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this post was submitted on 11 Feb 2025
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I agree, but once you sign the contract, you don't have a choice, unless if there's a clause to state that if the import cost changes, you can break the contract. But I strongly doubt most contracts include such a clause. Not that it matters much since as long as the product is delivered, customers are obligated to pay the full cost, including import taxes since they ordered the product in the first place.
And that uncertainty will be causing customers to delay orders or find other suppliers until thw chaos subsides.
To that I agree as well. Actually, several companies did that exactly when Trump first went to office and made his original threats. They already stopped taking new orders from the states due to the uncertainty.
That said, it still has no effect on already signed contracts, unless if the customer goes bankrupt while the deal is active or something (entirely possible considering the situation). Otherwise, the reliability of knowing you can renew your contracts is gone, which is why so much of Canadian products are being renegotiated to go to the EU or east Asia instead.