Late in August of last year, Julia Hallman and her spouse embarked on a road trip from their residence in Massachusetts to visit one of their Canadian suppliers at Fromagerie La Station in Quebec. Hallman enjoyed observing the cows on the farm in Compton, knowing they would supply the milk for one of her shop’s popular cheeses, the supple Alfred le Fermier. She is committed to continuing to purchase this cheese for her store not only because it is well-loved by customers but also because she values the supplier as friends.
Business owners in both Canada and the U.S. are anxiously awaiting news on whether the Trump administration will implement significant new tariffs on a variety of Canadian goods. Entrepreneurs in the U.S. fear that sustained 50% tariffs could force them to sever ties with their long-standing Canadian suppliers due to financial constraints.
Imported products, including cheeses, chocolates, spices, and spreads, make up around half of the inventory at Formaggio Kitchen, with Canadian goods accounting for about 15% of those items. Hallman has navigated previous Canadian dairy tariffs by compromising on profits, increasing prices for customers, or both. However, she believes that a 50% tariff rate would eventually become unmanageable for her business.
Sarah Paxton, co-owner of a contemporary furniture store in Richmond, Va., shares similar concerns about the potential impact of the new tariffs. She worries that the increased rate may compel her to seek alternative suppliers in Ontario and Quebec after relying on them for decades.
The latest round of tariffs by the U.S. is expected to affect $28 billion worth of Canadian goods if a last-minute deal is not reached between the two governments. Canadian entrepreneurs are concerned that these tariffs could significantly reduce their profits if American buyers, such as Hallman and Paxton, are forced to look elsewhere for sourcing goods from across the border.
Representatives from Canada and the U.S. recently engaged in what was anticipated to be the final ministerial-level meeting. Prime Minister Mark Carney had discussions with U.S. President Donald Trump regarding the ongoing trade negotiations.
As the deadline approaches, Hallman took precautionary measures by stocking her shop’s basement “cheese cave” with non-perishable items. She emphasized that the impact of tariffs is not just financial but also emotional for businesses like hers, which value the products they import and the relationships they have built with suppliers.