2 days ago
Montreal streetwear store wrestles with Canada's counter-tariffs
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When Graeme Anthony received a shipment from a clothing brand to his Montreal streetwear shop two weeks ago, it came with an unexpected charge: an additional $1,500 bill.
The charge was caused by an error on the brand's customs paperwork, resulting in the items being tariffed as if they were 100 per cent made in the United States, even though they weren't.
Anthony is contesting the charge, but says the costly mistake is only a small example of the 'chaos' tariffs and counter-tariffs continue to inflict on small businesses like his.
'You can imagine this is multiplied thousands of times across the country,' Anthony, who's worked in the Montreal retail space for 20 years, said from the Lopez store he co-owns on St-Hubert St.
Three months after U.S. President Donald Trump imposed tariffs against Canada — and the Canadian government responded with counter-tariffs — the measures continue to impact local businesses with cross-border ties.
Canada's 25 per cent counter-tariffs on U.S. goods include items like orange juice, cosmetics, motorcycles and, notably for Anthony, apparel and clothing.
For stores like Lopez, he said, the measure is taking a toll.
Owners increasingly face the challenge of trying to find the right balance between how much of the tariffs they can absorb and what they can pass on to customers, without driving people away.
'I think bigger stores have more options to mitigate the costs,' Anthony said. 'As small retailers, we have fewer options. It's either we absorb it, or the customer absorbs it.'
Lopez opened its doors seven years ago and specializes in skate and streetwear. The store imports many smaller, independent brands from the U.S. that use American-made clothing.
Anthony said he noticed the effects of the tariffs almost immediately when shipments began to be delayed, likely because of the additional paperwork required at the border.
Since the store sells products with specific release dates, known as drop dates, even minor delays can be frustrating setbacks. He also worries what it will mean for the fall, when most brands launch new collections.
'Our consumer sees it on the runway or sees the brand post about it on social media, and expects it at a certain date,' Anthony said. 'When those dates are missed, customers go elsewhere.'
He's had many conversations with regular customers since then and has done his best to explain why he's now selling certain items at higher prices to offset the tariffs he pays.
But he understands that from the customers' perspective, what it comes down to is a T-shirt that cost a certain price only a few months ago is now priced $20 or $30 higher.
The difference can be enough for someone to reconsider buying a certain pair of pants or jacket, say, or even leaving the shop empty-handed if they feel they can find a better deal online.
'That's the effect on a small store like us,' Anthony said.
When the Canadian government first announced its counter-tariffs in March, it explained most products subject to tariffs were selected because they have domestically made alternatives.
Contacted for this story, a spokesperson for Canada's Department of Finance said it understands the challenges Canadian businesses are facing 'as a result of U.S. tariffs and Canadian countermeasures.'
'Overall, Canada's tariff response has been crafted to help and protect Canadian businesses impacted by U.S. tariffs,' the spokesperson added.
But Anthony questioned whether decision-makers understand the domino effect the measures are having. 'It's a small amount of money for the federal government, but a large amount for a small business,' he said.
To counter the tariffs, Lopez is actively seeking to import new brands from independent suppliers in Asia and Europe instead of those from the United States. It's also redoubling its efforts to feature local Montreal products.
Still, Anthony fears the long-term effect a prolonged trade war will have on stores like his and the fashion industry as a whole.
'You want consumers to come in, fall in love with something, be really comfortable and walk out the store (with it),' he said. 'You don't want tariffs to be top of mind.'
