US$1 or less. Over the years, Congress has revised the de minimis threshold several times.
Starting in the 1990s, the U.S. began using the exemption — also referred to as Section 321 — to minimize transaction costs for businesses and consumers and to reduce trade barriers for U.S. exports. When Congress raised the threshold from US$200 to US$800 in 2015, the U.S. experienced a boom in de minimis imports. The U.S. received over 1.4 billion such packages in 2023, up from 153 million in 2015. Sellers and shippers of all stripes, from Chinese e-commerce giants such as Temu and Shein to small- and medium-sized Canadian retailers have leveraged the rule to efficiently transport low-value goods directly to U.S. consumers. Around 80 per cent of all e-commerce shipments into the U.S. use de minimis, according to a 2022 U.S. congressional research report.
The popularity of the exemption has also brought scrutiny: Some American lawmakers have argued that the rule allows narcotics or goods made with forced labour to flow into the country more easily.
Through the Daily Updates, the GNCC aims to deliver important business news in a timely manner. We disseminate all news and information we feel will be important to businesses. Inclusion in the Daily Update is not an endorsement by the GNCC.
