With the deadline looming for Canada to finalize a trade agreement with the United States, numerous Canadian businesses are anxious, anticipating a potential significant drop in sales if the new tariffs are imposed. The impending U.S. tariffs, scheduled to come into effect on Wednesday unless a last-minute deal is reached, would impact a wide range of Canadian products, including electronics, dairy, alcohol, wood, and more, totaling $28 billion worth of goods.
Negotiations are intensifying as Canadian officials aim to meet with U.S. Trade Representative Jamieson Greer before discussions between Prime Minister Mark Carney and President Donald Trump ahead of the tariff deadline. The final decision on any deal rests with President Trump. Some Canadian businesses fear that the proposed tariffs would not only increase prices for American customers but also render cross-border shipping economically unfeasible.
For instance, Todd Stafford, the president of Northern Cables based in Brockville, Ontario, relies on U.S. buyers for half of the company’s sales. The company, known for manufacturing copper and aluminum power cables for commercial and industrial use, operates seven warehouses in the U.S. Stafford expressed concerns that a 50% tariff would result in an immediate loss of all U.S. business.
The impact of the tariffs is anticipated to affect various Canadian sectors, including hockey equipment, flowers, and antiques, which were previously shielded under the Canada-U.S.-Mexico Agreement (CUSMA). Despite exemptions for energy, potash, and critical minerals, the new tariffs could disrupt about 5% of Canada’s overall trade with the U.S.
Business owners, like Cindy Baldassi of CindyLouWho2, a Calgary-based handmade jewelry company, fear losing a substantial portion of their business. Baldassi has temporarily ceased U.S. shipping on her platforms and is forced to increase prices on her items due to the impending tariffs. The uncertainty surrounding the tariffs has prompted businesses to explore alternative markets beyond the U.S.
Even before the tariffs are implemented, their threat has impacted businesses. Randy Williams, from Monterey Textiles, noted the ripple effect on the textile industry, with some companies already experiencing layoffs and decreased orders. The looming tariffs have compelled businesses to adapt, with some beekeepers in Alberta rushing to ship honey to the U.S. to avoid potential losses.
As the tariff deadline approaches, Canadian businesses are bracing for the economic repercussions, hoping for a resolution to avoid significant disruptions in cross-border trade.