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Canadian small businesses working to fend off effects of tariffs, despite reprieve

TORONTO — U.S. President Donald Trump might have paused 25 per cent tariffs on Canadian goods for a month, but small businesses aren't breathing a sigh of relief just yet.
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People are shown in a shopping mall in Montreal, Sunday, Dec. 19, 2021. THE CANADIAN PRESS/Graham Hughes

TORONTO — U.S. President Donald Trump might have paused 25 per cent tariffs on Canadian goods for a month, but small businesses aren't breathing a sigh of relief just yet.

Karen Danudjaja says her beverage powder brand Blume will spend the next few weeks analyzing its supply chain to find ways to avoid or minimize the effects of potential tariffs.

Blume sources its ingredients from all over the world but produces and packages its hydration powders just outside of Vancouver.

It is about to launch the products in Whole Foods in the U.S. and Danudjaja is worried about whether American customers will want to support Canadian brands during a tariff feud.

Shelby Taylor is similarly concerned about the trade spat because her business Chickapea is based in Collingwood, Ont., but makes its pulse-based pastas in the U.S.

With production happening south of the border, she says her company would be subject to Canada's retaliatory tariffs and fears customers won't pay more for her products, if she has to pass along costs to them.

This report by The Canadian Press was first published Feb. 4, 2025.

Tara Deschamps, The Canadian Press