Late last August, 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 on the farm in Compton, which provide the milk for one of her store’s popular cheeses, the supple 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 as friends.
“We want to support them and ensure they receive more funds,” stated Hallman, the owner of Formaggio Kitchen, a specialty shop in Cambridge. Hallman is among many business owners in Canada and the U.S. eagerly awaiting news on whether the Trump administration will impose significant new tariffs on various Canadian goods. Entrepreneurs in the U.S. emphasize that sustained 50% tariffs would compel them to make a difficult decision they have been avoiding for over a year and a half: severing ties with long-standing Canadian suppliers due to financial constraints.
Imported items such as cheeses, chocolates, spices, and spreads constitute approximately half of Formaggio Kitchen’s inventory, with Canadian products accounting for around 15% of those items. Hallman has previously navigated tariffs on Canadian dairy by sacrificing profits, increasing prices for customers, or both. While she prefers to continue this approach, she acknowledges that a 50% rate would eventually become unsustainable.
“There will come a time when we will have to make tough decisions,” remarked Hallman, who traveled thousands of kilometers to multiple locations in Quebec. “The dilemma is finding a balance between maintaining the friendships we have cultivated and respecting our business’s financial limits and customer willingness to pay.”
Sarah Paxton shares similar concerns to Hallman about the potential new tariff rate that could prompt her to part ways with suppliers her business has relied on in Ontario and Quebec for decades. One of these suppliers, Amisco, offered to share the burden of tariffs until a specified date, but Paxton believes she cannot sustain the new fees indefinitely.
“We will strive to continue if possible. However, a 50% rate is quite substantial,” expressed Paxton, co-owner of LaDIFF, a contemporary furniture store in Richmond, Va. She likened the impact of such tariffs to someone taking half of what one possesses from their wallet, indicating the significant challenge it poses.
The impending U.S. tariffs are set to impact $28 billion worth of Canadian goods shortly after midnight unless a last-minute agreement is 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 forced to seek alternatives.
Representatives from Canada and the U.S. convened on Monday for what was anticipated to be the final ministerial-level meeting. The Prime Minister’s office confirmed to CBC News that Mark Carney spoke with U.S. President Donald Trump that afternoon regarding the “ongoing trade negotiations.”
In anticipation of potential threats materializing, Hallman stocked her shop’s basement “cheese cave” with as many non-perishable items as feasible before the deadline. She emphasized that the cost of tariffs carries both emotional and financial weight.
“We are quite resilient,” stated Hallman. “We intentionally import these products because we love them. We do not want someone to essentially dictate that we cannot import them by imposing such an egregious tariff.”
“It sends a clear and emphatic message.”