A look into the effects of tariffs on local businesses
Local Sackville businesses are facing tariff impacts in the wake of the Canada-United States trade war. Leo Kalverda, co-owner of The Roost Café told The Argosy that “prices might go up, but that’s not reflecting upon the greed of an owner.” Kalverda noted that “it’s almost always to do with increased costs.”
For residents of Sackville, the dispute between Washington and Ottawa has already become a local problem. Kalverda told The Argosy that the tariffs have affected two of the café’s most vital products, coffee and syrup. “The company that we get our syrups from, half of it is made in France, the other half of it is made in the U.S.” Kalverda said.
Kalverda added that even coffee beans grown outside the United States often pass through the country before reaching the roaster who prepares them for The Roost. This leads to additional tariffs before the coffee can enter Canada, and subsequently reach Sackville. “It’s difficult when a lot of the things that we get either go or come from the States. It’s frustrating,” Kalverda said.
“The syrups are one of the things that we never raise our prices on in here,” Kalverda said. “So our customers are paying the same amount they always have, but we are paying more as a business to get it in.” He said that The Roost has looked at alternatives to American-sourced goods, but that its current suppliers, “despite them costing more, are the more accessible products to get.”
Esther Chang, owner of Aida’s Cafe, said in an email to The Argosy the trade war added a layer of uncertainty on top of cost concerns the business was already managing. “We are already dealing with rising food, labor, rent, and operating costs, so additional uncertainty makes it more difficult to plan and manage the business,” Chang wrote. She said some of the cafe’s ingredients and supplies have traditionally come from the United States, either through Canadian distributors or directly, but that Aida’s is, “making an effort to choose Canadian-made and Canadian-sourced products whenever possible.”
Luc Poirier, one of the owners of Ducky’s Bar, said in an interview with The Argosy his business does not import directly from the United States, but has still felt the effects second hand. Ducky’s sources its alcohol exclusively from the provincial liquor retailer, Alcohol NB Liquor (ANBL). “The availability of American products has been reduced significantly,” Poirier said. “The province of New Brunswick has decided not to purchase any additional alcohol from the United States.” He said this has led to the removal of familiar items from shelves, including bourbon and other American whiskeys that were previously bar staples.
Poirier said the more significant impact has come from customers having less disposable income overall. “People come out to the bar for a good time, and are now, because of the higher cost of everything else, unable to spend as much to have that good time,” he said. In response, he said Ducky’s has responded by increasing the number of free-admission events and expanding its range of cocktail offerings. “It’s not significantly more than a drink you would make at home, but there’s a whole lot more experience to it.” Poirier said. “We’re making it fun.”
Trade talks between Canada and the United States collapsed late on Aug. 21, hours before a midnight deadline that triggered 50 per cent tariffs on roughly $20 billion of Canadian goods. Canadian Prime Minister Mark Carney said that important progress has been made in recent weeks toward, “improving Canada’s position as having the best deal in the world with the U.S.,” but that the progress did not meet Canada’s objectives. In a statement made on Aug. 21, Carney said last minute changes to the U.S. proposed terms were, “ unfair, uneconomic, and called into question the reliability of any deal”, according to NPR. In response, he said, “Canada will match those tariffs dollar for dollar to protect our workers and businesses.”