'Hardest challenge yet': Canadian business reacts to Trump's 50% tariff threat | Hanomansing Tonight

[00:00:00]It's been an anxious time for a lot of Canadian business owners and our next guest is one of those. She's the founder of a company that makes planners and notebooks. Tia Massisch, the CEO and founder of Hemlock and Oak. Thank you very much for coming in here. Beautiful looking planners that you have there.

[00:00:15]>> Thank you. Thank you.

[00:00:16]>> printed in Canada.

[00:00:17]>> Yeah, they're printed and bound in Canada over in um Toronto. And we design and uh process them all here. We even add customizations as well to them.

[00:00:29]>> Yeah. They're They're very handsome looking uh planners. Uh so and how how important is the US market for your company?

[00:00:36]>> So we've always been very focused on Canada, but we've loved to open to America because there's a lot of people down there that love planners and notebooks. And actually a lot of people that like to support Canadian made and sustainable. So they actually make up half of our audience right now. Yeah.

[00:00:52]>> So yesterday, I think it was around 2:00 Pacific time when we heard the news about these tariffs, we didn't see them coming. We had no idea this was happening. How did the news land for you?

[00:01:03]>> Honestly, I haven't slept much. Um it's been very difficult running the numbers, figuring out what we can do.

[00:01:11]Um we don't want to punish anyone because of these tariffs and it's Yeah, it's very stressful and scary.

[00:01:18]>> Yeah. So run the numbers. I mean like if if they come to pass and they may not come to pass, right? This may be some kind of negotiating ploy by by Trump as he kind of plays with people like you.

[00:01:31]Um but if it were to happen, how do you deal with that? How how do you slap on an extra 50% on your wholesale cost to the United States?

[00:01:41]>> Well, it's very um stressful for us in particular because we have about 1,300 Americans that have already pre-ordered their 2027 planners.

[00:01:50]Um so when we run the costs, we're looking up to $100,000 just to get those planners down to them with the disbursement fees.

[00:01:59]Um, it's pretty stressful because we don't want to punish customers that have actually helped us manufacture in Canada.

[00:02:06]>> So, those pre-orders for next year's planners, have they already paid?

[00:02:11]>> Yes, they have.

[00:02:12]>> So, basically those contracts, I mean, if you want to look at it kind of technically, are are done.

[00:02:17]>> Exactly.

[00:02:17]>> And now your unit cost potentially could be going up.

[00:02:22]>> Uh, I mean, we're looking probably at like [clears throat] in the negatives um, just to make sure that we don't have brand damage from people that uh, get these surprise fees. We don't want them to be punished that way.

[00:02:33]>> Yeah.

[00:02:33]>> Um, so we're going to make sure that everyone who's already pre-ordered is not punished for that.

[00:02:39]>> What is that? If again, I keep saying because I think it's really important to remember, if it were to happen, right?

[00:02:44]Because it may not. But if it were to happen, did you say it'd be an extra $100,000 just to fulfill those orders?

[00:02:49]And I feel like your company is not so huge that you can just absorb 100 grand.

[00:02:54]So, what would that mean for you?

[00:02:55]>> Um, it's it's quite it's it's definitely um, challenging. We are currently working on plans to try to help us through that if that's the worst case scenario.

[00:03:07]Um, and honestly just reaching out more to Canadians to help us during this time.

[00:03:13]>> And by that you mean Canadians to buy, yeah?

[00:03:15]>> Yeah, buy Canadian.

[00:03:16]>> had somebody a representative here yesterday from the BC wine industry. And one of the things he said is the message here should be for Canadians. There's something we can control is buy Canadian.

[00:03:27]>> Yeah, as much as you can, support local because um, it's the lifeline for small business right now. Yeah.

[00:03:34]>> It's tough to run a business, I'm sure.

[00:03:36]Um, and then things like COVID come along which we have no control over and you just have to adjust. It strikes me that the problem here is this is a human caused problem.

[00:03:47]>> Yeah.

[00:03:47]>> It must be frustrating for you.

[00:03:50]>> Uh, it is it is frustrating definitely, especially when we're doing our best, you know, we are trying to pay um living wage to our staff. We're trying to be sustainable. We're trying to keep things open to America and other countries that want the planners. Um And yeah, it does feel a little bit like you get punished in [clears throat] in the crossfire, so to speak. Yeah.

[00:04:12]>> no sleep last night. What What are you going to be doing over the next few days?

[00:04:15]>> Um lots of planning, a little bit of stressing, thinking about how we can continue to bring products that um people enjoy without, you know, it severely hampering our business.

[00:04:27]Um but I'm going to fight for it. We're going to fight for it. And I think, you know, we have a lot of suppliers and manufacturers counting on us as well.

[00:04:35]Um so, there's a lot of people involved and I'm very determined to make sure that we survive.

[00:04:40]>> And in the meantime, your message for Canadians watching?

[00:04:43]>> Buy Canadian. Um yeah, you're you're our lifeline.

[00:04:49]>> To your message uh CEO and founder Hemlock and Oak. Thank you very much for coming in.

[00:04:53]>> Yeah, thank you.