SWFL small businesses brace for Trump's 50% Canada tariff

FORT MYERS, Fla. (WINK)—President Donald Trump plans to impose a 50% tariff on certain Canadian goods next month, and some Southwest Florida small business owners are already bracing for the impact.

The imposed tariff would impact hundreds of Canadian goods, including dairy products, hockey sticks, electronics, apparel, and wine. 

The White House says the move is meant to counter what it calls Canada's "unfair treatment" of U.S. products, including cars, alcohol and dairy. But local businesses worry the new tariffs could drive up costs and hurt their bottom line.

Joe Semansky has owned Red Horse Distillery on Metro Parkway in Lee County for nearly four years. He says the journey hasn't always been easy.

"These bottles have gone from about $1.90 each to about $3 a bottle now," Semansky said. "The other bottles that I showed you before, these went from about 65 cents to about $1.65. I've really struggled keeping my prices where they're at."

The new tariffs make Semansky nervous since most of his bottles come from Canada.

"As you can see, we use quite a few bottles, different style bottles, and some come out of Canada," Semansky said. "I like to buy stuff locally if I can, or at least made in the United States. But that's been a concern."

Dr. Victor Claar, an associate economics professor at FGCU, says that though the tariffs are intended to pressure Canada, they could affect more American workers than expected.

"There is this temptation to fight back against tariffs from other countries because they don't seem fair," Claar said. "But on the other hand, you're basically hurting yourself in an effort to try to get the other country to do something different from what they're currently doing."

Businesses already struggling could suffer more by imposing the tariffs, Claar said.

"Whether it's a construction project or food service, whatever that is, the cost for the firm is now more, and it makes it hard for that American company to keep their employees and also to keep prices low at a time when everybody's sick of inflation and high prices," Claar said.

Semansky says his love for meeting new people and passion for working keep him positive even when facing unpredictable tariffs and slower foot traffic.

"You've got to work through the tough times," Semansky said. "My wife and I struggle sometimes with things, but you know what? It's just that drive that you have inside of you, being an entrepreneur, that you're going to succeed."

Semansky says he partners with other local businesses to help get his products more visibility. He will start planning for a possible price increase in his bottles. The tariff is not set to go into effect until mid-August.