U.S. businesses are grappling with the escalating trade war with Canada, as tit-for-tat import taxes and political rhetoric create significant financial strain and uncertainty. Companies that have already endured trade disputes under the Trump administration are now facing renewed challenges.
Bill Easton, owner of Terre Rouge Wines in Plymouth, California, has been unable to ship his wine to Canada for over a year and a half due to a boycott of U.S. alcohol. He is currently storing the wine, paying $2,400 a month in warehouse fees, in the hope of eventually accessing Canadian markets. "The wine has just gotten better in the warehouse, but I can't expect my customer in Canada to pay that extra cost that I've assumed over the last year and a half as part of the price, if I was able to sell it tomorrow," Easton told the BBC.
Businesses near the U.S.-Canada border are also feeling the economic impact. Heather Seevers, owner of Northwest Yarns and Mercantile in Bellingham, Washington, has seen a roughly 20% decrease in Canadian customers traveling across the border to shop at her craft store since the trade war began over a year ago. Compounding the issue, Seevers noted that her business has received emails from Canadian customers stating they could not patronize her store "due to anti-Canadian rhetoric." This sentiment, she believes, has further damaged the relationship between businesses and customers.
The combined effect of fewer customers and higher prices has led Seevers' shop to seek community support through a fundraising initiative to remain operational. The recent imposition of new tariffs, according to Seevers, has only exacerbated the situation. "It's going to get worse before it gets better," she said. "It's going to take years and years and years to get a relationship back with Canada, and I think these new tariffs are digging us deeper into a hole."