Diving Into U.S.-Canada Tariffs: ‘Are Sprinkles on the List?’

By the Editorial Team · Friday, September 11, 2026

The trade dispute between the United States and Canada has increased costs and uncertainty for small businesses like Sweetapolita, a Toronto-based sprinkle maker whose sales to the U.S. have been disrupted by new tariffs on certain ingredients. While Sweetapolita’s final products currently avoid higher duties, ongoing tensions have led the company to shift focus toward expanding its Canadian market to mitigate risks from unpredictable trade policies.

The escalating trade dispute between the United States and Canada has created uncertainty and challenges for small businesses on both sides of the border, illustrating how broad tariff policies can impact niche markets. Among those affected is Sweetapolita, a Toronto-based company specializing in colorful sprinkles used by clients in both countries.

Rosie Alyea, Sweetapolita’s chief sprinkle officer, described the past year as “extremely disruptive” after changes in U.S. trade policy. Last year, the Trump administration ended a rule that allowed shipments valued at $800 or less to enter the United States duty-free. This change increased shipping costs and affected Sweetapolita’s sales to American customers. More recently, after trade negotiations between the two countries failed, the U.S. imposed new tariffs on a wide range of Canadian products, including wine, dairy, and hockey sticks. Some ingredients used in Sweetapolita’s sprinkles, such as cellulose gum and glucose, are included in the tariff list, raising concerns among suppliers and buyers.

Small business owners on both sides have expressed frustration with the unpredictable and seemingly arbitrary nature of these tariffs. Dan Kelly, president of the Canadian Federation of Independent Business, cautioned that small businesses should not be caught in the crossfire of the ongoing trade tensions. Similarly, John Arensmeyer, chief executive of the Small Business Majority in the U.S., warned that lasting damage could occur, with many firms anticipating the need to raise prices in response to increased costs.

One American customer impacted by the tariffs is Zach Davis, owner of Penny Ice Creamery, which operates seven locations in California. Mr. Davis has been a regular purchaser of Sweetapolita’s sprinkles, particularly valuing their organic and local ingredients, though he made an exception for these colorful embellishments that appeal to children. Despite previous experience paying tariffs on products like refrigerators and freezers, the renewed U.S.-Canada tensions introduced uncertainty about whether the sprinkles themselves would be subject to new duties. When the 50 percent U.S. tariff on some Canadian goods was set to take effect in August, Mr. Davis sought clarity directly from Sweetapolita.

According to Ms. Alyea, sprinkles are classified under a tariff code for confectionery products not listed among those targeted by the latest U.S. tariffs. Although several ingredients used in the sprinkles are tariffed, the final product so far does not appear to carry the increased duties. Shipments have continued without major disruption, offering some relief to Sweetapolita and its customers. Ms. Alyea plans to keep U.S. buyers informed to provide transparency amid the shifting trade landscape.

Despite this brief reprieve, the volatility of the trade conflict has prompted Sweetapolita to focus more on expanding its domestic customer base within Canada, rather than relying heavily on American sales. “We’re really lucky right now,” Ms. Alyea remarked, “we’re just adjacent to a disaster.”

The dispute continues as both countries have imposed retaliatory tariffs following the collapse of trade talks, with business groups urging for a resolution to prevent further harm to small businesses that remain vulnerable to the broader political standoff.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.