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 observing the cows grazing at the farmstead in Compton, which would later provide the milk for one of her shop’s popular cheeses, the tender Alfred le Fermier. Her commitment to continue purchasing the cheese for her store is not only due to customer demand but also because she considers the family behind the product as friends.
Hallman, the owner of Formaggio Kitchen, a specialty cheese and artisan goods store in Cambridge, emphasized the importance of supporting her suppliers and ensuring they receive adequate financial support. Many business owners in both Canada and the U.S. are anxiously awaiting news from the Trump administration regarding potential significant tariffs on various Canadian goods. These tariffs, if imposed, could compel entrepreneurs to sever longstanding relationships with Canadian suppliers to safeguard their financial stability.
A substantial portion of Formaggio Kitchen’s inventory, including cheeses, chocolates, spices, and spreads, originates from imports, with Canadian products constituting approximately 15% of these goods. Hallman has previously navigated through tariffs on Canadian dairy by reducing profits, increasing prices for customers, or both. However, she expressed concerns that a 50% tariff rate would eventually become unsustainable for her business.
Similarly, Sarah Paxton, co-owner of a contemporary furniture store in Richmond, Virginia named LaDIFF, is apprehensive about the potential impact of increased tariffs. Paxton has utilized suppliers from Ontario and Quebec for many years, and while some have offered temporary solutions to cover tariff costs, a 50% rate would pose significant challenges for her business operations.
The looming threat of new tariffs on Canadian goods worth $28 billion is causing anxiety among Canadian entrepreneurs, particularly those reliant on American buyers like Hallman and Paxton. The outcome of the trade negotiations between Canada and the U.S. remains uncertain as both parties engage in discussions at the ministerial level. Mark Carney, the Prime Minister, has been actively involved in talks with President Donald Trump to address the trade issues.
In anticipation of potential tariffs, Hallman has taken proactive measures by stocking her store’s basement “cheese cave” with non-perishable items. She emphasized the emotional and financial toll that tariffs could have on businesses like hers, stressing the importance of preserving relationships with beloved products despite the challenges posed by tariffs.