Navigating Tariffs: The Small Business Struggle with USMCA Compliance

Steve Mallia, owner of a Toronto-based telescope accessory business, has been navigating the challenging waters of international trade since the Trump administration imposed a 25% tariff on U.S.-bound orders not complying with local content rules under the USMCA.

As Mallia's business contends with these tariffs, he reflects on the initial success his company found in the U.S. market before the tariffs effectively shut out competition by raising costs on components sourced from China. The decision to comply with USMCA regulations came with heavy expenses, as alterations needed to be made in supply chain management and production processes.

Despite these financial hurdles, Mallia is optimistic about regaining access to U.S. markets that constitute a significant portion of StarField's sales. This scenario underscores the broader challenges faced by small and medium enterprises across Canada in adjusting to tariffs and the evolving global trade landscape.

(With inputs from agencies.)