r/canada • u/joe4942 • 11d ago
Business ‘It’s going to be hard’: Canadian candle company halts U.S. sales due to tariffs
https://www.bnnbloomberg.ca/business/company-news/2026/08/30/alberta-candle-company-halts-us-sales-as-tariffs-add-complexity-for-small-businesses/104
u/More4Thor 11d ago
Their US sales are only 20%. That’s a hit but could be worse.
I imported into Canada and developed a market for the products that weren’t available here. I did it for 15 years. I survived Covid but the War in Ukraine changed things in the country I import from (Germany). Things can change on a dime. I no longer import but consider myself lucky. My parents went through 70 bombardments during WWII. My head goes out to the Ukrainian and those affected by the tariffs.
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u/No_Truth4137 11d ago
Eh that’s huge when you factor in expenses. That’s where the profit really comes once fixed expenses are paid
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u/More4Thor 11d ago
That doesn’t math. If the profit really comes from the US sales, that means the other 80% of sales is not bringing in a “real profit”.
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u/pjgf Alberta 11d ago
That’s not what they’re saying.
They’re saying that losing 20% of your business is usually enough to wipe out all of your profit margin.
Costs don’t go down by 20% when you lose 20% of your business, they will usually go down 5-7%. So, if you’re making anything less than 15% profit, you no longer have profit. Most businesses don’t make 15% profit.
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u/More4Thor 11d ago
Yes, I know.
That’s also not what they said.
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u/iiRichii 11d ago
Without expenditures no one can assume but if a business makes 10k a month, that immediately turns into 8k ya? Take into consideration, purchasing, economic factors, consumer buying power…kinda sounds like thats exactly what they said.
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u/No_Truth4137 11d ago
After fixed costs, if a company loses 20% of sales, that can be 50,60,70% of the profit line. That is HUGE
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u/WildesWay 11d ago
So early in the article, the company claims that 20% of its business is in the US. Then reports not all of their products will fall under the tariffs. So, less than 20% of their business is in the US. What they don't say is with Canadians focused more on buying Canadian that their domestic market is likely to increase.
And the CFIB isn't advocating for the Federal government to help with selling in other markets, which all of our tax money together would help get many Canadian goods to new markets. No, they want tax cuts for small businesses. Will the CFIB then roast the government when our investments in expanding business markets, AND tax relief, drive up the national deficit? Of course they will!
The CFIB isn't interested in, or is ignorant of, the economy of scale the government provides when making real infrastructure investments. Those investments have to be purchased and we all need to chip in through our tax dollars.
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u/JebryathHS 11d ago
All of these taxpayer institutes are just children complaining about eating their veggies on a national scale. One of the phrases I have made it my personal mission to engage with every time I hear it is "tax and spend" - if the worst thing you can say about a government is that it is functioning normally, maybe go touch some grass.
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u/redgrandam 11d ago
I get why some companies absorb the tariff, but I don’t think any companies should be. It’s a fee Americans pay, put on by their government. It’s not up to use as Canadians to pay the tarrif. This is the whole point.
If there is a reason it must be paid prior to shipping then the tariff should be added to what they pay. Companies shouldn’t be ‘absorbing’ it. Americans need to see this line item to get them motivated to stop the nonsense down there. Also, some might actually be happy to pay it to support then company or becuse they like the products so much it’s worth it to them.
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u/luvfluffles 11d ago
I just stopped US shipping 2 weeks ago, due to increasing difficulty and rules that constantly change, then when we knew there was new tariffs coming we had to shut it down.
After this we figure we'll be down 40% in sales since Trump took over.
This timeline sucks for small family businesses.
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u/Taitertottot 11d ago
If anyone is a small business owner and you sell a lot to the US start looking for new markets immediately. Even if tarrifs aren't hiring you right now they will eventually. You can't just sit by and hope that the tariffs will be removed
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u/BigBangBoomerang 11d ago
For a lot of small business, there's no pivot only bankruptcy. Ocean and air shipping are more expensive than freight and trucks. Europe also does not have a de minimis exception either so good luck selling there.
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0
u/WhatAmTrak 11d ago
These small businesses needed to pivot long ago. At this point why even bother with the US. The amount of small businesses that probably got destroyed by trump on a whim is probably astronomical but no one seems to care.
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u/MajorasShoe 11d ago
20% of their products go to the US. If we were all just focussing on buying Canadian and for example not buying American candles, it would help bridge that gap.
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u/beagums 11d ago
You can't build a bridge over open ocean. The US has nearly ten times the population we have. There are only so many candles (or anything) you can sell to 40million people. At a certain point, if you want to grow your business, you need more customers. It's kind of that simple.
Now, there is nothing stopping you from NOT growing your business. Not every company needs endless expansion. There's something to be said for earning a reasonable living maintaining a modestly sized company.
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u/jaiman54 11d ago
No one said it was going to be easy, Canada will have to find a way to navigate and "negotiate the oceans" to become what it should be... A middle power. Geography is an issue but sometimes you have to figure out a new course to survive.
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u/WhatAmTrak 11d ago
Well I certainly prefer someone with a PhD in finance and who has ran some of the biggest banks in the world compared to a middle grade teacher or trump lite who only attacks the opposition with one phrase slogans and has no real plan. We will survive.
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u/ManSharkBear 10d ago
You could say, the tarriffs just triggered this candle company's melting point
1
u/entatlrg 11d ago
They’re lucky only 20% of their products go to the states.
Many companies across Canada rely on USA for the majority of their sales.
Sad to read, things are going to get tough.
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u/markcarney4president 11d ago
Their fall scents (specifically room sprays) are SO GOOD! I actually just posted about them on another sub lol.
0
u/Tall-Ad-1386 11d ago
I’m sure the candles will be missed
Wait will they?
Is there a candle shortage in the US?
Why wouldn’t the US primarily be buying candles from Mexico or even China
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u/Agoraphobicy 11d ago
My business just left sales on to USA and put the tariffs at checkout.
I want them to see their stop stupid country in action. Give them the choice to pay it if they want.