Canada's retail industry is warning that raising the duty-free allowance for cross-border shipments could lead to hundreds of thousands of job losses and cut billions of dollars from the Canadian economy. Howe Institute that found a rise in the allowance would have a neutral impact from government revenue. "It basically assumes Canadian retailers, when faced with more competition, will lay off people and essentially not do anything to try and recapture those sales," said Schwanen. He said that while the study accounts for significant cost savings for consumers, it might underplay how much Canadian retailers could benefit. Littler said Canadian retailers already have smaller margins than their U.S. counterparts so have less room to adapt, but that he's encouraged the Canadian government has pushed back on the proposal.

Source: CBC News January 19, 2018 18:04 UTC