Late last August, 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 grazing on the farm in Compton, which would later contribute milk for one of her shop’s popular cheeses, the soft Alfred le Fermier. She is committed to continuing to purchase the cheese for her store not only because of customer demand but also because she considers the suppliers as friends.
Numerous business owners in both Canada and the United States are anxiously awaiting news on whether the Trump administration will impose significant new tariffs on a wide range of Canadian products this Wednesday. Entrepreneurs in the U.S. say that sustained tariffs of 50 percent would compel them to make a difficult decision they have been trying to avoid for over a year and a half: severing ties with long-standing Canadian suppliers for financial reasons.
Imported items, including cheeses, chocolates, spices, and spreads, make up roughly half of the inventory at Formaggio Kitchen, with Canadian goods accounting for about 15 percent of those products. 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 would eventually become unsustainable for her business.
Similarly, Sarah Paxton is concerned that the new tariff rate may necessitate a shift away from suppliers her business has relied on in Ontario and Quebec for many years. One of these suppliers, Amisco, offered to share the burden of tariffs until a specified date, but Paxton believes that coping with the new fees independently will only be feasible for a limited period.
The impending U.S. tariffs are anticipated to impact $28 billion worth of Canadian goods if a last-minute agreement is not reached between the two governments. Canadian entrepreneurs fear that these tariffs could significantly impact their profits if American buyers like Hallman and Paxton, who ultimately foot the bill when importing Canadian goods, are forced to seek alternatives.
Representatives from Canada and the U.S. recently held what was expected to be the final ministerial-level meeting on Monday. The Prime Minister’s office confirmed that Mark Carney spoke with U.S. President Donald Trump about the ongoing trade negotiations. Businesses like Formaggio Kitchen are preparing for the potential impact of the tariffs, with Hallman stocking her shop’s basement “cheese cave” with non-perishable goods before the deadline. The emotional and financial toll of tariffs is a major concern for these business owners, who are passionate about the products they import and are hopeful for a positive resolution in the trade negotiations.