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“It is essential that we’re all pulling collectively in the identical route.”
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Kevin Stewart, proprietor of Ottawa Valley Grain Merchandise, says enterprise has been booming since the specter of tariffs was first talked about, however there’s a lot uncertainty concerning the future if these tariffs are literally imposed. Picture by Ashley Fraser /POSTMEDIA
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For native small companies and the on-going commerce threats from U.S. president Donald Trump, it’s a excellent news unhealthy information story of two tariffs.
Ottawa Valley Grain Merchandise proprietor Kevin Stewart, whose flour enterprise is booming, says it feels looks like he’s a part of one thing bigger.
“I’m all for, ‘Go Canada Go,’” said Stewart, who has seen retail sales double at his family-owned outfit in the past three weeks as many customers have chosen to boycott U.S.-brand products.
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“It feels like we’re all on the identical workforce and dealing collectively. We work with farmers within the Ottawa Valley. It’s essential that we’re all pulling collectively in the identical route.”
Stewart says individuals are pondering twice earlier than going purchasing, searching for out locally-sourced merchandise wherever they’ll.
“It’s been going on since around Jan. 22, when there was the first word of the tariffs,” he stated.
“People are saying they wanted to do something about Trump. They’re finding us on Google. We’re getting a lot of online sales. We had some people come in and ask how long we have been here. I said, ’96 years.’”
Sometimes, Ottawa Valley Grain ships in massive portions, together with 1,000 kilogram luggage that have to be moved by forklifts. Further demand has led to some adjustment in packaging to smaller portions and, if that retains up, further workers could must be employed.
There has additionally been an added bonus to the enterprise coming from south of the border. After Trump introduced his plans to slap a 25-per-cent import obligation on most Canadian items — he has since hit the pause button for a month — Stewart’s U.S. clients had been attempting to get forward of the curve of further prices.
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“We have some U.S.-based customers, and they were scrambling to get their orders in before the tariffs, on Jan. 30 and Jan. 31, and we were shipping to those customers at the last minute. Of course, now there’s a reprieve,” Stewart stated.
All that, nevertheless, may flip within the different route if and when Trump does comply with by means of.
Kevin Stewart, proprietor of Ottawa Valley Grains Merchandise, says his flour enterprise is booming. Picture by Ashley Fraser /Postmedia
“A 25-per-cent increase on any product is hard to absorb,” Stewart stated. “We’re doing our best to get our prices as low as possible and we’ll try to meet our customers halfway, but, unfortunately, we’ll probably lose some of those (if tariffs are imposed).”
Certainly, in some instances tariffs and the looming risk of counter-tariffs from Canada have created complications for different native small companies.
Take, for instance, The Village Quire, a specialty reward card and stationery store in Westboro. It caters to clients searching for a spread of selections not out there at bigger field shops that carry just a little little bit of every part.
The shop’s merchandise come from around the globe: Canada, Europe and, sure, the USA.
When Prime Minister Justin Trudeau threatened to retaliate with $155 billion in taxes on incoming U.S. merchandise, The Village Quire proprietor Molly van der Schee tried to get forward of the commerce sport.
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“I buy from Canadian distributors that pull in from the U.S., and, if they’re saying there will be (counter-tariffs), that extra tax will be distributed to the businesses that they sell to,” she stated.
“So I bought up extra stock of American stuff. I also have British-made cards and Canadian cards. But, if the taxes go up on the American stuff, maybe we drop that line and we would have to fill that hole with something else. It’s problematic because the U.S. offers some things you can’t get in Canada.”
Molly Van der Schee of The Village Quire says guests are more and more checking product labels to see the place gadgets in her retailer have been produced. Picture by Tony Caldwell /Postmedia
Would clients be keen to pay $15 for a hard-to-find wrapping paper or ribbon product from the U.S. that was beforehand $12?
“I have a lot of loyal customers who like the selection, but do people turn to the dollar store or Chapter’s or Costco? Would people decide to buy wrapping paper when they go in to buy their (Costco) chicken?” van der Schee stated. “I want people to know that I work hard to provide choice where they can find different things, like a lot of shops in Westboro. When you go to the bigger stores or malls, it’s one-stop shopping.”
Because the “Buy Canadian” motion has gained momentum in current weeks, van der Schee says guests to the shop are more and more checking product labels.
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“They say, ‘It’s from the U.S.,’” she stated. “But I tell them, ‘I own it. I bought it before the tariffs. I’ve got to sell it.’ I’ve had the same conversations 100 times. It’s exhausting. Some people are buying stuff that’s from China, but not the U.S.”
It’s one more twist in how small companies have needed to roll with the punches for a number of years, together with coping with COVID-19-related closures in 2020. The Village Quire was closed for eight months in the course of the pandemic.
Paul Meek, proprietor of Bells Corners-based Kichesippi Beer Firm, is aware of precisely the place van der Schee is coming from.
The substances in his beer, together with hops, malt and yeast are virtually completely Canadian. Cans, nevertheless, are one other story: two huge U.S. suppliers service a lot of the beer business.
Paul Meek, proprietor of Kichesippi Beer Firm, says the substances within the firm’s product are virtually completely sourced in Canada, however the can business is dominated by two main U.S. suppliers. Picture by Ashley Fraser /Postmedia
Ought to further taxes come, Kichesippi should pay the worth and, ultimately, go on these prices.
“It’s hard to quantify, but it creates a lot of uncertainty,” Meek stated. “We know the prices are going to go up at some point. We just don’t know when. There are more questions than answers.”
Shopping for up an enormous amount of cans earlier than a possible tariff improve isn’t a logistical risk, given the restricted warehouse area of the small, regionally-based microbrewery.
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Maybe, he says, the reply lies in trying to the Far East to see if cans are cheaper.
Beer drinkers who get pleasure from supporting a homegrown product may be keen to spend a number of extra cents per can, however how a lot of a value improve can be an excessive amount of?
Meek acknowledges that his product isn’t a necessity like garments or meals, however he appreciates “Buy Canadian” elevated influence.
“That’s the unfortunate thing, that it had to come to this for people to think that way, to support local businesses,” he stated.
The unknown proved to be an excessive amount of for the Conspiracy Brewing Co., additionally based mostly in Bells Corners.
“Due to economic uncertainty and the future, we have to close our doors effective today,” the corporate posted on Fb. “We have tried to pursue every option available to us and the risk is too high for ourselves and to our suppliers.”
Stewart, of Ottawa Valley Grain, says he’s in some methods reliving the expertise of how folks shopped throughout COVID-19.
“We had record sales during COVID,” he stated. “We had more people baking, more local bakeries (coming to us), and then it tapered off. Now we have another wave of buying local.”
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He says it’s intriguing that the commerce warfare discuss has helped folks turn into extra conscious of the world round them.
“Everyone’s looking into geopolitics and how world economies work,” Stewart stated. “Sometimes, it’s almost unbelievable that you can find something for a cheaper price that’s five times further away. How is that possible?”
In the end, Meek says, the U.S. president holds the Trump card.
“We’re all trying to figure out what he’s thinking,” he stated. “It’s a winning lottery ticket if you can figure that one out.”
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