As Canada races against time to secure a trade agreement with the United States, numerous Canadian businesses are feeling the pressure, 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 unless a last-minute deal is reached, would impact an additional $28 billion worth of Canadian goods, including electronics, dairy products, alcohol, and lumber, on top of existing trade sanctions.
Negotiations are intensifying as Canadian officials aim to meet with U.S. Trade Representative Jamieson Greer before Prime Minister Mark Carney and U.S. President Donald Trump discuss the tariff deadline. The final decision rests with President Trump, emphasizing the critical role he plays in the negotiation process.
For some Canadian businesses, the proposed tariffs pose a significant threat beyond just increased prices for American customers. They fear that the tariffs could render cross-border shipping economically unfeasible.
Todd Stafford, president of Northern Cables in Brockville, Ontario, highlighted the potential impact on his company, which heavily relies on U.S. buyers for half of its sales. The company specializes in manufacturing copper and aluminum power cables for commercial and industrial applications.
Expressing concerns over the implications of the new tariffs, Stafford emphasized the immediate risk to their U.S. business operations if the tariffs are enforced, potentially leading to a halt in cross-border shipments.
Amid uncertainties, the Canadian business community is bracing for the repercussions of the tariff threat, with fears of substantial revenue losses looming large. The existing shield offered by the Canada-U.S.-Mexico Agreement (CUSMA) has shielded many sectors and businesses from the full impact of trade disputes, but the new tariffs could expose approximately five percent of Canada’s overall trade with the U.S. to levies.
Canadian Federation of Independent Business (CFIB) vice-president Jasmin Guénette underscored the profound concerns among business owners facing the prospect of substantial revenue reductions without the protection of CUSMA.
One such business owner, Cindy Baldassi of CindyLouWho2 based in Calgary, expressed apprehension about potentially losing half of her business due to the new tariffs. She has already taken preemptive measures by suspending U.S. shipping on her platforms and adjusting prices to mitigate potential losses.
As the tariff deadline approaches, business owners like Baldassi are exploring alternative strategies to sustain their operations, with a shift towards domestic markets being a common approach to mitigate the impact of the looming tariffs.
Despite the uncertainty surrounding the outcome of the trade negotiations, the threat of tariffs has already begun to affect businesses. Randy Williams of Monterey Textiles highlighted the challenges faced by the industry, with some companies experiencing layoffs and reduced orders due to the tariff uncertainty.
In Alberta, beekeeper Lorne Prins of Gull Lake Honey shared concerns about the potential surplus of honey in the local market if new tariffs disrupt U.S. sales, emphasizing the need for Canadian support to navigate the challenging business landscape.