Canadian businesses and industry leaders are preparing for the impact of new 50 per cent U.S. tariffs, hoping for swift domestic assistance. Prime Minister Mark Carney summoned his negotiation team back to Ottawa following failed trade discussions due to what he deemed as unreasonable demands from the U.S.

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, 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 last to the U.S. for the time being due to the newly imposed tariffs. Kathleen Chapman, president of aVenco, a parchment baking paper manufacturer in Bowmanville, Ont., anticipates a significant impact on her business, with 30 to 40 per cent of her products traditionally shipped to the U.S.

The broad tariff scope encompasses approximately $28 billion in Canadian exports, affecting about five per cent of goods sent to the U.S. Oxford Economics estimates that manufacturers, particularly those producing plastic, chemicals, cement, and concrete, mainly located in Quebec and Ontario, will bear the brunt of the tariffs.

Dennis Darby, president of Canadian Manufacturers and Exporters (CME), voiced concerns that the new tariffs will exacerbate the challenges faced by many members who have already struggled with sector-specific tariffs for over a year. The potential job losses and decreased business activity are alarming for the industry.

University of Calgary economist Trevor Tombe predicts around 87,000 job losses nationwide due to the new tariffs, impacting various sectors including agriculture, textiles, electronics, furniture, and plastics manufacturing. Alberta, although exporting a small portion of the affected products, could still face significant job losses due to its supportive industries.

Ron Kubek expressed worries about the potential impact of Canada’s retaliatory tariffs on his winery, as they could raise input costs. He hopes for government support in eliminating interprovincial trade barriers for alcohol to mitigate the challenges faced by businesses like his.

Dan Kelly, president of the Canadian Federation of Independent Business (CFIB), emphasized the need for effective support programs tailored to small businesses, highlighting past relief programs that were not beneficial to this sector. The looming 50 per cent tariffs pose a severe threat to small business owners, prompting a call for immediate and substantial governmental assistance.