New Tariffs Threaten American Dream of Small Alberta Business That Survived CUSMA

An Alberta couple has temporarily stopped selling handcrafted wooden lawn games to customers in the United States following the announcement of a 50 per cent tariff on numerous Canadian products.

The proposed tariff includes certain goods previously covered by the Canada-United States-Mexico Agreement, commonly known as CUSMA. It is scheduled to take effect on August 19.

Andre Proust and Stella Brassard operate Andre and Stella Games from their home-based workshop in Irricana, Alberta. Their handmade games are primarily sold through the online marketplace Etsy.

The United States represents the company’s largest market, accounting for more than half of its total sales. However, the couple believes the new tariff has made continued exports too financially uncertain.

Proust said they have invested five years in developing the business, and the tariff could significantly affect whether their products remain profitable.

U.S. Orders Suspended Before Tariff Deadline

Although the tariff is not yet in effect, the business has already stopped accepting American orders.

Each wooden game requires approximately two to three weeks to produce. Brassard explained that tariff rules could change between the date an order is received and the time the finished product reaches the border.

Continuing to accept orders could leave the company responsible for unexpected charges of up to 50 per cent when the products are shipped.

The couple also decided against transferring the additional cost to American buyers. Brassard said such a substantial price increase would be unreasonable and unaffordable for many customers.

Months Spent Meeting CUSMA Requirements

The suspension is particularly disappointing because the business had spent months getting its products approved under CUSMA.

The couple began the compliance process after changes to the U.S. de minimis exemption made it more complicated to ship commercial orders valued below US$800.

CUSMA certification allowed Andre and Stella Games to prove that its products were made in Canada and met the trade agreement’s rules of origin. This enabled the company to send eligible products to the United States without tariffs.

According to Proust, every product had to be individually registered, and the complete qualification process could take as long as three months.

After completing the lengthy procedure, the latest tariff announcement has created another major obstacle for the business.

Canadian Businesses Face Difficult Decisions

Dan Kelly, president and chief executive officer of the Canadian Federation of Independent Business, said the tariff threat directly challenges the foundation of CUSMA.

He noted that Canadian companies have faced repeated trade threats and policy changes for roughly a year and a half. However, the latest proposal is especially serious because it targets products that had previously entered the United States tariff-free.

Kelly said uncertainty surrounding American trade policy is making it increasingly difficult for Canadian companies to plan their operations.

Small businesses generally have limited financial flexibility, meaning one costly decision can severely damage their operations. He warned that a 50 per cent tariff could have devastating consequences for thousands of Canadian small and medium-sized companies.

Small Businesses Reducing Dependence on U.S.

A CFIB survey found that 52 per cent of Canadian small businesses no longer view the United States as a reliable trading partner.

As a result, more companies are searching for alternative suppliers and customers within Canada and in other international markets.

Proust and Brassard plan to follow a similar strategy. Their immediate priority is expanding their Canadian customer base while also considering future opportunities in Europe.

Proust said the business intends to focus on Canadian buyers while continuing to explore other available markets.

The proposed 50 per cent U.S. tariff has forced Andre and Stella Games to suspend sales in its most important export market despite completing the lengthy CUSMA compliance process.

For now, the Alberta business will concentrate on Canadian customers and investigate opportunities in Europe. Brassard remains hopeful that the tariffs will eventually be removed, allowing the company to resume serving its American customers.