As the clock ticks down for Canada to finalize a trade agreement with the United States, many Canadian businesses are feeling anxious. They fear losing up to half of their sales if the new tariffs are implemented.
Scheduled to come into effect on Wednesday, the latest U.S. tariffs would impact $28 billion worth of Canadian goods, including electronics, dairy products, alcohol, and wood, among others.
Negotiations are intensifying as Canadian officials aim to secure a deal before the deadline. There is a possibility of a meeting between Canadian representatives and U.S. Trade Representative Jamieson Greer, with Prime Minister Mark Carney and President Donald Trump also expected to discuss the situation. The ultimate decision rests with President Trump.
Some Canadian businesses are concerned that the proposed tariffs could make cross-border trade unfeasible, not just raising prices but also disrupting shipments.
For Todd Stafford, president of Northern Cables in Brockville, Ontario, where half of the sales rely on U.S. customers, the impact could be devastating. The company specializes in manufacturing power cables using copper and aluminum for commercial and industrial purposes.
Stafford expressed concerns that if the tariffs are enforced, they would have to halt all shipments to the U.S. He remains hopeful for a resolution or an extension.
With 320 employees, Northern Cables has managed to avoid layoffs for over 26 years. Stafford worries that the tariffs could worsen existing challenges, such as the slowdown in condo construction and competition from cheaper Chinese products.
The impact would not be limited to Northern Cables, as the looming tariffs could affect various sectors, including hockey equipment, flowers, and antiques. Energy, potash, and critical minerals are expected to remain exempt.
Jasmin Guénette, vice-president of national affairs at the Canadian Federation of Independent Business (CFIB), emphasized the significant concerns among business owners facing potential revenue losses.
Many business owners, like jewelry seller Cindy Baldassi from Calgary, are already feeling the pressure. Baldassi anticipates losing a substantial portion of her business due to the tariffs.
Despite the challenges, some businesses have adapted to mitigate risks. Randy Williams from Monterey Textiles highlighted the importance of flexibility in production locations to navigate the changing trade landscape.
In Alberta, beekeeper Lorne Prins from Gull Lake Honey is bracing for potential disruptions in the honey market. He is concerned about a surplus of honey impacting prices if U.S. sales are hindered by tariffs.
If the tariffs are implemented, Canadian businesses may need local support to weather the storm.