Donald Trump has announced a 50 per cent tariff on a broad range of goods that will apply to Canada on 19 August. A survey of small Canadian exporters conducted by the Canadian Federation of Independent Business (CFIB) says two‑fifths of respondents already ship products that will fall under the new duties, and 77 per cent expect a revenue hit.
Survey of small exporters
Among the firms they would be affected, 35 per cent anticipate losing at least half of their annual sales. The CFIB's Dan Kelly warned that many businesses have built their models on the assumption that goods meeting the Canada‑U.S.‑Mexico Trade Agreement (CUSMA) rules would remain duty‑free. The prospect of reduced sales, lower prices or a forced shift to other markets is creating anxiety across the sector.
Negotiations in Washington
Canada's trade team is seeking relief before the deadline. Dominic LeBlanc, Canada's trade minister, and chief trade negotiator Janice Charette met with U.S. Trade Representative Jamieson Greer in Washington on Tuesday. LeBlanc said talks are ongoing and that Canada will continue to defend its interests at the negotiation table.
Meanwhile, a separate poll by financing firm Merchant Growth shows that more than six in ten small businesses rely on the United States for a portion of their revenue, with 13 per cent describing the market as core to their operations. In response, 55 per cent have already cut spending, 25 per cent have delayed hiring and another quarter have raised prices for consumers.
The looming tariffs raise questions about supply‑chain resilience and the strategic importance of the Canada‑U.S. trade relationship. If the duties are imposed, Canadian firms may need to diversify markets, adjust pricing strategies or seek government support to mitigate the impact on employment and regional economies.
Based on reporting by Global News.