Canadian & U.S. Small Businesses Brace for 50% Tariff Shock
The U.S. trade delegation and Canadian authorities just sealed a deal imposing 50% duties on a wide array of Canadian goods. The move is already causing worrisome headlines for merchants who have built a major part of their revenue from the neighbouring country.
Cindy Baldassi, a Calgary‑based jeweller who relies on American customers for more than three‑quarters of her sales, warns she may lose half her business if the tariffs remain in place. “It’s likely that it will wipe out most of my U.S. sales,” she told reporters, adding that a portion of her products—amethyst, sea glass and agates—are now subject to the newly imposed duty.
Other companies in North America echo the threat. Lind Furniture, which supplies leather furnishings to major U.S. retailers, saw sales fall sharply when tariffs first entered the picture in 2025. “People put purchases on hold,” the shop’s general manager, Michael Saifer, said of the sudden policy shift.
Across the border, Canadian key‑chain maker Outclass founder Matteo Sgaramella explained that orders placed a month in advance will be hit with a new 50% surcharge. “If I contact them now and tell them… they’ll say ‘no way, don’t ship it,’” he added. He notes the company’s U.S. wholesale and e‑commerce segments together account for about 20% of revenue.
In Bellingham, Washington, Northwest Yarns and Mercantile’s craft shop reported a 20% drop in Canadian customers since the last trade clash. Owner Heather Seevers said shoppers complained about anti‑Canadian rhetoric, prompting the shop to launch a fundraising push to stay afloat. “It’s going to take years to rebuild the relationship,” she said.
On the other side of the border, Portland’s Paloma Clothing, run by Mike Roach and Kim Osgood, has a bestseller—a $59 pillow—that would require a 50% markup to continue covering costs. The couple is weighing whether to hold the price for customers or absorb additional cost. “Gift items are price‑point sensitive; people know their budget,” Roach told reporters.
U.S. tariffs hit roughly 20% of Canadian exports by value, a proportion that matters because 70% of Canadian trade is bound for the U.S. The promise of a “dollar‑for‑dollar” response from Canada adds to the uncertainty. Most businesses are bracing for a period where higher prices and reduced demand will pressure margins, while hoping political developments will counteract the immediate fallout.
