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. At the farmstead in Compton, Hallman observed the cows grazing, which would later provide milk for their shop’s popular cheese, Alfred le Fermier. Hallman is committed to continuing to purchase this cheese for her store, not only because her customers adore it but also because she considers the supplier’s family as friends.
Hallman, the owner of Formaggio Kitchen, a specialty cheese and artisan goods shop in Cambridge, expressed her desire to support the Canadian suppliers financially. She, like many other business owners in Canada and the U.S., is anxiously awaiting news on whether the Trump administration will impose significant new tariffs on a wide range of Canadian products. If sustained at 50 percent, these tariffs could potentially force business owners to sever ties with their Canadian suppliers, which they have nurtured for years, due to financial constraints.
Imported products, including cheeses, chocolates, spices, and spreads, constitute about half of the inventory at Formaggio Kitchen, with Canadian goods making up approximately 15 percent of those items. Hallman has coped with tariffs on Canadian dairy previously by reducing profits, increasing prices for customers, or a combination of both. However, she believes that a 50 percent tariff rate would eventually become untenable for her business.
Sarah Paxton, co-owner of a contemporary furniture store called LaDIFF in Richmond, Va., shares Hallman’s concerns about the potential new tariffs. She fears that the increased rate might compel her to seek alternative suppliers in Ontario and Quebec, with whom her business has had longstanding relationships. While some suppliers have offered temporary relief by covering the cost of tariffs until a certain date, Paxton acknowledges that sustaining the new fees indefinitely would pose a significant challenge.
The impending U.S. tariffs, set to impact $28 billion worth of Canadian goods if not resolved before midnight, are causing anxiety among Canadian entrepreneurs. The outcome of the ongoing trade negotiations between Canada and the U.S. remains uncertain, with both sides engaged in discussions at the ministerial level. The Prime Minister’s office confirmed an exchange between Mark Carney and U.S. President Donald Trump regarding the trade negotiations.
As the deadline approaches, Hallman has taken precautions by stocking her shop’s basement “cheese cave” with non-perishable items. She views the tariffs not only as a financial burden but also as an emotional one. Hallman emphasized her commitment to the imported products they carry and expressed her reluctance to be restricted by exorbitant tariffs.
The business owners affected by the potential tariffs are closely monitoring the situation, hoping for a favorable resolution to avoid disruption to their longstanding supplier relationships and financial stability.