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The Impact of Trump’s 2025 Tariffs on Reverse Logistics in Canada
Executive Summary
On March 4, 2025, the Trump administration officially implemented a 25% tariff on imports from Canada and Mexico, as well as a 10% tariff on Chinese goods. These tariffs are now increasing costs for businesses involved in reverse logistics, staging, imaging, and configuration services.
Companies that:
- Send Canadian-sold products to the U.S. for repair or refurbishment.
- Do staging, imaging, and configuration in the U.S. before shipping to Canada.
Are incurring substantial increases in cost, incurring the additional 10% tariff on Chinese made products (20% total now) which make up the bulk of the consumer and commercial electronics industry.
Tariff Overview
These tariffs, effective immediately, include:
- 25% tariff on all U.S. imports from Canada and Mexico.
- Additional 10% tariff on all imports from China.
- No exemptions or exclusions have been granted.
Key Impacts on Reverse Logistics & Staging Services
1. Keep Products Sold in Canada in Canada for Repair & Refurbishment
Sending a product to the U.S. for repair now means paying a 25% tariff. Instead, businesses should handle **all warranty repairs and refurbishments within Canada**.
2. Import Products from China Directly to Canada
Companies that route electronics shipments from China through the U.S. before distributing to Canada are now paying an additional 10% tariff. Instead, importing directly into Canada eliminates this additional cost.
3. Perform Staging, Imaging & Configuration in Canada
Companies that set up devices in the U.S. before shipping them to Canada now face a 25% tariff on the finished units. Moving these operations to Canada eliminates the tariff and speeds up deployment.
Cost Impact of Tariffs on Reverse Logistics
| Scenario | Tariff Impact | Final Cost |
|---|---|---|
| Sending a $1,000 Canadian-sold, Chinese made product to the U.S. for repair | 20% tariff = $200 extra | Assuming 1000pcs per year: $200,000 total cost before repair and transportation cost |
| A 1000pc deal for $1000 made in China laptops | 20% tariff = $200,000 extra | Your costs are $200,000 higher than your competition because you imported into the US first for staging/config |
Strategic Recommendations
- Perform all repair and refurbishment in Canada to avoid cross-border tariffs.
- Import directly into Canada from China rather than through the U.S.
- Shift staging, imaging, and configuration operations to Canada to eliminate the 25% tariff.
Why Microland?
- Reverse Logistics in Canada: Full repair and refurbishment services **without cross-border tariffs**.
- Direct Import Capabilities: Support for **importing products from China directly into Canada**.
- Staging, Imaging & Configuration Expertise: Setup and deployment **within Canada, avoiding U.S. processing tariffs**.
- Faster Turnaround & Lower Costs: **No customs delays, no extra fees—just streamlined service.**
💡 **Avoid paying unnecessary tariffs. Keep your products in Canada, and let Microland help!**