Late in August 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 observed the cows grazing at the farm in Compton, which supply milk for one of her shop’s popular cheeses, Alfred le Fermier. She is committed to continuing to purchase the cheese for her store not only because customers adore it but also because she considers the family as friends.
Hallman, the owner of Formaggio Kitchen, a specialty store in Cambridge that offers artisan goods and cheeses, along with numerous business owners in Canada and the United States, is anxiously awaiting news on whether the Trump administration will enforce significant new tariffs on various Canadian products. Entrepreneurs in the U.S. express concerns that enduring 50 percent tariffs would push 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 pressures.
Imported items, ranging from cheeses to chocolates, spices, and spreads, constitute around half of Formaggio Kitchen’s inventory, with Canadian products making up approximately 15 percent of these goods. Hallman has navigated previous 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 unsustainable.
Sarah Paxton, who co-owns a contemporary furniture store named LaDIFF in Richmond, Va., shares Hallman’s concerns. She fears that the new tariff rate may necessitate severing ties with suppliers her business has relied on in Ontario and Quebec for decades. While Amisco, one of her suppliers, offered to cover tariff costs until a specific date, Paxton acknowledges that sustaining the new fees independently may not be viable in the long term.
The impending U.S. tariffs are projected to impact $28 billion worth of Canadian goods shortly after midnight if no last-minute agreement is reached between the two governments. Canadian entrepreneurs worry about the potential profit losses if American buyers like Hallman and Paxton, who bear the costs when importing Canadian products, are forced to seek alternative sources.
Representatives from the U.S. and Canada convened on Monday for what was anticipated to be the final ministerial-level meeting. The Prime Minister’s office confirmed Mark Carney’s discussion with U.S. President Donald Trump regarding the “ongoing trade negotiations.”
As they await further developments, Hallman stocked her shop’s underground “cheese cave” with as many non-perishable items as possible before the deadline. For her, the impact of tariffs is not just financial but also emotional. Hallman emphasized their commitment to importing products they love and the disappointment of facing potential restrictions through imposing exorbitant tariffs.
She stressed, “It’s a pretty loud and clear message.”
