Why a U.S. Rubber Duck Company Moved to Canada Because of Tariffs

• A U.S. rubber duck business moved operations from Washington State to British Columbia to avoid high tariffs on plastic toys imported from China.
• The higher tariffs made the business model unsustainable, forcing the owners to choose between closing the business or relocating to a more viable trade environment.
• By moving just across the border, the company was able to reduce tariff pressure, stay close to its Pacific Northwest customers and continue growing its unique retail business.

How Tariffs Are Changing Where Companies Choose to Operate

Tariffs are increasingly influencing where companies choose to operate. For businesses that rely on imported goods, especially products manufactured in China, higher U.S. tariffs have significantly increased costs and squeezed margins.

In recent years, U.S. tariffs on many Chinese imports have remained high and the rules around exemptions continue to change. That uncertainty makes it difficult for businesses to predict costs or plan long-term strategies. When pricing suddenly shifts because of trade policy, companies have to adapt quickly.

As a result, some businesses are rethinking their location entirely. Instead of absorbing higher costs or raising prices, they look for alternative ways to operate. That might mean moving manufacturing, diversifying supply chains or even relocating part of their business across the border to Canada.

For some companies, operating in Canada while still serving North American customers can provide a more stable environment. When tariffs reshape the economics of a product, geography can become part of the solution.

The Rubber Duck Company That Crossed the Border

A small but memorable example of tariffs influencing business decisions involves a rubber duck company that recently moved its operations from Washington State to Delta, British Columbia.

The business, known for its quirky rubber duck museum and retail shop, had been operating near Point Roberts, a small U.S. community that sits just south of the Canadian border. Like many retailers selling novelty toys, the company relied on rubber ducks manufactured in China.

When U.S. tariffs on plastic toys increased, the cost of importing those products into the United States rose significantly. For a small business built around affordable novelty items, those added costs threatened the viability of the entire operation.

Rather than shut down, the company made a strategic decision. It relocated just across the border to Delta, British Columbia. The move allowed the business to avoid the same tariff pressures while remaining close to its existing customer base in the Pacific Northwest.

Since the move, the company has reportedly seen renewed growth. What began as a tariff problem turned into a cross-border business strategy that allowed the company to keep operating and reach customers on both sides of the border.

Why Tariffs Made the Business Model Unsustainable

The Rubber Duck Museum in Point Roberts depended on two things staying true. Affordable ducks imported from China and a steady flow of Canadian customers. According to OPB, the shop had around 3,000 ducks for sale, most made in China, and the owners were suddenly facing 145% tariffs on those imports. 

At the same time, cross-border traffic from Canada dropped sharply. In March 2025, the number of cars crossing at Blaine, Washington, was down nearly 28% compared with the year before.

That combination is what made the business model unsustainable. The owners said there is only so much customers will pay for a rubber duck, especially when Canadian shoppers are already dealing with exchange rate pressure. Their conclusion was blunt. Moving to Canada was not about convenience. It was the alternative to closing.

Why Moving to Canada Solved the Problem

Relocating to Canada allowed the business to keep operating without the same tariff pressure that had made its U.S. location unsustainable.

By moving just across the border, the company could continue serving many of the same customers while operating under a different trade environment. The relocation also placed the business closer to its Canadian customer base, reducing the reliance on cross-border shopping trips that had become less predictable.

Just as importantly, the move gave the owners a more stable environment to plan and grow the business. Instead of constantly adjusting to shifting tariff rules and trade policy changes, they could focus on running the company and expanding their quirky brand.

In this case, a short geographic move became a strategic solution that allowed the business to survive.

What This Means for Other U.S. Businesses

The rubber duck company’s move may seem unusual, but the underlying lesson is not unique. Tariffs, supply chain shifts and changing trade policies are forcing many U.S. businesses to rethink how and where they operate.

For companies that rely on imported goods, rising costs can quickly erode profit margins. When those pressures combine with unpredictable trade rules, some businesses begin exploring alternatives such as diversifying suppliers, shifting production or establishing operations in another country.

For businesses located near the Canadian border, expanding into Canada can be a practical strategy. It allows companies to remain close to North American customers while operating in a different regulatory and trade environment.

This does not mean every company should relocate. But it does highlight an important point. When global trade rules change, successful businesses adapt their strategy. In some cases, that strategy may include opening or expanding operations in Canada to maintain stability and growth.

How Businesses Can Expand to Canada Strategically

For companies facing tariffs, supply chain disruptions or rising operating costs, expanding to Canada does not always require relocating an entire business. Many companies start with targeted cross-border strategies that allow them to maintain U.S. operations while growing in Canada.

Common pathways include:

• Opening a Canadian branch or subsidiary. This allows a company to establish a physical presence in Canada while continuing to operate in the United States.
• Intra-company transfers. Executives, managers or specialized employees can transfer from a U.S. company to a related Canadian entity to launch or manage operations.
• Startup Visa program. Innovative entrepreneurs may qualify to build and grow their business in Canada with support from designated investors.
• Canadian work permits for key employees. Businesses can bring essential staff to Canada to help establish and expand operations.
• Building a cross-border corporate structure. Some companies create a strategy that allows them to operate on both sides of the border while adapting to different trade environments.

The right approach depends on the company’s industry, supply chain and long-term goals. With proper planning, expanding into Canada can turn trade challenges into new opportunities for growth.

When Trade Policy Changes, Strategy Must Follow

The rubber duck company’s move is a reminder that trade policy can reshape business decisions quickly. When tariffs or supply chain pressures change the economics of a product, companies often need to rethink where and how they operate.

For some businesses, expanding into Canada can offer a practical way to stay close to customers while operating in a different trade environment.

If tariffs or market changes have you reconsidering your next move, book a call with one of our Client Engagement Coordinators. Our team can help you explore cross-border strategies that support long-term growth.