The Struggle of a Small Business: Navigating the Impact of Tariffs

Introduction to Origins Coffee Roasters

Origins Coffee Roasters, a small business based in British Columbia, has been a staple on Granville Island since its establishment in 1999. Owned by John Sanders, this wholesale coffee company proudly serves cafes and individual customers across Canada. With only two employees, the business operates on a tight margin, relying heavily on imported goods to sustain its operations. Recently, Origins Coffee Roasters secured a significant contract with OEB Breakfast Co., a well-known chain with 20 locations in Canada and two in the U.S. While this deal represents a major milestone for the company, it has also introduced a new challenge: the financial burden of tariffs on imported equipment.

The Financial Hit of Tariffs

The contract with OEB Breakfast Co. requires Origins Coffee Roasters to supply over $100,000 worth of specialized coffee equipment, all of which is manufactured in the U.S. While this deal is a testament to the company’s growing reputation, it has come at a steep cost. Sanders recently received a $25,000 tariff charge, which has dealt a significant blow to the business’s bottom line. “Business is hard. Expenses are hard,” Sanders remarked, highlighting the struggles of running a small business in an increasingly complex economic landscape. The tariff charge is particularly concerning, as it will take approximately 1.5 years to recuperate through the company’s finances.

The Necessity of Importing Equipment

Sanders emphasized that his business has no choice but to import the necessary equipment from the U.S., as there are no Canadian manufacturers producing the specialized coffee grinders and brewers required to fulfill the OEB contract. “There’s no manufacturer in Canada that creates any of this equipment,” he explained. This lack of domestic alternatives has left Origins Coffee Roasters in a difficult position, forced to absorb the additional costs of tariffs rather than passing them on to customers. Sanders made it clear that the company cannot afford to raise its prices, as this would likely drive away customers and harm its competitive edge in the market.

The Call for Government Support

Sanders is calling on the government to reassess its approach to tariffs and to consider the impact on small businesses like his own. He pointed out that many Canadian coffee companies rely on imports from the U.S., and the current tariff rates are creating a significant financial strain. “Every coffee company in Canada right now that is buying from a U.S. coffee roaster will pay 25 percent more in tariff charges,” he said. “That’s a lot to handle in a small business.” Sanders hopes that policymakers will take a closer look at the products being targeted by tariffs and explore ways to mitigate the burden on businesses with no access to domestic alternatives.

The Commitment to Quality and Local Roots

Despite the challenges posed by tariffs, Sanders remains committed to the values that have made Origins Coffee Roasters successful. He noted that the company’s coffee is a Canadian product, even though the equipment used to produce it comes from the U.S. “One of the initial conversations with OEB was going local, going Canadian because they were buying from a U.S. coffee roaster,” he said. This commitment to supporting local businesses and producing high-quality, Canadian-made coffee is at the heart of Origins Coffee Roasters’ mission. Sanders expressed his passion for the work, despite the frustrations of dealing with tariffs and bureaucratic red tape.

Conclusion: A Small Business’s Fight to Thrive

The story of Origins Coffee Roasters serves as a poignant reminder of the challenges faced by small businesses in an increasingly globalized economy. While the company’s contract with OEB Breakfast Co. represents a major achievement, the associated tariffs have introduced a significant financial hurdle. Sanders and his team are determined to navigate this difficult terrain, but they are calling on the government for support. As long as there are no viable Canadian alternatives for the equipment they need, small businesses like Origins Coffee Roasters will continue to bear the brunt of tariffs. For now, Sanders remains committed to providing high-quality coffee to his customers, even as he works to find a way forward in a system that often seems stacked against small businesses.