Exerpted from Politico Pro Canada Newsletter

Alex talked to the head of a Toronto-based logistics company that’s seeing new business as a result of American tariffs against China.

Stalco Inc. says it receives bulk shipments of goods from China and elsewhere. They arrive by sea ports from the Pacific, then get sent east by rail or truck. Later, the company repackages products into individual shipments, and sends them to U.S. customers through Buffalo, N.Y.

How the firm does it: Steven Page, president of Stalco, said many of the products can avoid American duties if they cost less than the U.S.’s $800 duty-free de minimis price. Additionally, he said duties charged by Canada at the original seaport can get refunded once he provides evidence to Canadian authorities that the product has left the country.

He said trans-shipment to avoid U.S. tariffs on China is still a small percentage of his business, but it’s growing and more companies are inquiring about using the method.

Page said he’s gotten the most inquiries about electronics, sunglasses, watches and cellphone accessories, all of which appear on USTR tariff lists.

He said his method also creates business for U.S.-based carriers like UPS and FedEx. “There is an opportunity,” he said. “We’re simply shipping directly to the consumer in the United States, from Toronto.”

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