As the deadline approaches for Canada to finalize a trade agreement with the United States, many Canadian businesses are feeling anxious, anticipating a significant impact on their sales if the new tariffs are implemented. The impending U.S. tariffs, scheduled to come into effect on Wednesday, would add to the existing trade sanctions and affect approximately $28 billion worth of Canadian goods, including electronics, dairy products, alcohol, and timber.

Negotiations are reaching a critical stage, with Canadian officials likely to meet with U.S. Trade Representative Jamieson Greer before discussions between Prime Minister Mark Carney and President Donald Trump. The final decision on any deal rests with President Trump, according to sources familiar with the talks.

Some Canadian businesses fear that the proposed tariffs could not only increase prices for American customers but also render cross-border shipping economically unfeasible. Todd Stafford, the president of Northern Cables based in Brockville, Ontario, expressed concerns about potentially losing half of the company’s sales revenue, as it heavily relies on U.S. buyers.

If the new tariffs are enforced, Stafford indicated that the company might have to cease all cross-border shipments, jeopardizing its operations and possibly leading to layoffs. The impact of the tariffs could compound existing challenges faced by the company, such as slowing condo construction and competition from cheaper Chinese products.

Exclusion of CUSMA Protection

Since the start of his second term in January 2025, U.S. President Donald Trump has targeted key sectors of Canada’s economy, including auto parts, lumber, steel, and aluminum. Despite the protection offered by the Canada-U.S.-Mexico Agreement (CUSMA), the new tariffs set to be imposed would affect approximately five percent of Canada’s overall trade with the U.S. The list of affected Canadian exports is extensive, encompassing items like hockey equipment, select flowers, and antiques.

While certain sectors like energy, potash, and critical minerals will remain exempt from the tariffs, many businesses are apprehensive about the potential revenue losses. The Canadian Federation of Independent Business (CFIB) highlighted the significant impact of losing half of the revenue for businesses and the shield that CUSMA has provided in the past.

Small business owners like Cindy Baldassi, who operates a jewelry business in Calgary, are already feeling the effects of the tariff threat. Baldassi expressed concerns about potentially losing half of her business due to the new tariffs, leading her to halt U.S. shipments and adjust prices to mitigate the impact.

As businesses brace for the repercussions of the tariffs, some have already experienced adverse effects. Randy Williams from Monterey Textiles mentioned the layoffs and reduced orders his company faced following the tariff threats, emphasizing the significant impact even before the tariffs are enforced.

In Alberta, beekeeper Lorne Prins is among those preparing for the proposed tariffs, acknowledging the potential surplus of honey and its impact on local prices. He hopes that Canadians will support local businesses amidst the tariff challenges by embracing the Buy Canadian movement once again.