Leah's Corner: Tariffs & The Impact on Small Business

Spring often brings a sense of renewal, an exciting new energy that we all need after our long winter season of nesting and hibernation. Instead I’ve been feeling trepidation, paired with an all too familiar fatigue as we’re hit with another reason to worry and fear for the future of our businesses. 

I’ve had a lot of folks ask how the tariffs and talk of a trade war will specifically impact my business so I thought I would share some of what I have been experiencing and hearing from other business owners.

How Small Businesses Are Being Impacted

1. Importing Goods from USA: So far none of the US goods we import at Scout have been impacted by additional tariffs but the unpredictability of it all is concerning and there are a lot of small businesses that are getting some pretty scary customs invoices. We don’t know what move will be made next in retaliation and so I’ve been topping up my US orders and I've been inspired to amp up our Canadian made goods by sourcing some new local brands! 
   
   
2. Exporting Canadian Goods to USA: One of the biggest impacts will be seen on some of the small Canadian brands we work with who rely on their US wholesale accounts to make ends meet. The Canadian wholesale market is miniscule compared to the US wholesale market and losing those crucial accounts could mean seeing more small Canadian businesses closing up. 
   
   
3. Cost Increases: Increase in costs is a scary reality. I feel like we have already been raising prices every year due to supply issues and inflation. We know not everything can be sourced in Canada so even for Canadian makers who may get part of their product, like their lids or their jars in the US, this could mean another increase in prices. We may also see some increases with US Brands that import some of their products from China. 
   
   
4. Shipping Timelines: Because of the tariffs, customs is backed up. Even if items are not coming from the US but another country, there is a backup due to the added process of assessing tariffs, so shipping is a little unpredictable again. 
   

Tips for Canadian Small Business Owners

I’m tired of being led by fear and I think there is a fine balance between listening to the noise and responding and being led by the noise and reacting. I keep reminding myself to check in on my own values when I am making decisions around the business and to not be fully guided by fear and all the possible “what if’s”. Some of the things we small business owners can control:

• Who we are buying from and prioritizing local as much as possible, this isn’t just with the products we carry but also when sourcing store supplies, as well as in your daily life
  
  

• Buying less products if we are noticing a shift in shopping patterns, taking less risks with brands and products, stick with the tried and true
  
  

• Adjusting hours and staff schedules to save on some costs while we notice a shift in shopping patterns. If you need to cut back on hours can you increase your staff pay slightly to help them with increased living expenses. This may seem counter intuitive, but keeping those loyal staff feeling more secure in their role will have a positive impact on your business. There are also grants available to help subsidize wages.
  
  

• Look into other grants for small businesses. I've utilized digital grants annually to update websites, improve SEO, or try new marketing strategies (check out this one and this one). There are also grants for employee wages and for those in BIPOC communities. Check your BIA or research other grants and subsidies to find more opportunities. This is a neat resource worth exploring. 
  
  

• Stay true to your values and let them guide you instead of the noise. Consider supporting those in need by running fundraisers or donating to local schools and charities. You can help without spending anything by offering your time or your space for donations, using your platforms to raise awareness, or selling items with a portion of proceeds going to charity. There are many ways to give back to your community at no cost to your business.

Shop Small, Shop Local, Shop Canadian

I hope some of that information is insightful. I am choosing to move forward and to not let the fear completely control my decisions. We are in a fortunate position as a more established business that has a safety net to fall back on with the hopes there is an end in sight to this added pressure we’re all feeling. 

The “Shop Canadian” sentiment is real and needed and I feel like a broken record saying shop local, but there will sadly be a lot more businesses closing their doors due to this strain from the US. I think the through-line to all of this uncertainty over these last few years is that small businesses always need to be top of mind. It is much harder for us to bounce back from economic challenges than the billionaire companies of the world who will continue to carry on with business as usual.

So thank you for continuing to choose us!