Bracing for tariffs

By Jason Setnyk
Bracing for tariffs
Angela Youngs, owner of Ground Soap, speaks with CBC reporter Arthur White-Crummey about the impact of U.S. tariffs on her business in Cornwall. (Photo : Submitted)

As the impact of Donald Trump’s U.S. tariffs reverberates through Cornwall’s business community, local leaders and entrepreneurs are voicing their concerns over rising costs, supply chain disruptions, and economic uncertainty.

At LCBO stores, including the two in Cornwall, American alcohol is being removed from shelves by order of Premier Doug Ford. Grocery stores are promoting “Made in Canada” products, and Canadian flags hang prominently in the Cornwall Square Mall. These symbolic shifts reflect a growing push to prioritize domestic products as businesses brace for the effects of a 25% tariff imposed by the U.S. government on Canadian goods.

A Community in Economic Limbo

Cornwall, a border city reliant on cross-border commerce, is particularly vulnerable. One in three businesses in the region has direct trade ties with the U.S. The Cornwall & Area Chamber of Commerce warns that the tariffs could lead to job losses, reduced capital spending, and price increases.

“Everyone has entered a stage of waiting to see what this truly means,” said Chamber President Cristian Urroz. “With it being so new, it’s going to be very important for the business community to unite, analyze the effects, and explore solutions.”

For businesses like Ground Soap, the tariffs have forced difficult decisions. Owner Angela Youngs has responded by offering a temporary 25% discount to U.S. customers to offset the price increase.

“We don’t know how long this will last or how it will play out,” Youngs said. “The majority of our ingredients come from different countries of origin other than the U.S., but they are imported through our supplier in Boston, meaning we have to pay tariffs. We’re doing what we can to support our loyal U.S. customers, but it’s a big question mark.”

Broad Economic Ripple Effects

Other businesses are also feeling the strain. Bill Halman, co-owner of The Happy Popcorn Company, noted that while tariffs do not immediately impact their operations, tightened household budgets could reduce discretionary spending. “Our hope is to keep our product prices low and give customers an option to support a local, Canadian-owned business that employs local people.”

For businesses like Poptronic VR, the tariffs have altered expansion plans. “We were recently planning on expanding our business to the U.S., but those plans are on hold,” said co-founder Kelly Bergeron. “We’re now exploring opportunities in Europe.”

Nicholas Seguin, a local entrepreneur, is taking a firm stance. “I want to stand shoulder to shoulder with fellow Canadian businesses on the front lines of this nonsense. I’m cancelling Netflix, Amazon, Disney, Adobe, and switching my web hosting to a Canadian provider. We are in this together.”

The financial impact of the tariffs extends beyond just trade businesses. Ray Eady, an insurance broker at Ready-Reliable Brokers, anticipates increased costs across multiple industries. “Unfortunately, I do see larger insurance costs rising. Any additional costs affecting the materials used to repair vehicles, homes, or even health care will all lead to higher home and auto insurance rates. We cannot rebuild a home after a fire or repair a car after a crash at the same cost we could a year or even weeks ago.”

Government Leaders Push Back

Elected officials at all levels are condemning the tariffs and calling for action.

MP Eric Duncan criticized the move, stating, “The tariffs being imposed by President Trump are completely unnecessary and unacceptable. Cornwall and SDG being border communities will feel the economic pain. We didn’t start this fight, but I support retaliatory tariffs and a stronger focus on producing goods here at home.”

MPP Nolan Quinn echoed Premier Ford’s stance, saying, “We will do whatever it takes to protect Ontario. In the face of unjust tariffs, I will continue working to defend jobs, workers, families, and our economy.”

Cornwall Mayor Justin Towndale, a member of the Border Mayors Alliance, called the trade war “really unnecessary” and emphasized the interconnected nature of the regional economy. “The City of Cornwall has long valued its strong relationships with communities across the border. We will continue working with our partners to stop this trade war and explore ways we can support local businesses at this time.”

As Cornwall businesses navigate this uncertain economic landscape, community leaders and entrepreneurs remain committed to resilience, innovation, and local support.

Supporting Local Amid Uncertainty

Ordinary residents can play a crucial role in supporting the local economy by prioritizing Canadian-made products and choosing to shop locally whenever possible. Whether it’s purchasing goods from businesses in Cornwall, the counties of SDG, or Akwesasne, every dollar spent locally helps sustain jobs and strengthens the regional economy. By consciously supporting Canadian companies, consumers can help buffer the impact of tariffs and contribute to the long-term resilience of businesses facing these economic challenges.

 

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