Canada is racing against time to secure a trade agreement with the United States before the implementation of new tariffs that could severely impact Canadian businesses. These tariffs, set to go into effect on Wednesday, would add another duty to $28 billion worth of Canadian exports to the U.S., including electronics, dairy, and wood products.
Negotiations are intensifying, with Canadian officials potentially meeting with U.S. Trade Representative Jamieson Greer before discussions between Prime Minister Mark Carney and President Donald Trump. The ultimate decision rests with Trump, who will have the final say on any potential deal.
Many Canadian businesses fear the proposed tariffs could lead to a significant loss of sales to the U.S. Todd Stafford, president of Northern Cables in Brockville, Ontario, expressed concerns about potentially losing half of their business if the tariffs are imposed. The company heavily relies on U.S. buyers for its products.
Despite the shielding effect of the Canada-U.S.-Mexico Agreement (CUSMA) on most cross-border trade, the new tariffs would impact about five percent of Canada’s overall trade with the U.S. Various Canadian exports, such as hockey sticks and certain flowers, would be affected.
The looming threat of tariffs has already had repercussions on businesses, with some reporting layoffs and decreased orders. Randy Williams of Monterey Textiles highlighted the impact on the textile industry, where companies are already feeling the effects of the tariff uncertainty.
As the deadline approaches, Canadian businesses are bracing for potential disruptions to their operations and are exploring strategies to mitigate the impact of the new tariffs.
