Do the Trump Tariffs Apply to Kajabi Creators?
Episode Summary
In this episode of Kajabi in Five Minutes, we discuss the potential impact of tariffs between Canada and the United States on digital goods and services. While the tariffs focus on physical goods, the exchange rate between the Canadian and U.S. dollar may affect your business. Tune in to learn more about how these changes could influence your use of Kajabi and the creator economy.
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Episode 17 Overview
Introduction
Hello and welcome to Kajabi in Five Minutes. Today, we're going to take a little bit of a sidestep from talking specifically about Kajabi. I wanted to address the tariffs between Canada and the United States. President Trump has announced tariffs, and you might be wondering if this will affect the greater economy.
Impact on Digital Goods
That's a great question. Will it affect you using Kajabi to sell your stuff to Canadians or Americans? Are digital goods like your courses, communities, services, or coaching affected by these tariffs? While I can't give you an absolute answer, as I'm not an accountant or professional in these issues, I certainly have an opinion and am affected by this as well. So, I looked into it and thought I would share my thoughts.
Tariffs and Digital Goods
The short answer is no, the sale of digital goods and services doesn't seem to be included in the scope of these tariffs or duties. Looking at the White House's website, specifically the executive order page, it talks about goods entering the country, particularly Canadian goods going into the United States. It doesn't mention services, only goods. Everything I've read online and from chatting with ChatGPT indicates that these tariffs are always talking about physical goods and products crossing the border physically.
Creator Economy
I don't think the creator economy will be affected by these tariffs directly. Whether you use Kajabi or not, you won't be subject to these taxes if they come into play. I saw something that President Trump deferred all of this because Canada indicated they would strengthen their border security. There's a lot of political stuff going on, and whether these tariffs actually become enforced or not, who knows. But it seems clear they won't affect coaching services, digital goods, or the types of things people usually sell with Kajabi or other online platforms. That's great news for us.
Exchange Rate Impact
One thing to consider is the effect of these tariffs on the exchange rate between the Canadian and U.S. dollar. Whether you're buying a physical good, digital good, or service, you use money. If you have a client on the other side of the border, the exchange rate will impact their purchase. The exchange rate has definitely changed since President Trump was elected. On February 2nd, just the day after the executive order was given on February 1st, the exchange rate spiked up quite a bit. The Canadian dollar is devaluing against the U.S. dollar. This means Canadians buying U.S. stuff will find it more expensive, and Americans buying Canadian stuff will find it less expensive. However, this fits into your business, it's nice to be aware that the currency between these two countries is changing. While you might not be taxed by the tariffs, keep that in mind.
Conclusion
It's great to know that those of us in the digital creator economy are not going to be affected by these tariffs directly. That's all I've got for you today. Tune in to another great episode of Kajabi in Five Minutes for the next one.
