As I sipped my morning coffee and read about the latest trade war drama between the US and Canada, I couldn’t help but chuckle at the absurdity of it all. Canada said it had been attacked, while the US claimed it had been ripped off for years – it’s like a bad divorce, but with tariffs and trade agreements instead of custody battles and alimony. Meanwhile, Louis Patenaude, the owner of Half-Way House Freight Forwarding, was just trying to sort out boxes and keep his business running smoothly, despite being stuck right in the middle of the chaos.
The Half-Way House is a unique operation, with one end of the building located in Fort Covington, New York, and the other end in Dundee, Quebec. A thick black line painted across the floor shows where Canada ends and America begins, making it a convenient spot for Canadians who want to buy something that only ships within the US, or for those looking to avoid hefty shipping fees. Patenaude’s business has been around for decades, and he’s seen his fair share of ups and downs, but the current trade war has him scratching his head.
Patenaude’s family has roots on both sides of the border, and he’s convinced that the trade partnerships between the US and Canada will be hard to unwind. He’s not alone in his thoughts, as economists agree that companies and consumers will bear the brunt of the tariffs, not foreign countries. The trade war has already led to a new wave of tariffs on hundreds of consumer goods, with President Trump slapping 50% tariffs on about $20 billion in Canadian products, and Canada retaliating with its own set of tariffs on US steel and aluminum, paper products, construction materials, home appliances, and agricultural products.
As the trade war continues to escalate, Patenaude’s customers are starting to feel the pinch. Some have been asking how much of a hit to expect, but Patenaude says he doesn’t “even have a clue.” The Bank of Canada found that prices for tariffed goods rose about 6 percent more than non-tariffed goods, and that prices generally went back down to pre-tariff levels about three months after the levies were removed. However, prices also depended on how bad retailers thought the trade war could get, which is a bit like trying to predict the weather – it’s all about uncertainty and unpredictability.
Despite the uncertainty, Patenaude’s business continues to chug along, with 3,000 customers making the trek to the Half-Way House as often as needed. The business has a modest website and a Facebook page, which lets customers know if the driveway hasn’t been plowed or if it’ll be closed for an American holiday. Patenaude could grow the business even more, but he’s not interested in expanding – he’s happy with the way things are, even if the building does need a few repairs. In fact, the Half-Way House is up for sale, with two parcels available – one in New York, one in Quebec – for $3
Armchair patriot. Believes in the free market, cold beer, and that there’s always a guy named George behind every CNN segment.
Former remote-throwing champion turned #1 couch commentator on liberal panic in the media. Born in Texas (or so his mug says), he earned a degree in Fake Newsology & Beer Philosophy from YouTube University.
