OTTAWA - Several small Indigenous businesses are suspending shipments to the United States due to new tariff regulations implemented by the Trump administration. These changes affect trade relationships that have existed since before the founding of both Canada and the U.S.

Matthew Foss, vice president of research and public policy at the Canadian Council for Indigenous Businesses, emphasized the need for a resolution. "There needs to be a resolution to allow Indigenous Peoples to continue to undergo the trade routes that they have established and practised, and the treaties that have been signed in the past have suggested that these would be honoured," he said. He added that it is the responsibility of the federal governments in both countries to find a way to honor these agreements.

Last month, President Trump announced the suspension of duty-free de minimus imports from all countries, which took effect recently. Previously, goods valued under $800 could enter the U.S. without customs clearance. Now, these items will require vetting and will be subject to tariffs ranging from 10 to 50 percent. Additionally, for the next six months, carriers can opt for a flat duty of $80 to $200 per package instead of a value-based rate.

Foss noted that while Indigenous craftworks are exempt from tariffs under the Canada-U.S.-Mexico trade agreement, the documentation required to secure this exemption can be overwhelming for small businesses. He is advocating for the federal government to simplify these administrative processes, but progress has been slow.

Stevi Riley, who operates The Beaded Hero from Walpole Island First Nation, reported that about half of her orders come from the U.S. She decided to stop all sales to the U.S. due to the new import rules, expressing concern over the potential impact on her business. "I just felt discouraged," Riley said, referring to the anticipated 35 percent increase in shipping costs. "If you (the U.S.) don’t want Canadian products going over, I don’t want to deal with it. I don’t want things getting destroyed or things getting sent back, and I feel like that’s going to happen."

Other businesses, such as Tribal Spirit Drums and Music in Ivry-sur-le-Lac, Quebec, and Cedarlilie Beads, have also announced they will halt U.S. sales due to the tariff changes. Dominique O’Bonsawin, who runs Cedarlilie Beads, lamented the lost opportunities, stating, "It definitely means less reach, which is a bummer because the U.S. would be a huge opportunity for growth. Not being able to trade freely creates more distance and barriers for rebuilding relationships with communities in the U.S. We are related and connected, and this is frustrating."

The Trump administration has argued that the previous exemption was being exploited by foreign businesses to evade tariffs and that it facilitated the entry of illegal goods into the U.S. This issue has also been discussed by former President Joe Biden and members of Congress.

Jack Royal, chairman and CEO of the Indigenous Businesses Corporation, highlighted the uncertainty in U.S.-Canada relations and its impact on Indigenous businesses. "Like other small businesses, what First Nations are looking for is some certainty and to look for support on how we can maximize our other options," he said.

The Universal Postal Union reported that 25 countries have already suspended postal services to the U.S. These suspensions will remain until U.S. authorities clarify how they will implement the new measures. Canada Post has not suspended exports but is working to understand the new regulations and find solutions to maintain business continuity.

Foss mentioned that the Canadian Council for Indigenous Businesses is actively engaging with the Canada Trade Commissioner Service to address cross-border trade issues. The Assembly of First Nations is also discussing resolutions related to cross-border trade at its annual general meeting in Winnipeg. One resolution, proposed by Chief Roger Redman of Standing Buffalo First Nation, calls for funding a legal opinion on Aboriginal and treaty rights concerning cross-border trade and urges the federal government to include First Nations in tariff and trade negotiations.

O’Bonsawin expressed hope for a return to normalcy in trade relations between the U.S. and Canada. "I don’t see anything being done in the near future unfortunately, but I’m hopeful the next U.S. administration will do better for Canada and the U.S."