Puzzle enthusiasts are used to finding where things fit. But the ongoing Canada-U.S. trade war has scrambled the picture, forcing business owners to navigate uncertainty and pick up the pieces.
“It’s the uncertainty. It’s nearly impossible to navigate,” said Bruce Donnelly, owner of Puzzles Canada in Georgetown, Ont. One of the country’s largest puzzle retailers, Donnelly’s store carries 92 jigsaw brands and thousands of designs, shipping thousands of puzzles each week.
Now, those shipments are down—significantly.
Canada’s retaliatory tariffs, imposed in March in response to U.S. trade policies under Donald Trump, include a 25% tax on U.S.-made jigsaw puzzles. The change blindsided Donnelly.
“We had shipments en route. We didn’t have a choice. We had to pay the tariff,” he said. Not wanting to raise prices for customers, Donnelly’s business absorbed the cost.
Though American buyers make up only 20% of his customer base, the impact has been sharp. Half of the brands Donnelly sells are manufactured in China—making them expensive to ship to the U.S., where the tariff was initially as high as 145%, later reduced to 30%.
“We’re definitely taking a hit,” Donnelly said.
He’s had to halt U.S. shipments of China-made puzzles and raise prices on American-made games from brands like White Mountain, Springbok, and New York Puzzle Co. He’s now importing more from Europe and focusing on Canadian sales—but even so, he estimates U.S. sales could be cut in half.
And Donnelly isn’t alone.
Mia Galison, owner of New York-based eeBoo Corporation, is also feeling the strain. Her company sells puzzles and children’s toys, many of which are made in China.
“It’s devastating. We are a very small company. We don’t work on huge margins,” she said.
Like Donnelly, Galison has raised prices, aiming to keep them under $25 USD, but it’s not enough to cover the mounting costs. She’s holding out hope for exemptions or relief for small businesses like hers.
“It’s not just empty shelves I worry about,” Galison said. “It’s the truck drivers, dock workers, sales reps, and small business owners losing their livelihoods.”
Puzzles aren’t the only surprising items hit by tariffs. Canada has also slapped duties on U.S.-made products like toilet seats and bowling balls. According to international trade lawyer Lawrence Herman, these items were chosen deliberately to pressure American lawmakers.
“These products were selected to maximize political discomfort in the U.S.,” Herman said. “The hope is that affected businesses will lobby their representatives to ease tariffs on Canadian goods.”
In the meantime, Herman advises Canadian businesses to explore new markets in Europe or the Asia-Pacific.
One possible solution—shifting production from China to North America—isn’t simple. Galison says building domestic manufacturing capacity to match current quality standards could take decades and isn’t financially viable for a company her size.
For now, both Donnelly and Galison are doing their best to stay afloat in a market turned upside down by policy and politics.
By – CBC Radio