A Canadian company that manufactures children's toy couches finds itself facing a high bill for import tariffs after bringing production home to this country even though it's no longer importing a majority of its product, after a single component of the couches was reclassified by the Canada Border Services Agency.Every part of this couch was made in Canada except the slipcovers. When everything pictured was made in China, the Canada Border Services Agency didn't apply any tariffs.
Trouble started for her in 2023, when Feldstein opted to move production of the couches to Canada from China.Business owner Sara Feldstein sits on a Barumba Play couch. 'I on-shored my manufacturing to Canada from China and have been penalized for it,' she said. Instead, Feldman says the slipcovers have been lumped in with textiles such as carpets, bed linens and table linens — and now she's expected to pay 18 per cent duty on imports.
"It would make me want to tell others, don't bother bringing your business back to Canada. Do it overseas. It's safer that way," she said. But eliminating the requirement to pay, even before appeals are exhausted, may not be the right solution, according to Jenifer Bartman, a business advisor based in Winnipeg.
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