Late in August last year, Julia Hallman and her husband embarked on a road trip 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 provide 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 of its popularity among customers but also because she considers the supplier’s family as friends.
Hallman, the owner of Formaggio Kitchen, a specialty cheese and artisan goods store in Cambridge, expressed her desire to support her suppliers and ensure they receive more financial support. She, along with numerous business owners in Canada and the U.S., is awaiting news on whether the Trump administration will impose significant new tariffs on various Canadian goods. A sustained 50 percent tariff would compel entrepreneurs to make tough decisions, potentially severing long-standing relationships with Canadian suppliers for financial reasons.
Imported products, including cheeses, chocolates, spices, and spreads, comprise about half of the inventory at Formaggio Kitchen, with Canadian goods making up approximately 15 percent of these products. Hallman has previously navigated 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, a co-owner of a contemporary furniture store in Richmond, Va., named LaDIFF, shares Hallman’s concerns about the potential impact of new tariffs on her business. She fears that the increased tariff rate may force her to seek new suppliers in Ontario and Quebec, despite having long-standing relationships with her current suppliers. While some suppliers have offered to absorb the tariff costs temporarily, Paxton acknowledges that sustaining these fees indefinitely would pose challenges for her business.
The looming threat of $28 billion worth of Canadian goods facing new U.S. tariffs has created anxiety among Canadian entrepreneurs, who fear a significant impact on their profits. The outcome of the last-minute negotiations between the two governments will determine whether American buyers like Hallman and Paxton, who ultimately bear the costs of importing Canadian goods, will need to seek alternative sources.
As both countries engage in critical trade discussions, business owners like Hallman are bracing themselves for potential disruptions. Hallman has taken proactive steps by stocking her shop’s basement “cheese cave” with non-perishable goods ahead of the tariff deadline. She emphasized the emotional toll of tariffs, stating that the decision to import certain products is driven by passion, and the imposition of excessive tariffs challenges that freedom.
The business community remains on edge as they await the outcome of ongoing trade negotiations between Canada and the U.S., recognizing the implications of the decisions on their livelihoods and relationships with suppliers.