‘We can’t run our businesses’: Canadian companies react to U.S. tariffs

Canadian businesses are grappling with the consequences of U.S. tariffs, brought about by the collapse of trade talks between the two countries. President Donald Trump imposed 50 per cent tariffs on billions of dollars worth of Canadian goods on Saturday, following the failure to reach an agreement within the deadline. Prime Minister Mark Carney described the deal as "walking away from a bad deal" and pledged retaliatory dollar-for-dollar tariffs on U.S. goods.

The impact on businesses is already being felt by owners like Ela Onisto, who operates a small-batch candle and fragrance company in Innisfil, Ontario. Onisto has noticed rising costs for some supplies and decreased customer spending, ultimately leading to thinner margins. Canadian businesses are concerned about the potential for a 50 per cent decline in sales, as 40 per cent of small exporters are affected by the tariff list, with one-third expecting a drop in sales.

Matthew Holmes, executive vice president of the Canadian Chamber of Commerce, reported that businesses have been dealing with unpredictable U.S. trade policy for months, with a record 52 changes to the American tariff and tax code in 2025 alone. This uncertainty has caused some businesses to postpone investments, delay hiring, or delay product launches.

Geoff Stewart, founder of Rig Hand Craft Distillery in Alberta, closed a packaging facility in Texas due to tariff concerns, which led to contract losses in Texas, Arizona, and Alaska. Stewart's company has shifted its focus to the Canadian market and other countries, but remains exposed to retaliatory tariffs due to its reliance on U.S. materials.

While Ottawa has promised additional support for affected businesses and workers, Canadian businesses are seeking clarity on the path forward amid ongoing uncertainty.