Blogs > Navigating U.S. Tariffs: How They Impact Canadian Sweepstakes and Prize Promotions
February 3, 2025 Jing Yu
Running a sweepstakes in Canada can be an exciting way to engage your audience and build brand awareness. However, if your promotion involves prizes from the United States, tariffs imposed by the U.S. on Canadian goods—or vice versa—can have a significant impact on costs and logistics. Understanding these tariff implications can help businesses plan more effectively and avoid unexpected expenses.
Tariffs are taxes imposed on imported and exported goods between countries. The United States and Canada have a complex trade relationship, and various tariffs can influence the cost of goods crossing the border. While some products are duty-free under trade agreements like the USMCA (United States-Mexico-Canada Agreement), others may be subject to additional charges. For companies running sweepstakes, these tariffs can affect the overall value of prizes and shipping expenses.
U.S. tariffs can introduce unexpected hurdles for Canadian sweepstakes organizers, but with careful planning, businesses can successfully navigate these challenges. By understanding the cost implications, anticipating delays, and ensuring legal compliance, companies can run smooth and engaging promotions that leave winners excited rather than burdened by additional costs.
If you’re planning a sweepstakes that involves cross-border prizes, consider consulting a trade specialist or legal expert to avoid any costly surprises. With the right strategy, your sweepstakes can remain a powerful marketing tool while staying compliant with international trade regulations.
Jing Yu, February 2025