Late in August 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 the view of grazing cows at the rural farm in Compton, which provided the milk for one of her shop’s popular cheeses: Alfred le Fermier. She is committed to continuing to purchase this cheese for her shop not only because it is favored by her customers but also because she considers the family behind the product as friends.
Hallman, who is the owner of Formaggio Kitchen, a specialty cheese and artisan goods store in Cambridge, expressed her desire to support her Canadian suppliers and ensure they receive more financial support. She is among many business owners in Canada and the U.S. anxiously waiting to learn whether the Trump administration will implement significant new tariffs on various Canadian products. These entrepreneurs fear that sustained 50 percent tariffs could compel them to sever ties with their trusted Canadian suppliers due to financial constraints.
Imported items, including cheeses, chocolates, spices, and spreads, constitute approximately half of the inventory at Formaggio Kitchen, with Canadian products accounting for about 15 percent of these goods. Hallman has previously managed tariffs on Canadian dairy by either reducing profits, increasing prices for customers, or both. However, she believes that a 50 percent tariff rate would eventually become unsustainable for her business.
Sarah Paxton, another business owner, shares similar concerns about the impact of potential new tariffs on her suppliers in Ontario and Quebec. Despite one of her suppliers offering to cover the tariff costs up to a certain date, Paxton, who co-owns a modern furniture store in Richmond, Va., named LaDIFF, is apprehensive about the long-term effects of a 50 percent tariff rate on her business operations.
The impending U.S. tariffs, scheduled to affect $28 billion worth of Canadian goods if no agreement is reached, have Canadian entrepreneurs on edge. These entrepreneurs worry that American buyers, like Hallman and Paxton, who bear the cost of bringing Canadian goods into the U.S., may seek alternative suppliers if tariffs make the products too expensive.
Representatives from both countries engaged in discussions, with the Prime Minister’s office confirming a conversation between Mark Carney and U.S. President Donald Trump regarding the ongoing trade negotiations. Meanwhile, Hallman took preemptive measures by stocking her shop’s basement “cheese cave” with non-perishable items before the tariff deadline, emphasizing the emotional and financial toll of tariffs on her business.
The uncertainty surrounding the potential tariffs has prompted business owners like Hallman and Paxton to evaluate their relationships with Canadian suppliers and brace for the financial implications of the imposed tariffs.