Tariffs And Canadian Art

How Will Tariffs Affect the Buying and Selling of Canadian Art?

The impact of new tariffs imposed by both the U.S. and Canada on the contemporary Canadian art market remains uncertain. Traditionally, trade barriers like tariffs do not apply to art—in U.S. law, artwork is duty-free. However, during his first administration, Trump introduced a 25% tariff on all Chinese goods, including art, signaling that art is not always immune to economic protectionism.

While art has not yet been listed among goods subject to the new U.S. tariffs, Canada’s retaliatory tariffs already include art on its list. This raises questions about how these economic changes might influence cross-border art sales.

How Might Tariffs Affect Art Sales?

Higher prices for everyday goods often lead to reduced disposable income, potentially causing some would-be art buyers to pause their purchasing plans. This could be more pronounced in Canada, where the Canadian dollar has been declining relative to the U.S. dollar. Despite these economic pressures, it is unlikely that tariffs will greatly affect the willingness of serious collectors to buy art. Many high-net-worth individuals remain confident in their financial standing and continue to invest in art.

Simon Bentley, a Toronto-based dealer and ADAC board member, sees a silver lining in the situation: “We need Canadians to buy Canadian art and not just look to buy art by artists in the United States.” This sense of national support for homegrown talent could bolster the domestic market. Rob Cowley, president of Cowley Abbott auction house, echoes this sentiment, highlighting a growth in interest in post-war Canadian art and the company’s expanding international art department.

The Artist’s Bottom Line

For artists, the bigger concern may be the rising cost of art materials. Tariffs on supplies could force artists to absorb additional costs or adjust their selling prices to compensate. This creates a tricky balance: keeping prices competitive while maintaining the value of their work.

Who Pays the Cost of Tariffs on Art?

In most cases, the U.S. importer pays tariffs, passing the extra cost onto consumers through higher prices. However, when it comes to artwork, the collector or buyer often acts as the importer, meaning they would shoulder the 25% tariff directly.

Let’s break this down:

• An original painting priced at $7,500 CAD currently converts to approximately $5,167 USD.
• If purchased by a U.S. client, a 25% tariff would push the total cost to $6,458.75 USD.

While artists or galleries may offer small discounts (typically 5-10%) for multiple purchases or to attract new collectors, significant markdowns are rare. Art holds its value, and both artists and galleries work hard to maintain pricing integrity.

What Can Artists and Galleries Do?

Given the uncertainty surrounding tariffs, Canadian artists and galleries may consider a few strategies:

• Strengthening the domestic market by encouraging Canadian collectors to invest in homegrown talent.
• Building relationships with international buyers by offering small incentives like complimentary shipping.
• Highlighting the lasting value of art, reassuring collectors that investing in original works remains a wise and meaningful decision.

The Time to Buy Art is Now

With the potential for rising costs on the horizon, now is the time to invest in Canadian art. Whether you are a seasoned collector or a first-time buyer, purchasing art today not only supports the artists creating meaningful work but also helps to safeguard your investment against future price hikes.

Explore the vibrant world of contemporary Canadian art. Let your collection grow and your walls tell a story—one brushstroke at a time.

Don’t wait for tariffs to dictate the price of art. Invest in a piece you love today.