Canadian and U.S. firms brace for impact of new 50% tariffs
Businesses on both sides of the border warn that the recently announced 50% tariffs could wipe out a large share of sales, especially for small exporters reliant on cross-border trade.
Small exporters in Canada and the United States are preparing for a sharp decline in sales after both governments announced 50% tariffs on a range of goods. Calgary jeweller Cindy Baldassi, whose company derives about three-quarters of its revenue from American buyers, said the new duties would force her to raise prices by half and could eliminate roughly half of her business.
Canadian Prime Minister Mark Carney confirmed that retaliatory levies on U.S. steel, dairy, appliances and electronics will begin on 8 September, while President Donald Trump’s tariffs on Canadian wine, dairy, cement, clothing and hockey equipment took effect on Saturday.
Ontario furniture maker Lind Furniture’s general manager Michael Saifer warned that the tariffs could “kill” the company, noting that sales already fell when earlier duties were announced. Similarly, Toronto menswear brand Outclass founder Matteo Sgaramella said the added cost could deter U.S. retailers from accepting shipments, threatening the viability of small firms that rely on the market.
In the United States, Portland-based Paloma Clothing expects its best-selling pillow, normally priced at $59, to cost up to $90 after the duties, but the owners hope to keep the original price while awaiting a resolution.
Other businesses, such as California wine producer Bill Easton, continue to face logistical hurdles that prevent shipments to Canada, incurring storage costs without a clear path to recoup them. Border-side retailers like Heather Seevers’ craft shop in Washington have seen a 20% drop in Canadian customers and cite anti-Canadian rhetoric as a factor.
Both governments have pledged “dollar-for-dollar” counter-measures, but details remain pending, leaving many small exporters uncertain about the longer-term outlook.