Late in August of 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 enjoyed a moment of respite on the back veranda at the farmstead in Compton, observing the grazing cows that would eventually yield the milk for one of her shop’s top-selling cheeses: the soft Alfred le Fermier. She is committed to continuing to purchase the cheese for her store not only because it is popular among her clientele but also because she considers the supplier’s family as close friends.
“We aim to assist and provide support to them and increase their earnings,” stated Hallman, the proprietor of Formaggio Kitchen, a specialty cheese and artisanal goods emporium in Cambridge.
Hallman is just one of the many business proprietors in Canada and the United States anxiously anticipating news on whether the Trump administration will enforce significant new duties on a wide array of Canadian goods on Wednesday. Business owners in the U.S. argue that sustained tariffs of 50 percent would compel them to make a difficult decision they have been trying to avoid for over a year and a half: severing ties with long-standing Canadian suppliers due to financial constraints.
Imported items, ranging from cheeses and chocolates to spices and spreads, constitute about half of the inventory at Formaggio Kitchen, with Canadian products representing approximately 15 percent of those items.
Hallman has coped with tariffs on Canadian dairy before by sacrificing profit margins, increasing prices for consumers, or both. While she wishes to continue operating 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 some tough decisions,” Hallman remarked, recounting her journey that took her across thousands of kilometers to various locations in Quebec.
“The dilemma lies in this: we do not want to jeopardize the relationships we have nurtured. However, we also have a threshold for what we can bear as a business and what our customers are willing to pay.”
Similar to Hallman, Sarah Paxton is concerned that the new tariff rate will compel her to part ways with the suppliers her business has relied on in Ontario and Quebec for decades. One of these suppliers, Amisco, extended an offer to share the burden of tariffs until a specified date. Paxton acknowledged that she could handle the additional costs for a limited period but not indefinitely.
“We will strive to persist if feasible. However, a 50 percent tariff is quite substantial,” said Paxton, who co-owns LaDIFF, a contemporary furniture store in Richmond, Virginia.
The latest wave of U.S. tariffs is poised to impact Canadian goods worth $28 billion shortly after midnight unless a last-minute agreement is reached between the two governments.
Canadian entrepreneurs are apprehensive about tariffs potentially eating into their profits if American buyers like Hallman and Paxton — who ultimately foot the bill when importing Canadian goods — are compelled to seek alternate sources.
Representatives from both 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 engaged in discussions with U.S. President Donald Trump that afternoon concerning the “ongoing trade negotiations.”
While awaiting the outcome of looming threats, Hallman stocked her shop’s basement “cheese cave” with as many non-perishable goods as possible before the deadline. She emphasized that the impact of tariffs is not merely financial but also carries emotional weight.
“We are quite resolute,” Hallman stated. “We import these products deliberately because we have a fondness for them. We do not wish for someone to essentially dictate that we cannot import them by imposing such exorbitant tariffs.”
“It sends a very clear and strong message.”
