Local Retailers Excited About New Trade DealPosted: Updated:
Barbara Thomas, who co-owns River Magic gift shop in Clayton, may see more revenue from her Canadian shoppers thanks to the United States Mexico Canada Agreement. That's because the USMCA increases the duty-free limit from $20 for Canadians shopping in the U.S. to $150.
"They may choose something that is more expensive because they can now take it back duty free," she said.
Not only may there be more vacationing Canadians purchasing up to $150 from retailers like Thomas in the north country, but there may be more Canadians coming here in general.
"It certainly entices more Canadian shoppers to come down this way and what will happen is that it generates more sales tax for us, so it potentially could be a win-win," said Scott Gray, chair of the Jefferson County Legislature.
Meanwhile the office manager of 1000 Islands River Rat Cheese says that the increase in Canada's duty free limit will certainly be beneficial for business."
"We have many Canadians come in and the $20 limit really cuts them short of what they want to bring home. So $150 would really support our business and I think they would love it," said Rachel Scudera.
The duty free limit isn't the only thing that's increasing for Canadian shoppers. They used to not have to pay sales tax if they made purchases under $20. That has now increased to $40.
It's a seeming win-win for north country retailers and Canadians shopping over the border.