For a Toronto entrepreneur who makes tiny figures for model railroads, the consequences of Donald Trump’s trade war have been anything but small. Bernard Hellen, owner of Miniprints, says more than 40% of his American customers have disappeared since Washington imposed 50% tariffs on a broad range of Canadian products in August 2026.
The business previously depended on the United States for approximately 85% of its shipments, making the sudden disruption particularly damaging.
What makes Hellen’s situation more frustrating is that Ottawa has announced C$7.5 billion in assistance for tariff-affected businesses, yet his company falls below the revenue requirements for major federal relief programs.
His experience illustrates a growing problem in Canada’s trade conflict with Washington: small exporters can suffer serious financial losses while remaining too small to qualify for some of the programs designed to help struggling businesses.
A Toronto Miniature Maker Faces a Very Large Trade Problem
Bernard Hellen operates Miniprints, a Toronto business specializing in detailed miniature figures and accessories for model railroad enthusiasts. Its products include tiny people, animals, vehicles and objects used to create realistic scenes around model trains. Customers can even commission miniature versions of themselves. Despite serving a highly specialized hobby market, Hellen has built an international customer base, with shipments reaching 36 countries across nearly every continent.
However, the business’s global presence concealed a significant vulnerability. Before the latest tariffs, approximately 85% of its shipments went to American customers, representing around 400 boxes each month. Those orders provided access to a far larger community of model railroad enthusiasts than Canada alone could offer.
Hellen now expects to ship approximately 271 boxes worldwide during October. Although that figure is not directly comparable with his previous U.S.-only shipment volume, it illustrates the disruption his business is experiencing.
For an entrepreneur who spent years building relationships with American hobbyists, replacing established customers in unfamiliar markets is far more complicated than simply opening international shipping options.
Trump’s 50% Tariffs Eliminated an Important Trade Advantage
The financial disruption began when the United States implemented additional 50% tariffs on selected Canadian products on August 22, 2026. The measures were imposed under Section 338 of the Tariff Act of 1930, an unusual trade authority allowing Washington to respond to what it considers discriminatory foreign trade practices. The affected merchandise included textiles, furniture, plastics, electronics, sporting goods and numerous other product categories.
For Miniprints, the critical detail was its customs classification. Its products fall under Harmonized Tariff Schedule code 9503, which includes toys, dolls, puzzles and scale models. Hellen’s merchandise had previously benefited from preferential treatment under the Canada-United States-Mexico Agreement, helping protect sales from earlier tariff measures.
The new Section 338 duties changed that arrangement. Unlike some earlier trade restrictions, these tariffs apply to covered Canadian products even when they otherwise satisfy CUSMA origin requirements.
Washington argues that the measures respond to Canadian policies affecting American automobiles, dairy and alcoholic beverages. Ottawa disputes that justification and considers the tariffs an unjustified escalation of the trade conflict.
More Than 40% of American Customers Have Disappeared
The immediate consequences for Miniprints have been severe. Hellen told the Financial Post that more than 40% of his American customer base had disappeared since the additional tariffs took effect. For a business that depended heavily on cross-border purchases, losing such a substantial share of established buyers within weeks presents an obvious financial challenge.
Rather than absorbing the entire tariff himself, Hellen began passing the additional 50% charge through to American customers. His website also explains the new duties, helping customers understand why their purchases have become more expensive. Some loyal buyers have continued ordering despite the additional cost, something Hellen acknowledged with a degree of surprise.
The distinction between customer losses and revenue losses is important. A 40% reduction in customer numbers does not necessarily mean sales revenue declined by precisely 40%, because customers may place orders of different values.
Nevertheless, the change creates considerable uncertainty. A miniature model that once represented an affordable hobby purchase can become noticeably less attractive when customs charges are added.
Ottawa Announced C$7.5 Billion in Relief for Tariff-Affected Businesses
Recognizing the damage caused by the escalating trade dispute, the federal government announced a C$7.5 billion package on August 25, 2026. The initiative was intended to support Canadian businesses, preserve employment and help companies adjust to changing trade conditions. It built upon earlier support measures introduced during the prolonged tariff confrontation.
The package included an additional C$1.5 billion for the Regional Tariff Response Initiative, delivered through regional development agencies. Another C$500 million was directed toward liquidity support through the Business Development Bank of Canada’s Pivot to Grow program. Ottawa also allocated C$2 billion to the Canada Strong Diversification Fund and C$3.5 billion to worker and employer support measures.
On paper, these commitments represent substantial financial assistance for companies affected by American trade restrictions. However, the programs serve different purposes and are not equivalent to unrestricted cash grants available to every struggling exporter.
Some provide loans, others finance business transformation or capital investments, and certain measures support workers facing layoffs.
That distinction matters to entrepreneurs whose most immediate problem is the disappearance of customers rather than the cost of expanding facilities or replacing industrial equipment.
Federal Revenue Requirements Leave Miniprints Outside Major Programs
Despite suffering direct losses from American tariffs, Miniprints does not meet the eligibility requirements for several major federal assistance programs. Hellen told the Financial Post that his business generates less than C$1 million in annual revenue, placing it below the minimum threshold established for the government’s main regional tariff response initiative and certain Business Development Bank of Canada programs.
Ottawa lowered the minimum annual revenue requirement for targeted BDC tariff-related financing to C$1 million, expanding access compared with previous criteria. Yet that change still leaves smaller enterprises outside those particular funding streams. The regional initiative similarly uses a C$1 million revenue threshold for eligible businesses.
Other programs have much higher requirements. One stream of the Canada Strong Diversification Fund requires applicants to generate at least C$20 million annually, employ 10 full-time-equivalent workers and demonstrate substantial historical capital expenditures.
These are program-specific restrictions, not proof that every federal or provincial assistance option is unavailable.
For Hellen, however, the immediate contradiction remains: his business is large enough to participate in international trade but too small to qualify for important components of Ottawa’s announced support.
More Than 53,000 Canadian Businesses Face Direct Tariff Exposure
Hellen’s experience reflects a problem extending far beyond the miniature-model industry. According to estimates released by the Canadian Federation of Independent Business on September 10, approximately 53,112 Canadian small and medium-sized businesses were directly affected by American tariffs, Canadian counter-tariffs or both.
The organization identified 13,160 affected exporters and 45,414 affected importers, with some businesses belonging to both categories. The figures illustrate how trade restrictions can affect companies selling into the United States as well as those purchasing American merchandise for use in Canada.
A separate CFIB survey conducted between August 28 and August 31 found that 46% of surveyed Canadian exporters serving the United States were affected by Section 338 tariffs. Among affected exporters, 18% believed they could become financially unviable if the trade war continued for at least three months.
The survey also highlighted how difficult tariffs are to manage. Some businesses expected to absorb most additional costs, while others intended to pass those costs to customers.
Neither option guarantees survival when buyers can postpone purchases or choose alternative suppliers.
Canada’s Retaliatory Tariffs Create Additional Pressure on Businesses
Ottawa responded to Washington’s latest measures by introducing additional tariffs on selected American goods beginning September 8, 2026. Canadian surtaxes of 15%, 25% and 50% were applied to designated products, with the government seeking to match American restrictions in both value and applicable rates.
The retaliatory measures targeted approximately C$27.6 billion in American imports, including products from sectors such as steel, furniture, dairy, electronics and agricultural equipment. Federal officials argued that the response was necessary to protect Canadian industries and demonstrate that economic pressure would not go unanswered.
However, retaliation also creates difficulties for Canadian companies that depend on American suppliers. Importers purchasing affected merchandise can face higher expenses, while manufacturers using American components may have to reconsider purchasing arrangements.
This produces an uncomfortable situation for smaller businesses. They can lose customers because of U.S. import tariffs while also facing increased operating costs from Canadian countermeasures.
University of Saskatchewan business-school dean Keith Willoughby has questioned the benefits of retaliatory tariffs, warning that Canadian consumers ultimately bear some of the resulting costs.
The political justification for retaliation and its immediate economic consequences are therefore separate considerations.
Small Businesses Are Building Their Own Canadian Support Networks
With government assistance difficult to access and American customers disappearing, Hellen has started pursuing a different strategy: building stronger relationships within Canada’s model railroad industry. He and 10 other industry colleagues recently created the Canadian Model Railroad Manufacturers coalition, known as CMRM.
The organization brings together domestic manufacturers to promote Canadian-made products, improve visibility and encourage hobbyists to purchase from local suppliers. Its activities include shared promotion through social media, industry events and a directory connecting customers with Canadian model railroad businesses. Participating manufacturers include companies producing miniature figures, scenery, structures and model railway components.
The initiative illustrates how smaller enterprises can cooperate when their individual marketing budgets are limited.
Hellen is also exploring events that could bring hobbyists together and encourage more Canadian purchases. Such efforts could help build customer relationships less exposed to American tariff decisions.
Yet domestic demand cannot necessarily replace the U.S. market quickly. Canada has a smaller population, and specialized hobby businesses depend on buyers with very specific interests.
The coalition offers a practical response, but its success will depend on whether additional Canadian demand can offset losses abroad.
Economists Warn That Prolonged Trade Uncertainty Could Cause Lasting Damage
The broader Canadian economy has demonstrated resilience in some areas despite the worsening trade relationship. Statistics Canada reported that merchandise exports to the United States increased 8.1% in August 2026, contributing to a Canadian trade surplus of C$11.2 billion with its southern neighbour.
However, Statistics Canada cautioned that businesses may have accelerated shipments before the new tariffs took effect. Stronger exports during that month therefore do not necessarily indicate that companies will avoid financial damage once the higher duties are fully reflected in trade activity.
Economists disagree about how severe the longer-term consequences could become. Keith Willoughby has warned that prolonged trade uncertainty could weaken investment and potentially push Canada toward recessionary conditions.
Tony Stillo, director of Canada economics at Oxford Economics, has offered a less severe outlook. He forecast annualized economic growth of approximately 2.2% in the third quarter of 2026, slowing toward 1% in the fourth quarter and early 2027.
These are forecasts rather than confirmed outcomes. Nevertheless, both assessments recognize that prolonged uncertainty can discourage investment and force businesses to reconsider their operations.
For smaller exporters, those decisions may arrive much sooner than changes become visible in national economic statistics.
Small Business Advocates Want Relief That Reaches Companies Below C$1 Million
The Canadian Federation of Independent Business has urged Ottawa to redesign its assistance programs so smaller companies can access meaningful support. In September, the organization argued that existing eligibility requirements excluded approximately half of Canada’s small business community, despite changes intended to improve accessibility.
Among its proposals was a dedicated Small Business Tariff Relief program that could provide up to C$70,000 to qualifying businesses able to demonstrate direct tariff-related expenses or absorbed costs. CFIB also recommended establishing a specialized tariff-remission service and reducing the federal small business corporate tax rate from 9% to 6%.
These recommendations are proposals from the business organization, not measures that Ottawa has already adopted.
Meanwhile, a quick resolution to the broader trade dispute remains uncertain. On October 8, U.S. Trade Representative Jamieson Greer indicated that Washington was maintaining its negotiating position, although communication between the two governments continued.
For Hellen, the immediate priority is keeping Miniprints operating while rebuilding sales and developing its Canadian customer base.
His experience exposes a difficult policy question: whether assistance designed to protect Canadian businesses should depend so heavily on their size when even the smallest exporters can experience serious consequences from international trade decisions.
With more than 40% of his American customers gone, the future of Miniprints may depend as much on local support and entrepreneurial adaptation as on the outcome of negotiations in Washington.
