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 observed the cows grazing at the farm in Compton, where the milk for one of her shop’s popular cheeses, Alfred le Fermier, is sourced. She is committed to continuing to purchase the cheese for her shop not only because her customers adore it, but also because she considers the family as close friends. “Ultimately, we aim to support them and increase their earnings,” stated Hallman, the owner of Formaggio Kitchen, a specialty store in Cambridge.
Hallman is among the many business proprietors in Canada and the U.S. awaiting news on whether the Trump administration will enforce substantial new tariffs on a wide array of Canadian products. Business owners in the U.S. express that enduring 50 percent tariffs would compel them to make the tough decision they have been avoiding 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, constitute about half of the inventory at Formaggio Kitchen, with Canadian products making up approximately 15 percent of those goods. Hallman has previously coped with tariffs on Canadian dairy by sacrificing profit, increasing prices for customers, or both. While she wishes to persist in this manner, she believes that a 50 percent rate would eventually become unmanageable.
“There will come a time when we will have to make difficult decisions,” Hallman expressed following her extensive trip through Quebec. “The dilemma lies in not wanting to jeopardize the relationships we’ve built. However, we also have a limit to what we can bear as a business and what our customers are willing to pay.”
Similarly, Sarah Paxton is concerned that the new tariff rate will compel her to distance herself from the suppliers her business has relied on in Ontario and Quebec for decades. Amisco, one of her suppliers, offered to share the burden of tariffs until a specific date. While Paxton believes she could handle the new fees temporarily, she is unsure about the long-term sustainability.
“We will attempt to continue if possible. However, a 50 percent tariff is a significant figure,” remarked Paxton, co-owner of LaDIFF, a modern furniture store in Richmond, Virginia. “If you can envision someone dipping into your wallet and taking half of what you possess, that would be incredibly challenging.”
The impending U.S. tariffs are expected to impact $28 billion worth of Canadian goods shortly after midnight if a last-minute agreement is not reached between the two governments. Canadian entrepreneurs fear that tariffs could substantially reduce their profits if American buyers, like Hallman and Paxton, who ultimately foot the bill when importing Canadian goods, are compelled to seek alternatives.
Representatives from Canada and the U.S. held a final ministerial-level meeting on Monday. The Prime Minister’s office confirmed that Mark Carney spoke with U.S. President Donald Trump that afternoon regarding the ongoing trade negotiations.
As she awaits the outcome of potential threats, Hallman stocked her shop’s basement “cheese cave” with as many non-perishable items as possible before the deadline. She emphasized that the cost of tariffs is not just financial but also emotional. “We are quite steadfast,” Hallman stated. “We intentionally import these products because we love them. We do not want someone to essentially prohibit us from importing them by imposing such a severe tariff.”
“It sends a strong and unequivocal message,” she added.