A B.C. small business owner is speaking out about the effects U.S. Donald Trump’s proposed tariffs would have.
Prime Minister Justin Trudeau announced on Monday afternoon that he and Trump agreed to pause U.S. tariffs on Canada “for at least 30 days” after an agreement on border security measures.
However, uncertainty remains.
Asha Wheeldon, founder of Kula Foods, based in Burnaby was looking forward to celebrating a new deal with a California-based grocer.
The company makes plant-based meat alternatives, highlighting African and Caribbean flavours and has been in business for seven years.
“We are a small company here in B.C. and we have a great agreement, a great partnership coming up in California with a grocer,” Wheeldon told Global News.
“This means a lot to us, not only to enter a new market but it’s going to create an opportunity for Kula.”
Wheeldon said the proposed 25 per cent tariffs would have a huge effect on their production and bottom line.
“I have found myself, as a founder of this brand, to consider what we are going to do,” she said.
“I cannot change the price right now. We just entered this agreement, it’s finally activated.”
Wheeldon said that typically there is a window of three to six months before any new prices can be negotiated.
“Pretty anxious, pretty heavy,” she added when asked how she was feeling.
“It’s already very difficult to enter a new market, it’s a new country, you have to consider regulations, ensuring the product is up to par, we’re not physically there so that’s also building presence.”
Wheeldon said cost margins are already so thin in the food industry and there are so many unknowns as to how the tariffs could affect her business.
She said they know they will take a loss when or if these tariffs are put into effect.
“Twenty-five per cent is not small,” Wheeldon added, with potential losses in the hundreds of thousands of dollars.
Alayna Pezzuto, sales and brand manager for Kula Foods said it is getting harder and harder to deliver a quality product and keep the prices affordable.
“We’re trying to keep the mood happy and upbeat, stay hopeful, but we do have to be realistic in a sense,” she said.
“It’s not just here that people are struggling to buy food, it’s everywhere.”
Pezzuto said the situation feels almost hopeless because there is not a lot they can do.