U.S. retailers fear 50% tariffs could force break with Canadian suppliers

U.S. specialty retailers depend on Canadian producers for cheeses, chocolates, spices and other artisan goods, and a looming 50% tariff on those imports could force a break in long-standing partnerships. Julia Hallman, who runs Formaggio Kitchen in Cambridge, Massachusetts, has previously managed smaller duties by raising prices or accepting lower margins, but says the new rate would eventually become unsustainable. Sarah Paxton, co-owner of the Richmond, Va., furniture store LaDIFF, faces a similar dilemma and notes that a supplier, Amisco, has offered to cover tariffs for a limited period.

Both entrepreneurs stress the emotional and financial strain of potentially ending relationships with Canadian families they consider friends. Government officials from the United States and Canada met at the ministerial level, with Mark Carney speaking to Donald Trump about ongoing trade talks, but no resolution was announced before the deadline. In anticipation, Hallman stocked her shop’s basement with non-perishable items, hoping to buffer any immediate impact.