Late in August last year, Julia Hallman and her spouse embarked on a long road trip from their residence in Massachusetts to visit one of their Canadian suppliers at Fromagerie La Station in Quebec. Hallman enjoyed the serene view from the back porch of the farmstead in Compton, observing the cows that would eventually supply the milk for one of her shop’s popular cheeses, the soft Alfred le Fermier. She is committed to continuing to purchase this cheese for her shop, not only due to customer demand but also because she considers the supplier family as her friends.
Hallman, the owner of Formaggio Kitchen, a specialty cheese and artisan goods store in Cambridge, expressed her desire to support the Canadian suppliers financially by keeping the business relationship strong. However, like many other business owners in the U.S. and Canada, she is anxiously awaiting news on whether the Trump administration will implement significant new tariffs on various Canadian products. A sustained 50% tariff imposition could potentially force these entrepreneurs to reconsider their longstanding partnerships with Canadian suppliers to safeguard their financial viability.
Imported items such as cheese, chocolates, spices, and spreads constitute approximately half of the inventory at Formaggio Kitchen, with Canadian products making up around 15% of these goods. Hallman has previously managed tariffs on Canadian dairy by either reducing profits, increasing prices for customers, or a combination of both. Nevertheless, she emphasized that a 50% tariff rate would eventually become unsustainable for her business.
Sarah Paxton, who co-owns a modern furniture store called LaDIFF in Richmond, Va., shares similar concerns about the impact of the potential new tariffs. She expressed worries about the financial strain that a 50% tariff would place on her business, potentially necessitating a shift away from her long-time suppliers in Ontario and Quebec.
The looming threat of U.S. tariffs on $28 billion worth of Canadian goods is causing apprehension among Canadian entrepreneurs, as it could significantly affect their profits if American buyers are forced to seek alternative sources. Both Canadian and U.S. officials have engaged in discussions to reach a resolution before the impending deadline, with Prime Minister Mark Carney having conversations with President Donald Trump regarding the ongoing trade negotiations.
As the deadline approaches, Hallman took proactive measures by stocking up her shop’s “cheese cave” with non-perishable items to mitigate the impact of potential tariffs. She emphasized the emotional and financial toll of tariffs, stating that her business intentionally imports products it loves and values. Hallman underscored the importance of maintaining the ability to import these cherished products without facing prohibitive tariffs, viewing excessive tariffs as a hindrance to their business practices.