With ongoing trade war, Newfoundland fashion designer takes rain check on U.S. expansion

Tariffs are pouring down on one Newfoundland-based raincoat company's plans to break into the United States market. Instead, the owner is focusing on a new market across the Atlantic Ocean.

Mernini raincoats have been growing in popularity, and founder Maria Halfyard moved her business out of her home and into a St. John's warehouse.

The company — now in 50 stores across Canada — has seen booming sales, and Halfyard began looking to the U.S. for new business — until U.S. President Donald Trump began issuing tariffs on incoming goods, creating a global trade war.

"With everything that's going on in the market — the tariff war — it wasn't a very great place to be," Halfyard told CBC Radio's Weekend AM.

"Obviously those tariffs … would be extremely detrimental to my price point."

Now, she's looking to sell her coats in the United Kingdom instead.

Listen CBC's Heather Barrett chat with Mernini's Maria Halfyard on adapting to U.S. tariffs:

Weekend AM6:34The founder of Mernini raincoats is weathering out the trade storm

Maria Halfyard, the founder of Mernini, explains how she is adapting her export plan for Mernini raincoats to weather out international trade disputes.

Halfyard says the U.K. market has been more welcoming.

As political tension began to heat up between Canada and the U.S., Halfyard says she noticed a shift in mood from her U.S. contacts.

"I didn't get a lot of replies as quickly," she said. "The U.K. was a lot more responsive and excited about taking a Canadian brand."

Halfyard says small businesses who sell directly to the U.S. will be hit significantly by tariffs, adding it can be extra hard for companies selling a new product.

"I know that there's some Canadian companies that have had to scale back, they've had to lay off people and then look for new markets," she said.

Tariffs would likely mean higher prices for U.S. customers, says Halfyard.

If the company doesn't lower its prices, the customer has to pay the tariff, she says, adding she's optimistic that pivoting to the U.K. will be a good thing for her company.

"I think the U.K. market is going to love my products," she said. "For me, it's a smaller market to penetrate."

Halfyard says she will soon be releasing a new midnight blue coat and a children's line in the fall.

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