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 grazing cows at the farmstead in Compton that would later supply the milk for one of her store’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 customers but also because she considers the family as her friends.
“As a business owner, we want to support them and increase their revenue,” explained Hallman, the owner of Formaggio Kitchen, a specialty cheese and artisan products store in Cambridge.
Hallman is among many business owners in Canada and the United States anxiously awaiting news on whether the Trump administration will impose significant new tariffs on a wide range of Canadian goods. Entrepreneurs in the U.S. state that enduring 50% tariffs would potentially lead them to make the difficult decision they have been avoiding for over a year and a half: severing ties with long-standing Canadian suppliers to safeguard their financial stability.
Imported items, including cheeses, chocolates, spices, and spreads, constitute approximately half of the products at Formaggio Kitchen, with Canadian goods accounting for about 15% of those items.
Hallman has previously managed Canadian dairy tariffs by sacrificing profits, increasing prices for customers, or both. While she aims to continue this approach, she believes a 50% tariff rate would eventually become unsustainable.
“There will be a time when we will have to make some tough decisions,” remarked Hallman, whose journey took her thousands of kilometers to various stops in Quebec.
“The challenge lies in not wanting to jeopardize the relationships we have built. However, we also have a limit to what we can manage as a business and what our customers are willing to pay.”
Sarah Paxton, co-owner of a contemporary furniture store in Richmond, Virginia, named LaDIFF, shares Hallman’s concerns about the potential impact of the new tariffs on her business. Paxton fears that the increased rate may compel her to seek alternative suppliers in Ontario and Quebec, with whom her business has been associated for decades.
Like Paxton, many Canadian entrepreneurs are apprehensive about the tariffs significantly affecting their profits if American buyers, such as Hallman and Paxton, are compelled to source products from elsewhere due to the increased costs.
Representatives from 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 that Mark Carney engaged in discussions with U.S. President Donald Trump concerning the ongoing trade negotiations.
Hallman, in preparation for the looming threat, filled 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 just financial but also emotional.
“We are quite determined. We import these products deliberately because we adore them. We do not want someone to dictate that we cannot import them by imposing such exorbitant tariffs,” Hallman expressed.
“It sends a clear and strong message.”