The United States and Canada have escalated a trade dispute that now covers roughly $20 billion in goods, with each side levying tariffs on the other’s exports. President Donald Trump’s latest move adds bans on Canadian wine, whiskey, select motorcycles and whey, while Canada has slapped a matching tariff on U.S. products.
Cheese maker feels the pinch
At Jasper Hill Farm in Greensboro, Vermont, co-founder Mateo Kehler reports that holiday orders from Canadian wholesale buyers vanished within days of the new duties. Although cheese itself is not subject to the tariff, the negative sentiment has sparked a de facto boycott, Kehler said.
He added that rising fuel costs tied to the conflict in Iran have inflated the price of diesel for his delivery trucks, squeezing margins further. Suppliers on both sides of the border are tacking on surcharges, turning what was once a modest cost increase into a series of small, cumulative hits.
“It’s like death by a thousand cuts,” Kehler said, describing how inflationary pressure now touches everything from farm inputs to packaging. The farm’s equipment, some of which is sourced from Canada, has become more expensive, and the uncertainty is dampening plans to expand into the neighboring market.
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Analysts note that while the 5.5% of bilateral trade affected by the tariffs represents a modest slice of total commerce, the real impact is felt by firms that rely on cross-border relationships. When political rhetoric turns hostile, even products exempt from duties can suffer from reduced demand.
In the broader picture, the dispute shows how modest tariff levels can ripple through supply chains, especially for businesses that operate on thin margins. When a single policy shift triggers a cascade of cost increases, small operators often lack the financial cushion larger corporations enjoy.
Distilling equipment supplier faces 50% duty
On Vancouver Island, Revival Stillworks designs and builds distilling equipment for craft spirit producers. Co-founder Darcy Lane says the new tariff imposes a 50% tax on each shipment, turning a $250,000-to-$2 million order into a much pricier proposition.
Lane recalled a U.S. client who cancelled a project last year after a similar tariff threat, illustrating how quickly orders can evaporate. With U.S. customers accounting for roughly half of the company’s revenue, the added duty threatens to stall millions of dollars in pending contracts.
Shipping costs have also surged as oil prices climb amid the Middle-East conflict, prompting some buyers to reconsider whether imported equipment remains viable. Lane’s team is exploring alternative work, such as providing engineering services to the local marine sector, to diversify income streams.
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“Hopefully, cooler heads prevail and everything works out, and we can continue along as business as normal,” Lane said, adding that a contingency plan is already in development.
Canadian honey producers confront new duties
The reciprocal measure arrived as part of the broader set of duties that now affect a wide range of agricultural products. While the exact rate of the Canadian charge mirrors the U.S. figure, officials stress that the policy targets all honey entering the United States, regardless of its origin, and was introduced to counterbalance the earlier American action.
Beekeepers across British Columbia report that the timing of the tariff coincides with an influx of lower-priced honey from overseas markets, particularly products diluted with rice syrup originating in India and China. This surge has intensified pricing pressure on domestic producers, who already contend with narrow margins.
Domestic market pressure and future outlook
Facing the prospect of a saturated home market, many Canadian apiarists plan to boost sales to local retailers and consumers in an effort to offset lost export opportunities. Such a shift could lead to an oversupply situation, further depressing honey prices and eroding profit levels for both large-scale and family-run apiaries.