With the clock ticking for Canada to finalize a trade agreement with the United States, a significant number of Canadian businesses are feeling anxious. They fear losing up to half of their sales if the new tariffs are imposed. The impending U.S. tariffs, scheduled for Wednesday, will impact a wide range of Canadian products, including electronics, dairy, alcohol, and wood, adding to the existing trade sanctions.
Negotiations are reaching a critical stage, with Canadian officials likely to meet U.S. Trade Representative Jamieson Greer before Prime Minister Mark Carney and President Donald Trump confer ahead of the tariff deadline. The ultimate decision rests with President Trump, who holds the authority to approve any deal.
Some Canadian businesses are concerned that the proposed tariffs will not only raise prices for American customers but also render cross-border shipping economically unfeasible. Todd Stafford, the president of Northern Cables based in Brockville, Ontario, highlighted that half of their sales come from U.S. buyers. The company specializes in manufacturing copper and aluminum power cables for commercial and industrial applications.
If the new tariffs take effect, Stafford fears losing all U.S. business immediately, which could impact the company’s 320 employees in Brockville. The tariffs would exacerbate existing challenges like slowing condo construction and competition from cheaper Chinese products, potentially leading to layoffs.
Despite the protective shield of the Canada-U.S.-Mexico Agreement (CUSMA) covering most cross-border trade, the upcoming tariffs could affect around five percent of Canada’s trade with the U.S. The list of affected Canadian exports includes items such as hockey sticks, specific flowers, and antiques, while energy, potash, and critical minerals remain exempt.
The Canadian Federation of Independent Business (CFIB) expressed concerns about the potential impact of losing 50 percent of revenue on businesses. Business owners like Cindy Baldassi, who runs a Calgary-based handmade jewelry company, are already taking measures to mitigate the impact by halting U.S. shipments and increasing prices.
Amid uncertainties, some businesses have already felt the repercussions of the tariff threat. Randy Williams from Monterey Textiles mentioned that despite strong operations in Canada, other textile manufacturers have faced challenges such as layoffs and dwindling orders due to the looming tariffs.
In Alberta, beekeepers like Lorne Prins are bracing for the impact of the proposed tariffs on honey exports to the U.S. The uncertainty surrounding the tariffs has led to rushed shipments and concerns about surplus honey affecting local prices. Canadian businesses are hoping for local support through initiatives like the Buy Canadian movement in case the tariffs come into effect.
