‘We had no time to pivot’: Canadian small businesses react to Supreme Court tariff ruling

Small business owners say the tariffs have negatively impacted their sales in the past year. Kamil Karamali reports.

Inside her Brampton, Ontario, home, Blair Nadeau stitches together one of her patented veils, which has made her bridal accessories business so popular internationally, with nearly three-quarters of her customers living in the U.S.

But how much she makes on each item, including the white veil she creates for a new bride, is completely at the whim of what the White House decides to do this week — especially now that she has learned the de minimis exemption, which allows low-value shipments — typically under $800 U.S. — to enter the country duty-free with minimal customs paperwork — will not be coming back.

“By adding the 35 per cent IEEPA (International Emergency Economic Powers Act) and removing the de minimis at the same time, it essentially took away the customer’s choice of being able to purchase from anywhere outside their own country, and it is absolutely devastating for any small business,” said Nadeau to CTV News on Saturday.

On Friday, the U.S. Supreme Court ruled that U.S. President Donald Trump’s sweeping tariffs against other countries’ goods were unlawful because the IEEPA does not give the president authority to impose broad import duties without clear approval from Congress.

• READ MORE: Trump adds 10 per cent global tariff after U.S. Supreme Court decision, but CUSMA-compliant goods are exempt

As a result, companies that directly paid those IEEPA-based tariffs as the official importer of record may now seek refunds, though the process will be handled by lower courts and U.S. Customs authorities.

Within hours, Trump signaled he would pursue new tariffs under alternative legal authorities in an effort to keep trade measures in place.

But the decision did not apply to sector-specific tariffs imposed under other laws — meaning Canadian steel, aluminum, auto, and lumber industries are not covered by the ruling and would not be eligible for reimbursement.

“The impact of yesterday’s ruling is fortunate and unfortunate for us as Canadians,” said Keanin Loomis, president of Canadian Institute of Steel Construction, via Zoom from Hamilton, Ontario Saturday.

• READ MORE: What does the U.S. court ruling on Trump’s tariffs mean for Canada?

“Fortunate in that it doesn’t impact us and that it relieves a tool by which the administration could provide leverage in the CUSMA (Canada-US-Mexico Agreement) talks. Unfortunate in that it doesn’t provide relief in the steel industry and we’re still waiting for relief.”

Canadian small business owners were also keeping a close watch on whether the Supreme Court’s ruling would possibly allow momentum for the de minimis rule to return -- but were ‘disappointed’ to see that wasn’t the case.

• READ MORE: Trump says he’ll raise tariffs to 15 per cent after U.S. Supreme Court ruling

“Realistically, I’d love to see the de minimis come back,” said Nadeau. “Because it gave businesses the opportunity to work around (tariffs), find ways to circumvent it, find ways to pivot, to figure things out. With it being removed so abruptly, it gave us a month. We had no time to pivot. We had no time to figure anything out.”

The White House released a statement on the “suspension of the duty-free de minimis treatment for all countries,” with Trump saying “after considering the information and recommendations these officials have provided to me, among other things, I have determined that it is still necessary and appropriate to suspend duty-free de minimis treatment."