BCBusiness
As U.S. tariffs squeeze Canadian entrepreneurs, Vancouver’s Leah Yard Designs pauses southbound orders—highlighting how small businesses across B.C. are struggling to absorb rising cross-border costs.
When Vancouver-based jewelry brand Leah Yard Designs announced earlier this month that it was pausing shipments to the United States, founder Leah Yard knew the decision would send ripples through her growing customer base south of the border. But with new tariffs hitting both sides of the supply chain, she says the numbers no longer added up.
“This was such a difficult decision,” Yard told BCBusiness. “Even though the majority of our customers are in Canada, we’ve been growing our community in the U.S.—especially over the last couple of years. I looked at the numbers to see if we could cover the tariffs for our U.S. customers, and while it’s possible for the short term, it didn’t seem like the most sustainable approach.”
Instead of passing unpredictable border fees onto American customers—or risking delays now that every package is subject to extra processing—Yard hit pause. She’s quick to stress that the move isn’t political: “I don’t agree with the tariff changes, and I certainly don’t agree with how it is impacting small businesses and our communities. I want what’s best for everyone, and that includes our neighbours.”
View this post on Instagram A post shared by Leah Yard Designs | Demi-Fine Jewellery (@leahyarddesigns)
A post shared by Leah Yard Designs | Demi-Fine Jewellery (@leahyarddesigns)
The story highlights a less-discussed dimension of the trade war—how policies crafted in Ottawa and Washington filter down to small business owners operating at razor-thin margins. A recent survey from the Canadian Federation of Independent Business (CFIB) paints a stark picture: one in five small businesses in British Columbia could go under within six months without swift relief.
“What I think a lot of people don’t realize is the impact Canada’s ‘retaliatory tariffs’ had,” Yard explains. Her company relies on U.S. suppliers for materials, and in recent weeks she’s paid nearly $5,000 in additional duties—an unexpected hit for a small brand. “We work with manufacturers in the U.S. and importing materials into Canada was costing us an additional 25 percent. It’s not as easy as just finding new Canadian manufacturers—they don’t exist in all industries, and some of these factories we’ve had relationships with for over a decade.”
Yard describes the new round of costs as “salt in the wound” after years of pandemic-related disruptions, inflation and shifting consumer demand. She’s hardly alone. According to CFIB, eight in 10 B.C. businesses are exposed to the U.S. for trade in some way, and more than half of B.C. businesses are exposed to U.S. steel and aluminum tariffs or Canada’s own tariffs on U.S. goods.
Because Leah Yard Designs manufactures in both Canada and the U.S., the company has some flexibility. Yard is exploring shifting more production to India, where she already works with a trusted partner. Still, she insists on maintaining U.S. supplier relationships even if it means higher prices. “Like many other Canadian brands, we will have to adjust our pricing to help cover additional costs. We will absorb as much as we can, but ultimately our pricing will need to increase to stay afloat.”
That dynamic—squeezed margins, rising sticker prices—is what makes small businesses particularly vulnerable in a trade war. “Even a few thousand dollars to a small brand is a big hit,” Yard says. For entrepreneurs like her, the tariffs can mean the difference between staying in business or shutting down.
Despite the disruption, Yard says her community has rallied. “I have to say, we have the best customers. It doesn’t matter where they live, we have an incredible community. I’ve received many notes from both Canadian and U.S. customers showing their support. It’s what gives me so much hope.”
That support—whether through direct purchases, words of encouragement or referrals—has been crucial as she navigates the uncertainty. “Every kind note, comment, order, referral, review—it all means the world. I don’t think people realize how much impact they have as individuals. Every small brand has a person or small team behind it, and I am so incredibly grateful to everyone who has cheered us on.”
For now, U.S. orders remain on hold. Yard emphasizes that the pause is temporary and that she’s already brainstorming ways to welcome American customers back once the business has a sustainable shipping plan. But her experience is a reminder of how quickly trade policy can reverberate down to storefronts, studios and home-based businesses across B.C.
“Constantly trying to understand and keep up with the changes has added a lot of stress,” she admits. “I feel like I have a million tabs open in my brain all the time!”
Still, she insists that resilience, transparency and community will carry small businesses forward. Whether governments ease tariffs or entrepreneurs find new ways to adapt, the sector’s survival depends on it.
For customers who want to help, Yard has a simple message: keep showing up. In times of tariff turbulence, every purchase—and every gesture of support—can mean the difference between a pause and a permanent closure.
Mihika is the senior editor at BCBusiness. Her work has also appeared in the New York Times, Vox, Globe and Mail, The Walrus, Vogue, Chatelaine, and more.
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