‘Half my business will be gone’ – Firms in Canada and US fear trade war
Business owners in Canada and the US are bracing for significant financial damage after trade talks between the two countries collapsed over the weekend, prompting both governments to impose 50% tariffs on each other's goods. US tariffs on Canadian products such as wine, dairy, cement, clothing and hockey equipment took effect on Saturday, while Canadian Prime Minister Mark Carney has pledged matching levies on US steel, dairy, appliances and electronics from 8 September. Small firms on both sides say the impact could be severe, with some warning of losing half their business or being forced to raise prices sharply to survive.
Cindy Baldassi, whose Calgary jewellery business relies on US buyers for 75% of sales, expects to lose at least half her American trade after adding 50% to her prices. The new US tariffs cover about $20bn (£15bn) of Canadian exports — roughly 5% of Canada's annual shipments to the US, though Canada is highly exposed overall since 70% of its exports go south of the border. Other business owners, including Ontario furniture maker Lind Furniture and Toronto menswear brand Outclass, described falling orders and fears that "a lot of people" could go out of business, while US retailers such as Portland's Paloma Clothing also face steep price rises on goods sourced from Canada.
- US-Canada trade talks collapsed, triggering 50% tariffs each way
- Small firms fear losing half their sales or worse
- Canada especially exposed, sending 70% of exports to the US
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Trade talks between Canada and the United States broke down at the weekend, and both countries have responded by putting steep new tariffs, taxes of 50%, on goods crossing the border. The US tariffs on Canadian goods such as wine, dairy, cement, clothing and hockey equipment are already in force, while Canada's matching tariffs on US steel, dairy, appliances and electronics are due to start on 8 September.
The dispute matters because the two economies are deeply intertwined, particularly for Canada, which sends about 70% of its exports to the US. Small and medium-sized businesses on both sides of the border are especially exposed, since many rely heavily on cross-border customers or suppliers and have little room to absorb sudden cost increases.
Canada's prime minister, Mark Carney, has taken the lead in announcing his country's response. Business owners quoted in reports, from a Calgary jewellery maker to furniture and clothing firms in Canada and retailers in the US, say the tariffs could force them to raise prices sharply or lose large portions of their trade, raising broader concerns about job losses and company closures if the standoff continues.