Late in August of 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 the view of the grazing cows on the farm in Compton, the same cows that would produce the milk for one of her shop’s popular cheeses, the soft Alfred le Fermier. She is committed to continuing to purchase this cheese for her shop not only because her customers adore it but also because she considers the family behind it as her friends.
Hallman, the owner of Formaggio Kitchen, a specialty cheese and artisan goods store in Cambridge, expressed her desire to support the Canadian suppliers financially to maintain their partnership. Many business owners in both Canada and the United States are waiting anxiously to hear if the Trump administration will impose significant new tariffs on numerous Canadian goods. A sustained 50% tariff would compel entrepreneurs to make the difficult decision they have been avoiding for over a year and a half: severing ties with long-standing Canadian suppliers in favor of their financial stability.
A substantial portion of the products at Formaggio Kitchen, including cheeses, chocolates, spices, and spreads, are imported, with Canadian items constituting approximately 15% of the inventory. Hallman has previously managed Canadian dairy tariffs by reducing profits, increasing prices for customers, or both. However, she believes that a 50% tariff rate would eventually become unsustainable.
Sarah Paxton, co-owner of a contemporary furniture store in Richmond, Va., named LaDIFF, shares Hallman’s concerns about the potential impact of the new tariffs on her business. She fears that the increased rate may force her to end relationships with suppliers in Ontario and Quebec that her business has relied on for decades.
The latest round of U.S. tariffs is scheduled to affect $28 billion worth of Canadian goods unless a last-minute agreement is reached between the two governments. Canadian entrepreneurs are anxious about the potential loss of profits if American buyers like Hallman and Paxton, who ultimately bear the cost of importing Canadian goods, are forced to seek alternatives.
Representatives from both Canada and the U.S. recently engaged in what was anticipated to be a crucial ministerial-level meeting. The Prime Minister’s office confirmed that Mark Carney held discussions with U.S. President Donald Trump regarding the ongoing trade negotiations.
In anticipation of the looming threat, Hallman took precautions by stocking her shop’s basement “cheese cave” with as many non-perishable items as possible before the deadline. She emphasized that the impact of tariffs is not just financial but also emotional, as they threaten the intentional importation of products that she and her customers cherish.
Despite the challenges, business owners like Hallman and Paxton remain hopeful for a positive resolution that would allow them to sustain their relationships with Canadian suppliers and continue providing their customers with high-quality goods.