With more tariffs expected, small Sask. businesses say they're already feeling effects of trade war

With the looming spectre of more U.S. tariffs expected this week and Canadian counter-tariffs threatened, on top of those already imposed, some small businesses in Saskatchewan say they're feeling the pinch.

U.S. President Donald Trump has said he will impose more tariffs on Canada as of Wednesday, while Prime Minister Mark Carney has vowed Canada will retaliate in kind.

That comes after Trump slapped a 25 per cent tariff on virtually all Canadian goods early last month, prompting 25 per cent counter-tariffs on American goods from Canada.

"There have been tariffs that have been in place already, so we're already seeing some price increases on certain products," said Garry Koebel, co-owner of the Sputtergotch Toy Company in Swift Current, Sask.

"For instance, on the gaming side of things, everything from Pokémon cards to hockey cards to board games, we're seeing price increases on those already."

Koebel said one of his big decisions is how much of the increased cost will they be able to absorb, and how much will have to be passed on to the customer.

"And a lot of our suppliers are kind of in frozen mode at the moment here, because there's so much uncertainty," he said.

Many of his suppliers are already trying to figure out their production for the next Christmas season.

"They're uncertain what the input costs are going to be. They're going to be uncertain about what their customers are going to be wanting to purchase," said Koebel.

"So it's just that constant flux of uncertainty that really is kind of paralyzing business at the moment here."

Tariffs could also rewrite the future of your favourite local bookstore.

One of the proposed countermeasures Canada is looking at is tariffs on books printed in the U.S.

Peter Garden, who owns Turning the Tide Bookstore in Saskatoon, said like many industries, the publishing business, along with its related supply chain, is deeply integrated between the two countries.

"It's going to be very difficult to separate out Canadian-authored and published books from American ones, and very likely those Canadian-authored books are going to get caught up in these counter-tariffs," he said.

Tariffs will raise book prices, making it harder for independent bookstores like his to stay in business, and may also push people to order books online from huge U.S. booksellers, said Garden.

"Culturally … we're constantly defending ourselves against the sort of U.S. juggernaut," he said. "There's not very many independent bookstores in this country. Those of us who are still sort of kicking are fighting to stay alive."

Bob Siemens, who owns Cowtown Kids Toy and Candy in Maple Creek, Sask., said he too has already seen price increases coming from suppliers hit by tariffs.

"And as far as the new ones, they will have a dramatic price effect on our business for our customers," Siemens said.

Cowtown sells thousands of different products, ranging from games to candy to plush animals and science toys.

Siemens said he's finding price increases from suppliers are varied.

"It's ranging from some companies being able to find ways to absorb most of the shock to basically as high as a 25 per cent jump on product," he said, which has made it stressful to figure out what to buy.

"I just hope that on the Canadian side, as they are making decisions, they realize the pressures that these small businesses are up against," Siemens said.

"Small retailers, in many cases, have to pull their product out of American warehouses," he said. "As passionate as we might be to try to find a patriotic way to avoid some of these things, it's simply not possible."

Koebel says the trade war is just another obstacle small businesses have had to overcome in the last few years, from the COVID-19 pandemic to major supply chain disruptions to a postal strike.

"This is certainly adding on to the plate without doubt, but there's some silver linings behind it as well too," he said.

"It's forced us to be looking at more domestic suppliers, domestic products," Koebel said. "We've been quite pleased with what we've been finding thus far, and I think that part is definitely going to be a positive going forward."

Turning the Tide's Garden said books are a part of the Canadian fabric.

"They're important goods in terms of our understanding of ourselves, our ability to empathize with other people through reading, our ability to learn about the world," Garden said.

"So it could be very damaging both to the cultural life in Canada and to the independent book industry."