With the clock ticking for Canada to finalize a trade agreement with the United States, numerous Canadian businesses are feeling apprehensive, anticipating a potential loss of up to half of their sales if the new tariffs are imposed. The impending U.S. tariffs are scheduled to come into effect on Wednesday unless a last-minute deal is reached, impacting a wide range of Canadian products such as electronics, dairy, alcohol, and wood, among others.
Negotiations are reaching a critical juncture, with Canadian officials likely to engage 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, as emphasized by America’s top trade negotiator.
For some Canadian businesses, the proposed tariffs pose a significant threat beyond just raising prices for American customers. They fear that shipping goods across the border would no longer be financially viable. Todd Stafford, the president of Northern Cables based in Brockville, Ontario, expresses concern as half of their sales depend on U.S. buyers. The company specializes in manufacturing copper and aluminum power cables for commercial and industrial applications.
If the new U.S. tariffs are enforced, Stafford foresees a complete halt in border crossings for the company, potentially leading to severe business repercussions. Despite employing 320 individuals in Brockville and avoiding layoffs for over two decades, Stafford worries about the adverse impact of the tariffs on the company’s operations and the broader economic challenges faced domestically.
The Shield of CUSMA (Canada-U.S.-Mexico Agreement) has shielded many sectors of Canada’s economy from the trade war initiated by President Trump in January 2025. However, the upcoming tariffs could alter this protection, affecting approximately five percent of Canada’s overall trade with the U.S. Numerous Canadian exports, including hockey sticks, specific flowers, and antiques, would be impacted by the new tariffs, while energy, potash, and critical minerals are expected to remain exempt.
The uncertainty surrounding the new tariffs has instilled fear among business owners, according to Jasmin Guénette, the vice president of national affairs at the Canadian Federation of Independent Business (CFIB). Cindy Baldassi, the owner of CindyLouWho2, a Calgary-based handmade jewelry company, expresses concerns about potentially losing half of her business due to the tariffs, prompting her to cease U.S. shipping operations on various platforms.
Despite the looming threat of tariffs, some businesses have already experienced adverse effects from the uncertainty. Randy Williams, the director of sales and marketing at Monterey Textiles, highlights the challenges faced by the textile industry, with some manufacturers making difficult decisions in response to the tariff threats.
In Alberta, beekeeper Lorne Prins of Gull Lake Honey discusses the rush among honey producers to ship their products to the U.S. before the tariff deadline. If the tariffs disrupt honey exports, it could lead to a surplus in Canada, impacting local prices and necessitating support for Canadian businesses through initiatives like the Buy Canadian movement.
