The Globe and Mail reports in its Friday edition that a growing number of businesses are rerouting U.S.-bound shipments from China to Canada to avoid crushing tariffs in hopes of a swift resolution to the escalating trade war. The Globe's Mariya Postelnyak writes, however, that the approach risks flooding the Canadian market with their discounted goods and raising competition for already scarce warehouse storage. Flexport, a platform that co-ordinates global logistics, reported a 50-per-cent spike in consignments from China to Canada in just one week in mid-April. Customs brokers and other industry specialists are also seeing a surge in consumer packaged goods, chemical and automotive supply companies rushing to hoard inventory in Canada. Even Amazon and Walmart's third party sellers have been hoarding goods in the country. Their strategy: storing goods in Canadian warehouses, including bonded storage facilities where imported items can be held without immediate payment of duties -- all in hopes that the Trump administration rolls back tariffs as high as 145 per cent. However, many customs players advise against hoarding in Canada, since a quick resolution to President Donald Trump's trade war is speculative at best.
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