Table of Contents
The reality of tariffs for small businesses
In recent years, small businesses across Canada have been grappling with the financial implications of tariffs imposed on imported goods from the United States. These tariffs, designed to protect domestic industries, often have the unintended consequence of burdening small enterprises that rely heavily on imported materials and equipment.
One such business is Origins Coffee Roasters, a wholesale coffee company based in British Columbia.
Founded in 1999, Origins Coffee Roasters has established itself as a key player in the coffee supply chain, providing high-quality products to cafes and consumers alike.
However, the company, like many others, is feeling the pinch of increased costs due to tariffs. Owner John Sanders explains, “We have to import everything that we use in this business.” This reliance on U.S. imports has become a significant challenge, especially as they recently secured a major client, OEB Breakfast Co., which operates multiple locations across Canada and the U.S.
Understanding the financial strain
To fulfill their new contract, Origins Coffee Roasters must import essential equipment such as coffee grinders and brewers. Sanders emphasizes the harsh reality of the situation: “We’re the ones that are going to suffer for the tariff.” The financial burden is substantial, with Sanders estimating that the tariffs could cost his business around $25,000, a figure that will take approximately a year and a half to balance out.
This situation raises a critical question: how can small businesses absorb such costs without passing them on to consumers?
Sanders acknowledges the difficulty of maintaining competitive pricing in the face of rising costs. “We cannot pass this on to our customers, 100 percent.
We have to eat this tariff unless the government comes and helps us.” This sentiment resonates with many small business owners who feel trapped by the economic policies that are meant to protect them but instead threaten their viability.
The call for government intervention
As the tariffs continue to impact small businesses, Sanders urges the government to reconsider which products are subject to these charges. He points out that there are no Canadian alternatives for the equipment they need, stating, “There’s no manufacturer in Canada that creates any of this equipment for us to use in Canada whatsoever.” This lack of local production forces businesses like Origins to look south of the border, where they face additional costs that can jeopardize their operations.
Despite these challenges, Sanders remains passionate about his work. He loves the coffee industry and is committed to providing quality products to his customers. However, the ongoing struggle against tariffs highlights a broader issue facing small businesses in Canada: the need for a more supportive economic environment that considers the unique challenges they face.
