Key facts
- President Trump's tariffs on Canadian goods are causing disruption for businesses.
- Ingredients for sprinkles, such as cellulose gum and glucose, are among the items targeted by new tariffs.
- Small companies are struggling to determine if their supply chains are affected by the tariffs.
- Business organizations have criticized the tit-for-tat tariffs.
- Some U.S. small businesses are considering raising prices in response to the tariffs.
President Donald Trump's trade dispute with Canada has created significant uncertainty for small businesses, with new tariffs impacting a wide range of products and supply chains. Rosie Alyea, chief sprinkle officer at Sweetapolita in Toronto, described a "bitter year" as the U.S. blocked cheap imports and then imposed new tariffs on ingredients like cellulose gum and glucose used in her products.
These measures have disrupted sales to American customers and forced businesses like the Penny Ice Creamery in Santa Cruz, California, to quickly assess whether their imported goods would be subject to higher duties. Zach Davis, an owner of the ice cream shop, expressed nervousness about potential 50% tariffs on Canadian confections.
The escalating trade war, characterized by retaliatory duties from both countries, has drawn criticism from business organizations. Dan Kelly, president of the Canadian Federation of Independent Business, stated that small-business owners should not become "cannon fodder." John Arensmeyer, CEO of Small Business Majority, warned of "lasting damage" to U.S. small businesses and noted that some owners are planning to raise prices.
The Trump administration's move to impose tariffs and import bans on certain Canadian goods, including items like mezcal and pony fur, was described as a way to protect American workers, farmers, and manufacturers. However, some of the targeted products are not significantly imported by the U.S. from Canada.