How 104% U.S. Tariffs Are Impacting Our Canadian Small Business

How 104% U.S. Tariffs Are Impacting Our Canadian Small Business

How These New U.S. Tariffs Are Hurting Small Businesses Like Ours

We’re a small Canadian company, proudly women-owned, and like many entrepreneurs, we’ve poured our hearts into building a brand that families love and trust. We design our baby products with care, manufacture them responsibly in China, and warehouse everything in Canada to maintain quality control and fast order fulfillment.

But now, thanks to the new U.S. tariffs, our entire business model is being put to the test.


The 104% Tariff That Changes Everything

As of April 2025, the United States has imposed a massive 104% tariff on goods imported from China—including baby products like ours. That means any item we manufacture in China and ship into the U.S. is suddenly twice as expensive to get across the border.

To make matters even more complex, we ship all of our U.S. orders directly from our Canadian warehouse. Why? Because:

  • It gives us control over inventory,

  • Allows us to provide consistent service to our U.S. customers,

  • And keeps us compliant under de minimis thresholds for U.S. customs.

But now, with tariffs this extreme, every single order crossing the Canada–U.S. border is affected. And we’re left scrambling to figure out how to absorb, adjust, or survive.


Why This Hits Small Businesses So Hard

We’re not a giant corporation with warehouses in multiple countries and endless resources. We’re a small team working hard to create high-quality baby teething toys and accessories, and serve families on both sides of the border.

Unlike big-box brands, we don’t have the luxury of shifting manufacturing at the drop of a hat or absorbing massive cost increases without passing them along. A 104% tariff? That’s not a bump—it’s a brick wall.

We now face tough decisions like:

  • Do we raise prices to keep up with rising costs, knowing it may impact sales?

  • Do we try to find new suppliers in other countries—and if so, how long will that take?

  • Or do we change our fulfillment strategy completely, which could delay shipments and affect customer satisfaction?


The Bigger Picture: Global Trade Policy, Local Pain

This isn’t just our problem. Small businesses around the world are feeling the pressure of aggressive trade policy decisions made without considering how the little guys operate.

For companies like ours that rely on cross-border shipping, these tariffs are more than just a line item—they’re a threat to our survival. And most customers don’t even realize it’s happening.


How We’re Responding

We’re not giving up. We love what we do, and we believe in our products and our community. Here’s how we’re adapting:

  • Staying transparent: We're keeping our customers and retail partners in the loop about how these changes are affecting pricing and shipping.

  • Reviewing supply chain options: We're exploring alternative fulfillment strategies and manufacturing sources.

  • Advocating for small businesses: We're speaking out, sharing our story, and connecting with other small business owners who are facing similar challenges.


How You Can Support Small Businesses

If you love shopping small, your support matters now more than ever. Here’s how you can help:

  • Shop Early: If you've been considering purchasing our products, placing your orders before May 2 can help us manage the transition smoothly.

  • Follow Us: Stay updated on our latest product launches, challenges, and updates by following us on social media. We love staying connected with our community!

  • Share the Love: Know someone with a baby in their life? Share our story with them! Every referral helps us grow and continue offering quality products to families everywhere.

Your support means the world to us. Together, we can navigate these changes and keep delivering the best for your little ones.


Let’s keep this conversation going.
Are you a small business dealing with the impact of U.S. tariffs? Drop us a message or leave a comment—we’d love to hear how you’re navigating it. Together, we can make more noise and push for smarter, fairer trade policies that don’t leave small businesses behind.

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