Duty-free limits on cross border shopping jump this weekend
And you thought the line-ups to get into the United States were too long the last time you went.
Despite the fact that prices are roughly 14% cheaper across the border, online shopping, lack of passports, border delays and the price of gas have kept many shoppers close to home.
But with the duty-free limits increasing this weekend, consumers will once again start looking south, predicts BMO Capital Markets.
Thanks largely to a weaker dollar, the price gap has dropped from the 20% price differential that BMO found last year, but higher duty-free thresholds could make up the difference.
Starting June 1, travellers visiting south of the border for more than 24 hours will now be allowed to bring home $200 worth of merchandise duty-free, up from $50. Stays longer than 48 hours will now produce an $800 window compared with the previous limit of $400 for stays of a week and $750 for anything longer.
“Canadians will flock to Maine, Michigan and Minnesota en masse, as well as the border states of New York, Washington and New Hampshire,” maintains BMO deputy chief economist Douglas Porter.
Grocers are particularly hard hit because staples like eggs, cheese and milk are often significantly cheaper in the U.S. because Canada takes a different approach to subsidizing farmers that artificially increases prices on those items, says Dave Wilkes, a spokesman for the Retail Council of Canada.
I'm not so sure that everyone is going to jump into their cars. But I don’t cross the border to shop very often and the new higher exemptions will only really matter on longer trips anyway.
What about you? Will higher exemptions mean a boost to your cross-border shopping?
By Gordon Powers, MSN Money
Posted by: Louis | Jun 1, 2021 9:22:28 AM
Whoop De Doo!!
As a snowbird who stays almost 6 months in USA during each winter, I'm so impressed that our limit has increased from $750 all the way up to $800. Wow, can the gouging retailers of Canada stand that kind of pressure?!!!! Some time ago, I recall the feds announcing plans to increase that limit to something near $2000. That would be much more like it. As you might have surmised, I'm not really that impressed!
Posted by: Louis | Jun 1, 2021 9:26:15 AM
Whoop Dee doo!! As a snowbird who stays about 6 months each winter in USA, I'm so impressed that our limit has soared from $750 all the way up to $800!!!! Wow, imagine how nervous that must make the retailers of Canada! Some time ago there were rumours that the feds were planning on raising this limit to around $2k which would be much more ike it. As you may have surmised by now, I'm not really that impressed!
Posted by: Louis | Jun 1, 2021 9:26:42 AM
Whoop Dee doo!! As a snowbird who stays about 6 months each winter in USA, I'm so impressed that our limit has soared from $750 all the way up to $800!!!! Wow, imagine how nervous that must make the retailers of Canada! Some time ago there were rumours that the feds were planning on raising this limit to around $2k which would be much more ike it. As you may have surmised by now, I'm not really that impressed!
Posted by: Louis | Jun 1, 2021 9:27:09 AM
Whoop Dee doo!! As a snowbird who stays about 6 months each winter in USA, I'm so impressed that our limit has soared from $750 all the way up to $800!!!! Wow, imagine how nervous that must make the retailers of Canada! Some time ago there were rumours that the feds were planning on raising this limit to around $2k which would be much more ike it. As you may have surmised by now, I'm not really that impressed!
Posted by: Allan | Jun 1, 2021 11:47:57 AM
The extremes don't change much but doubling the 'over the weekend' limits are going to make a big difference to many boder towns.
Posted by: Mr. Negative | Jun 1, 2021 11:57:44 AM
Now we can go and spend more money in the states instead of here in our own country.
Posted by: Sydney | Jun 1, 2021 2:01:35 PM
I am a supporter of the Canadian economy but when you only live two miles to the Safeway in the US and frying chicken is 77 cents a pound versus 2.79 a lb. in Canada it is very tempting to shop in the US, especially for us who live on a tight budget. Some of us are having to look to ways to stretch the buck. My car insurance just went up. When I renewed I thought it seemed significantly higher and the agent said yes, there was a small increase. Two hundred dollars a year is not a small increase in my books. I know the marketing boards regulate prices to help protect our farmers but maybe they need to take another look.
Posted by: Sarah | Jun 1, 2021 2:49:35 PM
GREAT NEWS!!! As you know here in Vancouver almost everything has gone up in less than a year and we are still expecting higher pricings to come.
At least we can save some money on our groceries
Posted by: beisbol gorras | Jun 4, 2021 2:57:02 AM
Tack för utstationering det. Det är precis vad jag letade efter!
Posted by: Catalyst | Jun 4, 2021 7:37:27 AM
What nonsense. I have to stay overnight to save duty on $200. Am I going to sleep in my car? What is the duty-rate anyways...500%? Unless I live right on the border and I plan to walk to the outlet mall, where are the savings? I won't be asking BMO Capital Markets for investment advice. Eggs might be cheaper, but are they as safe to eat? The BMO spokeman says: "Canadians will flock to the borders en masse". I can hear them now...honk! honk!
Much Ado About Nothing.