As trade negotiations between Canada and the U.S. stall, local businesses are left to navigate higher costs, tight margins and a shifting economic landscape.
DENVER — President Donald Trump ended trade talks with Canada after taking offense to a Canadian television ad that used the words of former President Ronald Reagan to criticize U.S. tariffs.
The move has sparked renewed concern among some small business owners, already dealing with increased costs linked to tariffs on aluminum imports from Canada.
Dan Diebolt co-owns Diebolt Brewing Company in Denver with his son. The microbrewery has been around for the last 12 years.
As trade negotiations stall, local businesses like theirs are left to navigate higher costs, already tight margins and a shifting economic landscape.
“This last delivery I have of aluminum cans, it turns out they’re up 20%,” Diebolt said.
Between inflation, tariffs and other costs associated with running a small business, he said it all adds up.
The two countries share the longest international land border in the world at more than 5,500 miles. Canada has long been one of America’s top two trading partners.
“We’re kind of an on-demand facility, which means we’ll try and buy a small amount of anything as we can,” he said. “With cans, it’s about a three or four-month supply.”
Diebolt says it’s not just craft brewers feeling the pinch, and crafting a long-term plan for growth has become all the more challenging.
MSU Denver economics professor Kishore Kulkarni remains optimistic about the future, despite the apparent breakdown in talks between the two nations.
He points to their historic ties – politically, economically and socially.
“Canadian trade is very important for us,” Kulkarni said. “Our prices do, in general, depend on the Canadian inputs to the U.S.”
As for Diebolt, he said the key to long-term survival for any business is stability.
“Honestly, if you run a business, you should have a five-year plan and a ten-year plan,” Diebolt said. “When a small business can’t make a long-term commitment because basically what they’re seeing is the juice is not worth the squeeze.”
