As the clock ticks down for Canada to finalize a trade agreement with the United States, numerous Canadian businesses are anxious, anticipating a potential loss of up to half of their sales if the new tariffs are implemented. The impending U.S. tariffs, scheduled to come into effect on Wednesday, would impact a wide range of Canadian products, including electronics, dairy, alcohol, wood, and more, adding an extra layer of duty on goods worth $28 billion.
With negotiations reaching a critical stage, Canadian officials might meet with U.S. Trade Representative Jamieson Greer before Prime Minister Mark Carney and U.S. President Donald Trump hold discussions ahead of the tariff deadline. The final decision on any agreement rests with President Trump, as emphasized by America’s chief trade negotiator.
Some Canadian businesses fear that the proposed tariffs could 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, expressed concerns as half of the company’s sales rely on U.S. buyers. Northern Cables specializes in manufacturing copper and aluminum power cables for commercial and industrial purposes.
“At a 50 per cent tariff rate, we would lose all our U.S. business overnight,” said Stafford, highlighting the potential impact of the new tariffs on the company’s operations and employment stability.
Despite the shield provided by the Canada-U.S.-Mexico Agreement (CUSMA) across various sectors, the upcoming tariffs could affect approximately five per cent of Canada’s overall 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 are expected to remain unaffected.
Canadian Federation of Independent Business (CFIB) vice-president Jasmin Guénette underlined the apprehension among business owners, stating that losing half of their revenue would have a significant impact. Business owners like Cindy Baldassi, who runs a jewelry company in Calgary, are already taking preventive measures to mitigate potential losses.
Some businesses have already felt the repercussions of the tariff threat, with reports of layoffs and reduced orders affecting the industry. Despite efforts to adapt, uncertainties surrounding the trade situation continue to loom over businesses on both sides of the border.
Alberta beekeeper Lorne Prins highlighted the urgency among producers to expedite honey shipments to the U.S. before the tariff deadline hits, emphasizing the potential consequences of surplus honey accumulating within Canada and affecting market prices.
In the face of impending tariffs, Canadian businesses are bracing themselves for potential challenges, with hopes pinned on domestic support to navigate the uncertain trade landscape.