A Montreal clothing store in the Mile End neighbourhood is bracing for the impact of the Canada-U.S. trade war. Atelier B is proudly local, and its clothes are made in-house – but its business depends on customers beyond Montreal, including the United States. Those sales are now taking a hit, co-owner Anne-Marie Laflamme said. “Online sales have been really difficult in the States because of tariffs,” she said. Laflamme said her business is losing about 10 per cent of its sales revenue because of tariffs, and as the trade war between Canada and the U.S. intensifies, so does the uncertainty. “Our margins are way too thin to support that kind of tariff,” she said. On Tuesday, the federal government announced new support for businesses, including additional loan opportunities. Over the weekend, Quebec Premier Christine Frechette also unveiled financial assistance, including loans. For businesses already carrying debt, however, taking on more may not be the solution. “If you’ve been through the last rough patch of the last several years with the pandemic, supply chain disruptions, high inflation, and now a trade war, your capacity to take on more debt is quite limited,” explained Simon Gaudreault, chief economist and vice-president of research at the Canadian Federation of Independent Business (CFIB). According to a survey by the CFIB last year, many companies were ineligible for some economic relief programs. In total, just one per cent of its members used them. Laflamme is hoping this trade war will encourage shoppers to buy local, but with tariffs eating into already thin margins, she said she’s keeping a close eye on what comes next.
