Late in 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. While at the farmstead in Compton, Hallman enjoyed observing the grazing cows, which were the source of milk for one of her shop’s popular cheeses, the supple Alfred le Fermier. She is committed to continuing to purchase this cheese for her store not only because of customer demand but also due to the close friendship she shares with the supplier family.
“As a business owner, our goal is to support them and ensure they receive fair compensation,” stated Hallman, who is the owner of Formaggio Kitchen, a specialty cheese and artisan goods store in Cambridge.
Numerous business owners in both Canada and the United States are anxiously awaiting news on whether the Trump administration will impose significant new tariffs on a wide range of Canadian products. Business owners in the U.S. express concerns that sustained 50 percent tariffs could compel them to sever longstanding relationships with Canadian suppliers, a decision they have been striving to avoid for over a year and a half, purely for financial reasons.
Imported items such as cheeses, chocolates, spices, and spreads constitute approximately half of the inventory at Formaggio Kitchen, with Canadian products representing about 15 percent of these goods. Hallman has previously managed tariffs on Canadian dairy by reducing profits, increasing prices for customers, or a combination of both approaches. However, she believes that a 50 percent tariff rate would eventually become unsustainable for her business.
“There will come a point where we may need to make some difficult decisions,” remarked Hallman, reflecting on her extensive trip to various locations in Quebec.
Maintaining a similar sentiment, Sarah Paxton expressed worries that the proposed new tariff rate could compel her to seek alternative suppliers after decades of sourcing from businesses in Ontario and Quebec. While one of her suppliers, Amisco, has offered to cover the tariff costs until a specified date, Paxton acknowledges that sustaining these additional expenses indefinitely may not be feasible.
“We will try to persevere if possible. However, a 50 percent tariff is a substantial figure,” said Paxton, who co-owns a modern furniture store called LaDIFF in Richmond, Virginia.
The impending U.S. tariffs are poised to impact approximately $28 billion worth of Canadian goods unless a last-minute deal is reached between the two governments. Canadian entrepreneurs are concerned that these tariffs could significantly diminish their profits if American buyers, like Hallman and Paxton, who bear the costs of importing Canadian goods, are forced to seek alternative sources.
Representatives from Canada and the U.S. convened for what was anticipated to be the conclusive ministerial-level meeting on Monday. The Prime Minister’s office confirmed that Mark Carney engaged in discussions with U.S. President Donald Trump concerning the ongoing trade negotiations.
Facing the uncertainty of potential threats, Hallman took proactive measures by stocking her store’s basement “cheese cave” with non-perishable items before the tariff deadline. She emphasized that the impact of tariffs is not merely financial but also emotional.
“We are quite determined. We intentionally import these products because we cherish them. We do not want someone to dictate that we cannot import them by imposing such exorbitant tariffs,” Hallman emphasized.
“It sends a very clear and resounding message.”