Economic Struggles for Art Experts as Trump's Imposed Tariffs on Goods from Canada, Mexico, and China Commence
As the new year commenced, President Donald Trump imposed widespread tariffs on major trading partners, including Canada, Mexico, and China. China and Canada have already retaliated with their own tariffs, with Mexico set to follow by Sunday. These tariffs are set to disrupt the art world, potentially hindering gallerists, museum directors, art fair organizers, and art shippers as they scramble to adapt to the new trade landscape.
The tariffs have added complexity, expense, and uncertainty to the selling, transporting, and exhibiting of art, especially after months of planning for significant art events such as Art Basel Hong Kong, Independent, and Frieze New York. Dealers, museum directors, and art fair organizers are expressing concern over the increased costs and potential decline in sales and acquisitions.
Previously, works of art, antiques, and collector's items were duty-free under the US Harmonized Tariff Schedule. However, as of March 4, the US officially implemented tariffs of 25% on all imports from Canada and Mexico, with an additional 10% tariff on imports from China on top of existing duties. These tariffs are taxes paid by importers. There is currently an exemption on import tariffs for artworks from China and Hong Kong to the US, but other art supplies, business supplies, electronics, lumber, event supplies, and inexpensive art-related merchandise manufactured in China will still be subject to the new 10% tariff if they are imported to the US.
Canada and China have also implemented counter-tariffs targeting goods from the US, including "paintings, drawings and pastels, executed entirely by hand," as well as all types of prints and photography. However, "hand-drawn plans and drawings used for engineering, architecture, and other purposes" are excluded.
The new tariffs not only affect Canadian and Mexican artists but also American dealers who represent them. Over 76 Canadian art dealers participated in 28 art fairs in the US in 2024, and several US galleries exhibited at fairs in Canada last year. North American prices for art shipping and transportation are also expected to rise due to the large import and export volumes of lumber, crude oil, and motor vehicle parts between the three countries.
Economic concerns extend beyond the tariffs, as weak foreign exchange rates for Canadian dollars and Mexican pesos further challenge the art market. As of March 4, a $10,000 work would cost CA$14,445 and MX$209,200 before the 25% tariff. With the tariff, the cost balloons to CA$18,056.25 and MX$261,500, not including local, provincial, and federal sales taxes.
The Art Gallery of Ontario in Toronto purchased $1 million in art from galleries in New York and Los Angeles during the 30-day pause in tariffs between Canada and the US. Art gallery director and CEO Stephan Jost highlighted the impact of high tariffs on both curated Canadian art and internationally recognized artists. Meanwhile, prominent collector Beth Rudin DeWoody, who appears on our Top 200 Collectors list, acquired a metal sculpture from a Canadian gallery at Frieze New York.
Gallerists are facing uncertainty over future participation at international art fairs, as increased exposure can be career-changing yet comes with increased costs and complexity. The art world is closely monitoring the situation, hoping for a return to normalcy as the tariffs are discussed and potentially reduced or eliminated.
- The tariffs have made it more challenging for art collectors like Beth Rudin DeWoody to acquire art from galleries, especially those from Canada, due to increased costs.
- dealers, museum directors, and art fair organizers are worried about the potential decline in sales and acquisitions due to the added expenses brought by the tariffs.
- The Art Gallery of Ontario, while purchasing $1 million in art during the tariff pause, is closely monitoring the situation, hoping for a reduction or elimination of the tariffs.
- Other than paintings and drawings, hand-drawn plans and drawings used for engineering, architecture, and other purposes are excluded from the counter-tariffs implemented by Canada and China.
- The art market, already challenged by weak foreign exchange rates, is facing added pressure due to the increased costs and uncertainty brought by the tariffs.
- The art world, which includes gallerists, museum directors, art fair organizers, and curators, is closely watching the developments in the art market due to the disruptive effects of the tariffs.
- Photography, sculpture, and drawing, among other forms of art, are now subject to tariffs in the art market, disrupting the trade landscape and adding complexity and expense to the art industry.
