For Luna Collective, a beloved Victoria small business, an unexpected tariff charge has left them scrambling for answersB次元官网网址攁nd facing higher costs.
Luna Collective, a staple in the Victoria small business scene since 2017, was slammed with a new line on their invoice, labelled "surtax."
The surtax referred to the newly imposed 25 per cent tariffs on American goods, which cost the company an additional $1,262.91 on an order placed in January.
Eryn Beattie, owner of Luna Collective, said she found out about the tariff after the order had already shipped.
She received an email from UPS requesting more information. To clear the shipment, she had to submit documentation proving the goods were made in the U.S. Once the package cleared customs, she logged into her Canada Border Services Agency (CBSA) account and saw the tariff charge on the declaration.
"IB次元官网网址檝e done a lot of reading, IB次元官网网址檝e looked at government websites, but the information has been pretty vague. It was hard to even know what was actually going to happen with stuff weB次元官网网址檝e ordered."
While tariffs have been deemed pending for the past month and a half, Beattie indicates that businesses haven't received any explanation of the items that may or may not be included.
"There's really been nobody reaching out to us, nobody providing information," Beattie said. "It's kind of all just figuring it out as we go."
Luna Collective curates its inventory with handmade, sustainable products that city dwellers have come to love.
"We focus on sustainability, and part of that is sourcing products from closer to home. Now we have to rethink what that means for our business."
Currently, 30 per cent of the inventory at Luna Collective is sourced from the United States, a number that may start to change depending on the length of the tariffs.
But with the amount of items sourced from outside of Canada, Beattie says that her clientele has gotten used to these products, and it will be tough to just pull them from the shelves.
"We might reconsider certain orders, but it's unfortunate because weB次元官网网址檝e built great relationships with these brands, and our customers love their products," Beattie said. "We work with a lot of small businesses B次元官网网址� young entrepreneurs like us B次元官网网址� and itB次元官网网址檚 unfortunate that the relationships weB次元官网网址檝e built are now in limbo."
With these relationships potentially up in the air, Beattie emphasized that these cross-border businesses aren't the enemy amid the tariff war between the countries.
"We don't see these small businesses in the States as the enemy. We want to keep supporting them," Beattie said. "We still donB次元官网网址檛 know how long this is going to last. Is this a temporary situation or a permanent shift? That makes a big difference in how we plan."
Still, Beattie remains hopeful. "We'll adapt, but itB次元官网网址檚 crucial to support our customers and the small businesses we work with," she said.
Her resilience mirrors that of many small business owners, determined to find a way through these unprecedented times.