Late in August of last year, Julia Hallman and her spouse embarked on a lengthy 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 supply the milk for one of her store’s popular cheeses, the supple Alfred le Fermier. She is committed to continuing to purchase this cheese for her store, not only because it is beloved by her customers but also because she considers the supplier’s family as her friends.
Hallman, the owner of Formaggio Kitchen, a specialty cheese and artisan goods shop in Cambridge, expressed her desire to support and financially benefit the Canadian suppliers. She, along with numerous other business owners in both Canada and the United States, is anxiously awaiting news on whether the Trump administration will impose significant new tariffs on a wide range of Canadian products. If these sustained 50 percent tariffs are implemented, entrepreneurs in the U.S. fear they will be forced to sever long-standing, mutually beneficial relationships with Canadian suppliers due to financial constraints.
A substantial portion of the inventory at Formaggio Kitchen consists of imported products, including cheeses, chocolates, spices, and spreads, with Canadian goods representing approximately 15 percent of these items. Hallman has previously managed tariffs on Canadian dairy by reducing profits, increasing prices for customers, or a combination of both. However, she believes that a 50 percent tariff rate would eventually become unsustainable for her business.
Sarah Paxton, who co-owns a contemporary furniture store called LaDIFF in Richmond, Virginia, shares Hallman’s concerns. She worries that the proposed new tariff rate may necessitate finding alternative suppliers in Ontario and Quebec, with whom her business has had decades-long relationships. Although one of her suppliers offered to cover the tariff costs until a specified date, Paxton acknowledges that coping with the new fees independently would present challenges in the long run.
The impending round of U.S. tariffs, set to impact $28 billion worth of Canadian goods, is causing apprehension among Canadian entrepreneurs. If American buyers like Hallman and Paxton, who ultimately bear the cost of tariffs when importing Canadian goods, are forced to seek alternatives, it could significantly impact Canadian businesses’ profits. High-level representatives from both countries recently engaged in what was anticipated to be a conclusive ministerial meeting. Prime Minister Mark Carney’s office confirmed a conversation with U.S. President Donald Trump regarding the ongoing trade negotiations.
While waiting to see the outcome of the looming threat, Hallman took proactive measures by stocking her shop’s basement “cheese cave” with non-perishable items before the deadline. She emphasizes that the impact of tariffs is not only financial but also emotional, as these products are intentionally chosen out of love rather than necessity. Hallman asserts that imposing such exorbitant tariffs essentially restricts their ability to import products they genuinely appreciate, sending a clear and resounding message.
