Niagara Falls business hit hard by end of U.S. tariff exemption

We’re now getting a better idea of the impact of U.S. President Donald Trump’s new tariffs on Canada, particularly on average Canadians.

A family-owned business in Niagara Falls tells CHCH News they’re going to be hit hard by the tariffs, along with a lot of small businesses they work with.

The concern they’re focused on is a decision by Trump to eliminate an exemption for low-value products crossing the border into the U.S. The old law was that anything worth less than $800 U.S. was not hit by tariffs.

Now, Trump is removing that exemption and these folks tell CHCH News the impact is going to be huge.

In better times, a room in Tracy Cronin’s family delivery business CrossBorder Express would be full of packages waiting to be delivered.

“We would have had the USPS packages processed and ready to go with the label on,” said Cronin.

But the shelves are empty this weekend after the business took a hit earlier this year when Trump’s tariffs started coming in.

Now, things could get a lot worse.

“Basically, I have to probably look at closing a location and keeping the warehouse open. And yeah, it’s going to be a tough go for us. But we’ll get through this,” said Cronin.

WATCH MORE: Trump says Canada’s decision on Palestinian statehood could harm trade talks

A major part of Cronin’s business has been delivering packages to the United States worth less than $800 U.S., usually a lot less, and often from people working out of their homes.

“A lot of people who come in are making their own products. Like anything to do with wedding dresses, to t-shirts, to screen printing t-shirts, to comic books, to anything you can imagine. And they usually have a full-time job and a part-time income from selling online,” said Cronin.

But now that Trump is removing that $800 exemption, those small business operators will have to pay tariffs – with Trump’s general tariff now 35-per-cent – and U.S. brokerage fees.

“This is going to have a big impact on those really small Canadian businesses. The ones that sell things on eBay or have their own small Shopify account to have their own tiny storefront, or to sell things on Etsy,” said McMaster University Economist Colin Mang.

Cronin says it probably won’t be worth it for a small business to ship those products.

She expects to lose a large part of her business and be left only with delivering inside Canada.

With seven employees, she says it could mean layoffs.

“We’ll probably have to downsize and maybe have to go to — instead of three drivers, two drivers,” said Cronin.

She says it wasn’t like this before Trump.

“Canada and the U.S., we had a really good relationship up to this point and now I don’t think that relationship is there anymore. And I’d like to see that healed. And I’d like to see that better. And I’d like to see us enjoying to go back over to the U.S. and get our groceries or whatever, and shop. But I don’t think it’s going to come to that point,” said Cronin.

“We’ll get through this. We will. And we’re strong. And I think all Canadians are strong too,” said Cronin.

Cronin says she hopes the prime minister can work out a new trade agreement with the U.S., and deal with this $800 exemption issue. She also likes Ontario Premier Doug Ford’s idea of retaliating against the U.S. with Canadian tariffs.

WATCH MORE: Trump’s 35 per cent tariffs came into effect today. Now what?