Businesses fear closure with no Canada-U.S. trade deal as industry reacts

OTTAWA — As the collapse of Canada and the United States' trade talks unfolded, businesses across the nation swiftly reacted to the imposition of 50 per cent tariffs on $28 billion worth of Canadian goods. Prime Minister Mark Carney's pledge of dollar-for-dollar retaliatory tariffs further fueled concerns.

Candace Laing, president and CEO of the Canadian Chamber of Commerce, declared the breakdown a "body blow to North American competitiveness." She emphasized that the non-absorbable tariff is untenable for businesses, particularly for small exporters operating on tight margins.

Laing, a member of Carney's Canada-U.S. relations advisory committee, warned that Americans will face higher costs, while Canadians will see customers, investment, and small businesses disappear.

The United States imposed the tariffs on a range of Canadian exports on Saturday, following the failure to reach a new deal before an extended deadline set by President Donald Trump. Prime Minister Carney suspended negotiations and directed Canadian negotiators to return to Ottawa, announcing that Canada will retaliate with matching tariffs.

Unifor president Lana Payne, also a member of Carney's advisory committee, stated that Canadian negotiators made the right decision in walking away from the deal. She criticized the U.S. for its relentless list of concessions, threats, and economic extortion, which aim to break Canadian businesses and workers.

Dan Kelly, president and CEO of the Canadian Federation of Independent Business, expressed deep concern over the new American tariff, noting that 40 per cent of small exporters sell items on the list facing 50 per cent tariffs. Many CFIB members have reported that the tariff will end their U.S. sales and potentially kill their businesses.

Bea Bruske, president of the Canadian Labour Congress, echoed the sentiment that walking away from a bad deal is the right choice for Canada. She acknowledged that the road ahead would be challenging but stressed the need to use leverage to force Trump to back down and focus on protecting workers and communities impacted by the trade war.