As the countdown begins for Canada to finalize a trade agreement with the United States, numerous Canadian companies are feeling the pressure, anticipating a significant drop in sales if the new tariffs are imposed. The impending U.S. tariffs, scheduled to come into effect on Wednesday, will impact a wide range of Canadian products, such as electronics, dairy, alcohol, and wood, adding an extra duty on goods worth $28 billion.
With negotiations reaching a critical stage, Canadian officials may have another meeting with U.S. Trade Representative Jamieson Greer before Prime Minister Mark Carney and U.S. President Donald Trump discuss the situation before the tariff deadline. It has been emphasized that President Trump will have the final say on any potential deal.
For several Canadian businesses, the proposed tariffs pose a significant threat beyond just raising prices for American consumers. Some fear that shipping goods across the border will become economically unfeasible.
Todd Stafford, the president of Northern Cables based in Brockville, Ontario, relies on U.S. buyers for around half of the company’s sales. Northern Cables specializes in manufacturing copper and aluminum power cables for commercial and industrial purposes.
Expressing concerns over the impact, Stafford mentioned, “We ship 50 per cent of our production to the U.S. We have seven warehouses in the U.S. At the announced level of 50 per cent tariffs, we would lose all of that business immediately.”
As the looming threat of new U.S. tariffs continues, Canadian negotiators are apprehensive about the potential consequences. They face demands from Washington to lift provincial bans on U.S. alcohol, a move that Canadian provinces are reluctant to make, leading to a deadlock in negotiations.
Despite the shield provided by the Canada-U.S.-Mexico Agreement (CUSMA) in exempting most cross-border trade, the new tariffs set to be enforced on Wednesday will affect approximately five per cent of Canada’s overall trade with the U.S. The list of affected Canadian exports includes items like hockey sticks, specific flowers, and antiques, while energy, potash, and critical minerals will remain unaffected.
Business owners across various sectors are expressing deep concerns over the potential impact of the tariffs. Cindy Baldassi, who operates a Calgary-based jewelry business, fears losing half of her clientele due to the new levies. She has already ceased U.S. shipping on her platforms in anticipation of the tariffs.
With uncertainties looming, Canadian businesses are already feeling the repercussions of the tariff threats. Randy Williams, from Monterey Textiles, highlighted the challenges faced by the textile industry and the impact on Canadian businesses, with some already experiencing layoffs and reduced orders.
In Alberta, beekeeper Lorne Prins is among those racing to ship honey to the U.S. before the tariff deadline to avoid potential disruptions in the market. The looming tariffs could lead to surplus honey in Canada, affecting prices and necessitating local support for affected businesses.
