Late last August, Julia Hallman and her husband 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, which would later provide the milk for one of her shop’s popular cheeses, Alfred le Fermier. She is committed to continuing to purchase this cheese for her store not only because it is favored by her customers but also because she values the relationship with the supplier as friends.
Hallman, the owner of Formaggio Kitchen, a specialty cheese and artisan goods store in Cambridge, is among many business owners in both Canada and the U.S. anxiously awaiting news on whether the Trump administration will impose significant new tariffs on various Canadian goods. Business owners in the U.S. fear that sustained 50 percent tariffs could compel them to sever longstanding and mutually beneficial relationships with Canadian suppliers due to financial constraints.
Imported items, including 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 navigated tariffs on Canadian dairy by either reducing profits, increasing prices for customers, or both. However, she believes that a 50 percent tariff rate would eventually become unmanageable for her business.
Sarah Paxton, another business owner, shares Hallman’s concerns. The potential new tariff rate may require her to seek alternative suppliers in Ontario and Quebec after decades of working with them. Although one supplier offered to cover the tariff costs temporarily, Paxton is uncertain about the sustainability of absorbing the increased fees indefinitely.
The latest round of tariffs by the U.S. is slated to impact $28 billion worth of Canadian goods unless a last-minute agreement is reached between the two governments. Canadian entrepreneurs fear that these tariffs could significantly impact their profits if American buyers, like Hallman and Paxton, who ultimately bear the costs when importing Canadian goods, are forced to seek alternatives.
Representatives from Canada and the U.S. held a crucial meeting on Monday at the ministerial level in an attempt to resolve the looming tariff issue. Prime Minister Mark Carney also engaged in discussions with U.S. President Donald Trump regarding the ongoing trade negotiations.
As they await the outcome of these negotiations, Hallman has taken proactive measures by stocking her store’s basement “cheese cave” with non-perishable goods before the tariff deadline. She emphasizes the emotional and financial toll of the tariffs, expressing strong determination to continue importing products that she loves, despite the potential obstacles posed by exorbitant tariffs.