Counter-tariffs add new challenge for retailers

Removing trade uncertainty tops Harold Kriewald’s wish list.

On Wednesday, he hadn’t heard from suppliers about which — if any — products at Stalwart Appliances in Winnipeg will be hit with new levies.

Canadian tariffs on $26.7 billion worth of United States imports are set to begin Sept. 8. They come before the holiday season, the retail sector’s busiest stretch.

“(If) the forecast is uncertain, you as the consumer are not always prone to want to make a big purchase,” said Kriewald, Stalwart Appliances’s owner. “Uncertainty is probably the worst thing. The tariffs, of course, bring that uncertainty.”

Canada’s counter-tariffs target a range of items, including dishwasher parts, cotton T-shirts and toilet paper.

Appliances were among the U.S. imports tariffed last year, during an earlier part of the two countries’ trade dispute. Then, bigger brands swallowed the new costs and customers didn’t see a difference, Kriewald said.

He’s hoping a trade resolution will come before Sept. 8. For now, his staff are fielding calls from customers about their American-brand orders.

Manitoba stores that import goods often sell some U.S. merchandise, said John Graham, the Retail Council of Canada’s Prairies director of government relations.

“The challenge for retailers will be to factor in the cost differential between (an) alternative to the U.S. and consumers’ willingness to pay that potentially higher cost,” Graham said.

“Our concern is that there may be a slowdown in purchasing if there’s a … heightened cost due to counter tariffs.”

Many companies have looked to source outside the United States over the past year, Graham said. Still, those shifts can take years to accomplish.

Jilianne Gayanilo has noticed a drop in 26 Market’s online sales over the past couple weeks. She attributes it to tariffs.

“We get a lot of inquiries from U.S. customers about (duties),” Gayanilo said. “It would be nice if the U.S. customers had that knowledge, especially since it’s their country.

“They’ll get mad at us for having tariffs … but we don’t have control over it.”

The Exchange District shop built itself by shipping Japanese products — stationary, bags — to American customers via online sales.

If the downward trend continues, leadership will need to make a game plan, said Gayanilo, the assistant store manager.

Some Manitoba retailers who export goods under US$800 are hit with tariffs on their southbound shipments; the U.S. removed the de minimis exemption, a former duty-free measure, in August 2025.

Products have also become more expensive as various tariffs work their way through supply chains.

At 100 Princess St., 26 Market is leaning into in-person sales. It’s seen more foot traffic since joining First Fridays in the Exchange, a monthly event showcasing local businesses.

“We’re in early days, and the economic reports that we see are that some of those sectors will feel some pain,” Graham said. “The retail sector is concerned but standing behind a united Canada.”

The Collab Shop has avoided importing certain U.S. clothing brands because of the cost.

“It’s hard as a Canadian having a business because most of our items, we have to get it from other countries,” said Nico Te, the Winnipeg streetwear store’s co-owner.

Goods from Asia and Europe often land in the United States before being shipped into Canada.

Exporters to North America have “tended to view the U.S. and Canada as one market” since the North American Free Trade Agreement, said Barry Prentice, a University of Manitoba supply chain management professor. NAFTA took effect in 1994.

It’s cheaper and easier to build one distribution warehouse in the U.S. than to build a warehouse for each country and ship to separate ports, Prentice wrote in a statement.

However, this depends on the product and its regulatory environment.

“The trade dispute is going to disrupt these smoothly laid out logistics for some products,” Prentice wrote. “My guess is that more scrutiny at the border (will) cause delays.”

Shoppers have generally purchased American products over the past months, but a “Buy Canadian” push is again surging amid the latest trade deal breakdown between the United States and Canada, Graham said.

He’s also seen a trend of people searching for less expensive goods.

“It’s getting harder and harder for the average person to make ends meet,” said Mandel Hitzer, owner of Deer + Almond.

“Me, being a restaurateur, we feel it in that space.”

While out in the Exchange District, Hitzer said he supported the buy local push: “I think it gives us all the opportunity to turn around and look and see what’s in our backyards.”

gabrielle.piche@winnipegfreepress.com