Late in August last year, Julia Hallman and her spouse embarked on a road journey from their residence in Massachusetts to visit one of their Canadian suppliers at Fromagerie La Station in Quebec. Hallman observed the cows grazing on the farm in Compton, which would later provide the milk for one of her store’s popular cheeses, the supple Alfred le Fermier. She is committed to continuing to purchase the cheese for her store, not only because it is loved by her customers but also because she considers the family to be her friends.
Hallman, the owner of Formaggio Kitchen, a specialty cheese and artisan goods store in Cambridge, emphasized her desire to assist and financially support her suppliers. She highlighted the importance of maintaining these relationships. However, like many business owners in Canada and the U.S., she is awaiting news on whether the Trump administration will impose significant new tariffs on a range of Canadian products.
A potential 50 percent tariff would present a challenge for businesses like Formaggio Kitchen, where approximately half of the inventory, including Canadian products, makes up around 15 percent of the goods sold. Hallman has previously managed tariffs on Canadian dairy through various means, such as reducing profits or increasing prices for customers. Yet, she acknowledged that a 50 percent tariff would eventually become unsustainable for her business.
Similarly, Sarah Paxton, co-owner of a contemporary furniture store in Richmond, Va., named LaDIFF, expressed concerns about potential new tariffs affecting their long-standing suppliers in Ontario and Quebec. While one of their suppliers offered temporary tariff coverage, Paxton emphasized the difficulty of managing a 50 percent tariff in the long run.
The imminent U.S. tariffs are anticipated to impact $28 billion worth of Canadian goods if a last-minute agreement is not reached. The uncertainty surrounding these tariffs is causing anxiety for Canadian entrepreneurs, as American buyers like Hallman and Paxton, who bear the costs of bringing Canadian goods into the U.S., may need to seek alternative sources.
While representatives from both countries engaged in final-level discussions, Prime Minister Mark Carney spoke with U.S. President Donald Trump regarding the ongoing trade negotiations. Hallman, preparing for the potential tariffs, stocked her store’s basement with non-perishable items ahead of the deadline, emphasizing the emotional and financial toll these tariffs could have on businesses.
As businesses await the outcome, Hallman underscored the importance of their deliberate product selections and their love for the goods they import. The looming threat of substantial tariffs sends a clear message to businesses, prompting them to navigate challenging decisions ahead.
