Late in August of last year, Julia Hallman and her spouse took 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 at the farm in Compton, which produce the milk for one of her store’s popular cheeses, Alfred le Fermier. She is committed to continuing to purchase the cheese for her shop not only because it is beloved by her customers but also because she considers the family behind it as her friends.
Many business owners in Canada and the U.S. are anxiously awaiting news on whether the Trump administration will implement significant new tariffs on various Canadian goods. Entrepreneurs in the U.S. fear that sustained 50 percent tariffs would compel them to sever ties with longstanding Canadian suppliers due to financial pressures, a decision they have been trying to avoid for over a year and a half.
Julia Hallman, the owner of Formaggio Kitchen in Cambridge, explained that imported items, from cheeses to chocolates, account for roughly half of the products in her store, with Canadian goods making up approximately 15 percent of that inventory. She has previously managed Canadian dairy tariffs by sacrificing profits, increasing prices for customers, or both. However, she believes that a 50 percent tariff would eventually become too burdensome to sustain.
Similarly, Sarah Paxton, co-owner of a contemporary furniture store called LaDIFF in Richmond, Virginia, voiced concerns about the potential new tariffs forcing her to seek alternative suppliers in Ontario and Quebec, where her business has sourced products for decades. While one of her suppliers offered temporary tariff coverage, she worries that a 50 percent rate would be unsustainable in the long run.
The looming threat of new U.S. tariffs targeting $28 billion worth of Canadian goods has left Canadian entrepreneurs worried about potential profit losses if American buyers, like Hallman and Paxton, are forced to seek products elsewhere due to increased costs. Negotiations between Canada and the U.S. were ongoing, with the hope of reaching a last-minute deal to avert the tariffs.
As the deadline approached, Hallman took precautions by stocking her shop’s basement “cheese cave” with non-perishable goods to mitigate potential financial impacts. She emphasized the emotional toll of tariffs, expressing her determination to continue importing products she loves despite the challenges posed by escalating trade tensions.
Overall, business owners on both sides of the border are navigating uncertain terrain as they grapple with the potential consequences of new tariffs on cross-border trade relationships.