The Struggle with Tariffs: A Small Business’s Plight
John Sanders, proprietor of Origins Coffee Roasters in British Columbia, finds himself at the forefront of a pressing issue facing many small businesses: the impact of tariffs on imported goods. Established in 1999, Origins has built a reputation as a wholesale coffee company, supplying cafes and the public. The recent acquisition of a significant client, OEB Breakfast Co., with its 20 Canadian and two U.S. locations, marked a milestone. However, this success comes with a challenge: a $25,000 tariff on $100,000 worth of equipment imported from the U.S., essential for securing this contract.
The Financial Burden and Its Consequences
The tariff’s financial strain on Origins is palpable. Sanders voiced his concern, stating that absorbing this additional cost is unavoidable, as passing it on to customers could jeopardize the business. The $25,000 tariff equates to a considerable expense for a small firm, with recovery anticipated to take about 1.5 years. This financial setback underscores the vulnerability of small businesses in navigating international trade complexities.
The Limited Options for Canadian Businesses
Sanders highlights a significant challenge: the absence of Canadian alternatives for necessary equipment. Origins, despite using Canadian coffee, must rely on U.S. imports for equipment like grinders and brewers, as domestic options are non-existent. This reliance subjects them to tariffs, affecting not only Origins but potentially other Canadian businesses in similar situations.
A Call for Government Intervention
In light of these challenges, Sanders calls on the government to reassess tariff policies, particularly for products without Canadian alternatives. He emphasizes the need for a nuanced approach, advocating for exemptions or reduced tariffs on essential imports. Sanders believes such measures could alleviate pressures on small businesses, fostering a more supportive environment for entrepreneurship.
The Broader Impact on Canadian Entrepreneurs
Origins’ situation is not unique; many Canadian businesses face similar struggles with tariffs on U.S. imports. The issue extends beyond coffee, affecting various sectors reliant on imported goods. This underscores the need for policy reforms that consider the reality of global supply chains and their impact on domestic businesses.
Resilience in the Face of Adversity
Despite these challenges, Sanders remains committed to his craft. He expressed a deep passion for coffee and a determination to persevere, despite the financial and bureaucratic hurdles. Origins’ story is one of resilience, illustrating the spirit of small business owners dedicated to their craft and community, even in adverse conditions. As Sanders continues to navigate the complexities of tariffs and international trade, his resolve serves as an inspiration to fellow entrepreneurs facing similar trials.
