Canadian businesses and industry leaders are preparing for the impact of new 50 per cent tariffs from the U.S., hoping for swift domestic support. Prime Minister Mark Carney recalled his negotiation team to Ottawa after trade discussions collapsed due to what he deemed as “unreasonable” U.S. demands.
With negotiations halted, U.S. President Donald Trump’s threatened 50 per cent tariffs are now in effect, covering various Canadian products such as wood furniture, cement, plywood, and wine. Ron Kubek, the owner of Lightning Rock Winery in B.C., managed to ship a $20,000 order to Washington state before the tariffs took effect.
Kubek expressed that this shipment would be his final one to the U.S. for the time being due to the new tariffs. Kathleen Chapman, president of aVenco, a parchment baking paper manufacturer in Bowmanville, Ontario, anticipates a significant impact on her business since a substantial portion of her products are exported to the U.S.
While the overall economic impact of the $28 billion worth of Canadian exports affected by the tariffs may be modest, certain sectors, especially manufacturers like plastic, chemical, cement, and concrete industries primarily in Quebec and Ontario, are expected to bear the brunt. Dennis Darby, president of Canadian Manufacturers and Exporters (CME), highlighted the challenges faced by manufacturers, exacerbated by the additional tariffs.
University of Calgary economist Trevor Tombe estimates potential job losses of about 87,000 nationwide due to the new duties, particularly impacting industries like agriculture, textiles, electronics, furniture, and plastics manufacturing. Alberta, although exporting a small portion of affected products, could see around 9,000 job losses due to its supporting industries.
Small business owners like Kubek are concerned about the impact of Canada’s retaliatory tariffs on their operations. Kubek emphasized the importance of government support in removing interprovincial trade barriers for alcohol, while hoping for changes that would facilitate broader access to liquor store shelves in other provinces.
Dan Kelly, president of the Canadian Federation of Independent Business (CFIB), stressed the need for effective support programs tailored to small businesses, given the significant blow from the 50 per cent tariffs. Kelly emphasized the urgency for Ottawa to provide substantial assistance promptly to mitigate the short-term consequences on small businesses.
