Tariffs threaten Canadian retailers and their U.S. sales — again

Sunlight shines through the flags of Canada and the United States, held together by a protester outside on Parliament Hill in Ottawa, Saturday, Feb. 1, 2025. THE CANADIAN PRESS/Justin Tang

TORONTO — When customers in the United States place orders with Toronto jewelry company Suetables, Sue Henderson does something unconventional for a business owner: she asks them if they’re really sure they want to make the purchase.

Henderson double checks because on-and-off again tariffs have driven up fees on products crossing the border. 

“Just to give you an example, someone would order a $200 pair of earrings and click through saying yes, I’ll pay the tariffs, yes, I’ll pay the tariffs, yes, I’ll pay the tariffs, but then the order would arrive to the concierge and you’ve got a $70 tariff on a $200 pair of earrings,” Henderson said.

“They’d say, ‘Well, I don’t want them.’”

Abandoning orders at the checkout and border happened so often over the last year that the U.S. went from 15 per cent of Suetable’s business to almost nothing.

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Henderson fears U.S. President Donald Trump’s latest tariffs will have many more businesses facing the same reality.

The 50 per cent duties announced Monday are set to come into force on Aug. 19 and apply to a wide range of Canadian merchandise including hockey sticks, dairy products and cement. 

Most troubling for businesses like Henderson’s is the 50 per cent tariff on some silver jewelry, gold necklaces and chains, precious metals and some imitation jewelry.

“We’re in the business of keeping customers happy and we just really can’t keep them happy with these tariffs,” Henderson said.

That was a refrain the Retail Council of Canada had been hearing all Tuesday. 

When Trump announced the tariffs, members were in the midst of planning for back to school and the December holidays — two shopping occasions that will arrive as consumer budgets likely continue to be stretched. 

“Canadians aren’t confident and are worried about their pocketbooks, so (tariffs) impact retail tremendously,” said Matt Poirier, the council’s vice-president of federal government relations.

He suspected many companies will spend the next month before the tariffs come into effect identifying which of their products, materials and ingredients are impacted. They will either ship as many as they can to the U.S. ahead of the duties or look to other markets.

Adrienne Butikofer, owner of Toronto apparel company OkayOk, skimmed the tariff list Tuesday. She found several items she designs, including T-shirts and sweatshirts made of cotton.

Their appearance on the list was frustrating because Butikofer has spent the last year figuring out how to ship products to the U.S. during an always-changing tariff regime.

“It’s just one thing after another and I’m annoyed now that I have to figure something else out,” she said.

Butikofer doesn’t do much business south of the border but reckons she’ll have to raise prices for U.S. consumers.

“The U.S. is already getting a 35 per cent discount with their dollar ... so maybe it will still be affordable,” she said. “I am not really sure how people will react.”

To cope with tariffs, Suetables stopped advertising in the U.S. earlier this year.

“We still get orders in the States but very few and we don’t encourage it,” Henderson said.

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She has to be sure U.S. customers will accept the tariffs before shipping orders because getting product back from the border is pricey.

“You’re losing money on each of those orders,” she explained. “You’re not even making $5.”

In addition to taking extra precautions with U.S. orders, Suetables moved away from sourcing some materials from south of the border and attending U.S. jewelry shows. Now, Henderson will jet set to Versailles, France, and Madrid to meet potential suppliers.

The pivot hasn’t been easy. Some potential suppliers weren’t able to match the quality Suetables desires. Products made with their materials failed when Henderson wore them in the shower for months.

At the same time, gold and silver prices were soaring and many other companies were diversifying, creating competition.

“There are a lot of layers and it never seems to end,” Henderson said. “But we’ve been doing this for 20 years and I think our best quality is we are small, so we can pivot and be nimble.”

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Tara Deschamps, The Canadian Press

This report by The Canadian Press was first published July 21, 2026.