Trump calls Canadians shoe smugglers

‘Canada’s not going to take advantage’ of U.S. any longer, he warns

WASHINGTON— U.S. President Donald Trump has called Canada “brutal,” accused Canada’s prime minister of being “weak,” and taken aim at Canada’s supply management system for dairy.

Now he is calling Canadians shoe smugglers.

In the latest salvo in the president’s multi-front attack on Canadian trade practices, Trump told a story Tuesday about Canadians who cross the U.S. border to buy shoes.

The tale left trade experts and apparel industry officials scratching their heads.

Trump launched into it while delivering a rambling speech, focused on illegal immigration, to the National Federation of Independent Businesses.

“There was a story two days ago in a major newspaper talking about people living in Canada coming to the United States and smuggling things back into Canada because the tariffs are so massive. The tariffs to get common items back into Canada are so high that they have to smuggle ’em in,” Trump said, apparently referring to an essay in the New York Post by Canadian journalist Isabel Vincent. “They buy shoes, then they wear them. They scuff ’em up. They make them sound old or look old. No, we’re treated horribly.”

There was a grain of truth to the story. Crossing the border to shop in the U.S. and then sneaking an item or two past customs on the way back is a time-honoured Canadian pastime.

But there is no indication that any of this has anything to do with tariffs.

And Trump’s claim that this shop-and-hide practice results in the U.S. being mistreated makes no sense at all, trade and apparel experts said.

The Footwear Distributors and Retailers of America, the U.S. industry’s lobby group, said in a statement: “The president seems misinformed about footwear trade.”

“On behalf of the American footwear industry, we welcome anyone from anywhere to come and purchase shoes in America. It helps both our brands and retailers grow. Period,” the group said.

“We don’t care where they wear them, and if they get scuffed up all the better so we can sell them more.”

Under NAFTA, there are no Canadian tariffs on shoes manufactured in the U.S.

Since more than 95 per cent of shoes sold in the U.S. are made abroad, any Canadian shoppers avoiding Canada’s tariffs upon their return home are actually avoiding tariffs on foreignmade items, mostly made-in- Asia goods.

In other words, Trump was complaining about Canadians spending money at U.S. stores and then refusing to pay the Canadian government for goods made in other countries — a process that does not victimize the U.S. in any way.

“There doesn’t seem to be an issue. I’m not sure why we’re talking about this. Yet again, we’re being led down this path when there really isn’t anything there,” said Bob Kirke, executive director of the Canadian Apparel Federation. “I feel like I’m going down the rabbit hole here.”

In a tweet to Prime Minister Justin Trudeau, the U.S. industry group added: “The US Footwear Industry welcomes you and all Canadians to come buy shoes in America! As many as you want — and scuff them up if you want, we can sell you more!”

Kirke said he doesn’t think “there’s any negotiation or dis- cussion around footwear tariffs or rules of origin in the current NAFTA negotiation. Zero. Zip.”

And he said lower shoe prices in the U.S. are a result of the competitiveness of the U.S. retail market, not tariffs.

“Both countries have tariffs on imported footwear,” said Karl Littler, vice-president of public affairs at the Retail Council of Canada. “His critique of Canada he might level at the U.S. system as well.”

Canadians don’t have to pay duties on their first $200 in purchases if they’re in the U.S. for 24 hours. They get an $800 exemption if they’re away 48 hours.

Another cross-border shopping issue has been significant in NAFTA talks: Canada’s $20 threshold, one of the lowest in the world, for duties on shipments mailed from abroad.

The U.S. threshold is $800, and the Trump administration has called on Canada to raise its own.