Late in August 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 observed the cows on the farm in Compton that provide the milk for one of her store’s popular cheeses, Alfred le Fermier. She is committed to continuing to purchase the cheese for sale at her store not only because it is beloved by customers, but also because she considers the family as friends.
Hallman, the owner of Formaggio Kitchen, a specialty cheese and artisan goods store in Cambridge, expressed her desire to support and contribute more income to their Canadian suppliers. She is among numerous business owners in the U.S. and Canada eagerly awaiting news on whether the Trump administration will enforce significant new tariffs on various Canadian products on Wednesday. Entrepreneurs in the U.S. fear that continuous 50 percent tariffs would compel them to sever ties with long-standing Canadian suppliers to protect their financial interests.
Imported items such as cheeses, chocolates, spices, and spreads make up about half of the inventory at Formaggio Kitchen, with Canadian products constituting approximately 15 percent of these goods. Hallman has previously managed tariffs on Canadian dairy by either reducing profits, raising prices for customers, or both. However, she believes that a 50 percent tariff rate would eventually become unsustainable for her business.
Sarah Paxton, co-owner of a modern furniture store in Richmond, Va., called LaDIFF, shares Hallman’s concerns about potentially needing to shift away from suppliers in Ontario and Quebec due to the new tariff rate. While one of her suppliers offered to cover the tariff costs up to a certain date, Paxton worries that managing the increased fees independently may not be feasible in the long term.
The impending round of U.S. tariffs is expected to impact $28 billion worth of Canadian goods if a last-minute agreement between the two governments is not reached. Canadian entrepreneurs are anxious about the potential profit reductions if American buyers like Hallman and Paxton are forced to seek alternative sources due to the tariffs.
Representatives from Canada and the U.S. held a crucial meeting on Monday at the ministerial level, with Prime Minister Mark Carney engaging in discussions with U.S. President Donald Trump regarding the ongoing trade negotiations. As the deadline approaches, Hallman has taken measures to stock her store’s basement “cheese cave” with non-perishable goods in anticipation of the tariff implementation. She emphasizes that the impact of tariffs is as emotional as it is financial, underscoring their commitment to the products they import and the importance of maintaining those relationships.