With the new increase of the duty-free limit, cross-border shopping is looking more attractive than ever.
A May 11 Bank of Montreal report predicts a “notable upswing” in the number of Canadians shopping in the U.S. this summer, despite the 14-percent price gap narrowing from last year’s 20 percent.
However, though shopping in the U.S. offers potential savings, it can also be fraught with pitfalls for someone who plunges in without a plan. Below is some basic information for Canadians looking to shop across the border.
Should I Shop in the U.S.?
• Do you live close to the border? A trip to the States costs gas and—more importantly—time, and uses more of both the farther away you are.
• What products are you planning to buy? Are they significantly more expensive in Canada than the U.S.? Items with a smaller price gap may not be worth the expenditure in time and border fees.
• Where are those products made? Duty differs depending on where an item is manufactured.
• How long will you be staying? The longer you stay, the higher your hotel fees—but also the more goods you can bring back duty- and tax-free.
Compare your savings on goods against your expenses on travel (gas, hotel, duty, and opportunity cost of time) to determine if a trip to the States is for you.
You may also want to consider whether you wouldn’t rather support some of your favourite local businesses.
