US-Canada tariff tensions prompt Qahwah House to pause Toronto expansion

Yemeni cafe chain Qahwah House has paused preparations for a Toronto location amid worsening trade relations between the United States and Canada. The company already had its registrations and licence in place but decided to wait for greater clarity.

Qahwah House operates 32 locations across the United States, including three in Dearborn, Michigan. Marketing director Mohamed Ahmed said Canadian visitors account for about 10% of the chain’s Dearborn business.

Canada is Michigan’s largest trading partner, while Dearborn is about a five-minute drive from the nearest border crossing. Canadian visitation to the Detroit region has fallen about 30% since early 2025, according to Brett McWethy of Visit Detroit.

Canadian customers in Dearborn restaurants

Windsor, home to about 25,000 people of Arab descent, has long been an important source of customers for Dearborn’s Arab restaurants and cafes. University of Windsor history professor Robert Nelson said some residents continue crossing for family or work, while others are travelling less to support local businesses.

Khader Masri, owner of Masri Sweets, said the Canadian customers he knows have largely remained loyal. He cited five or six families who still visit, including one from London, Ontario.

Tariffs add uncertainty for businesses

Donald Trump announced 50% tariffs on Canadian imports in July. Ottawa responded with sanctions on US goods that took effect on 8 September; talks last month failed to resolve the dispute.

The wider Michigan restaurant industry is also facing pressure. An April report by the Michigan Restaurant and Lodging Association found that more than half of businesses reported declining sales, compared with 39% nationally. Ahmed said Qahwah House has also postponed buying furniture from a Canadian supplier because of the uncertainty.