East Toronto business owners voice concerns over tariffs and ‘trade war’ between Canada and the United States

By MATTHEW STEPHENS

Small business owners across East Toronto are voicing a shared concern over their ability to maintain stable operations in the wake of 25 per cent trade tariffs imposed on Canadian goods by the United States government earlier this week.

“We are not over the pain of COVID forced closures, and now an economic war like we’ve never seen before. The pain is crushing, and small businesses like ours, after 40 years, can no longer make rent,” said Peter Martineau, owner of The Beacher Cafe at 2162 Queen St E.

Stephanie Kaptein, owner of Ampersand Bakehouse at 1808 Danforth Ave., shared Martineau’s sentiment that tariffs coming off the heels of the COVID-19 pandemic in 2020 and 2021 will negatively impact small businesses even further.

Kaptein is also worried that prices at her bakery may increase if she cannot find a new supplier for some of her products; other items might have to be taken off the menu altogether.

“Menu items will either have to be removed and/or prices increased. Like myself, many food entrepreneurs pursue their businesses because they have a passion for food. With the tariffs coming so soon after COVID, it’s going to be difficult for small businesses to survive,” said Kaptein.

At midnight on Tuesday March 4, U.S. President Donald Trump moved forward with his plans to impose 25 per cent levies on the import of most Canadian and Mexican goods into his country, with the exception of energy products such as oil and natural gas, which have a 10 per cent rate – as well as doubling the levy on Chinese goods.

In a statement posted on The White House website, President Trump implemented the tariffs on Canada and Mexico to “safeguard the nation” and “combat the extraordinary threat to U.S. national security, including our public health posed by unchecked drug trafficking.” 

Since tariffs were first announced by the American government back in early February, provincial government agencies responsible for alcohol distribution in Canada, including the Liquor Control Board of Ontario, have been pulling American products from their shelves. Canadian retail chains and grocers are also highlighting goods that are made in Canada due to customer demand.

Fearless Meat owner David Brown said he has started looking into alternative, Canadian based options for the food sold at his Kingston Road restaurant.

“We’re taking a look at the items that we originate from the U.S. and trying to replace them with equivalent or superior products that are made in Canada,” said Brown.

For other local small businesses that rely heavily on American products, shifting their inventory procurement away from the United States has proven to be more difficult. 

“The very act of shopping around for new suppliers (for your entire inventory) takes a lot of time entrepreneurs already don’t have. Product margins are already incredibly tight, so there isn’t room to absorb costs if an alternative cannot be found,” said Kaptein.

Ashley Jacot De Boinod is the owner of local bakery Glory Hole Doughnuts at 1505 Gerrard St. E. She believes that renters and business owners in the city already face significant financial challenges, and that imposed tariffs will only exacerbate the cost of living and affordability crisis in Toronto.

“With the affordability crisis already being a huge challenge for Torontonians, the newly implemented tariffs will no doubt be another variable affecting people’s lives,” said Jacot De Boinod.

In response to the announced U.S. tariffs, Canada is also implementing retaliatory tariffs on a large amount of items that come into Canada from south of the border.

The U.S. tariffs will impact local business owners like Hayley Mullins, the inventor of the Joeyband (a maternity skin-to-skin support shipped worldwide), who has spent years establishing strong relationships with buyers in America.

“Ninety per cent of our revenue comes from U.S.A. hospitals – so the tariffs will impact labour and delivery wards, as well as NICUs (Neonatal Intensive Care Units), since the purchaser covers shipping and import costs,” said Mullins.

According to Mullins, the Joeyband is a patented (meaning there is no equal U.S. alternative available for customers) Class 1 Medical Device sourced and manufactured in Canada. In order to get her product to the American market, she said she will now have to compensate for increased costs from tariffs.

“We have built a reputation on keeping pricing fair, and the Joeyband accessible for newborns, their families, and clinicians, so we will absorb the tariff cost with our distributors and are evaluating the best way to manage this in the long run,” said Mullins.

For bar owner Ryan Lucier of Lloyds on Queen (1298 Queen St. E.), keeping things local has helped his business steer clear of tariff anxiety.

“Aside from our bourbon collection, most of our products at Lloyd’s are locally brewed/distilled, so this won’t have a major impact on us (aside from the overall economic impact on Canada as a whole). Even most of the ‘American’ beer we carry is brewed right here in Canada,” said Lucier.

“I do hope this all gets settled in a timely manner for the sake of both the Canadian and American economies. I think both countries are better off when we work together, while limiting trade barriers as much as possible.”

Like Lucier, Brown believes that small businesses need to work harder to navigate the financial uncertainty of Canadian and American tariffs by keeping product procurement local, and by keeping customers in the loop about where their inventory comes from.

“There’s really so much uncertainty out there right now. I advise business owners to cut costs wherever they can – do things as economically as possible. Also, try to emphasize the fact that they’ve got Canadian products,” said Brown.

Jacot De Boinod said that now more than ever, it’s important for members of the community to prop up the economy by shopping local to support small businesses.

“We are urging the public to stick to their guns on shopping Canadian. If we all pull together, our money stays local, which contributes to a healthy economy, or rather, a less unstable one,” said Jacot De Boinod.

At the time of reporting, Prime Minister Justin Trudeau’s government is not open to lifting any of Canada’s retaliatory tariffs as long as President Trump continues with his tariffs on products made in our country.