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

Canadian companies are grappling with the repercussions of new U.S. tariffs imposed following the failure of trade talks between the two nations. President Donald Trump's 50 per cent tariffs on billions of dollars' worth of Canadian goods came into effect Saturday, leaving businesses uncertain about the impact on costs, sales, jobs, and available support.

Prime Minister Mark Carney called the agreement a "bad deal" and vowed to respond with dollar-for-dollar retaliatory tariffs on U.S. goods. For Ela Onisto, owner of Wick’ed Fragrance House in Innisfil, the tariffs are already affecting her small business that specializes in natural candles, fragrances, and decor. She is paying more for some supplies while customers are spending less, causing her margins to shrink.

Small exporters face a significant challenge, as 40 per cent of them sell products covered by the tariff list, with one-third of those expecting sales to fall by 50 per cent or more. Matthew Holmes, executive vice president and chief of public policy at the Canadian Chamber of Commerce, notes that businesses have already had to contend with unpredictable U.S. trade policy, with over 52 changes to the American tariff and tax code in 2025.

This uncertainty has led some companies to delay investment, hiring, or product launches. Geoff Stewart, founder of Alberta-based Rig Hand Craft Distillery, has already shifted focus to the Canadian market and other countries, closing a Texas packaging facility due to tariff concerns. However, the lack of predictability surrounding the tariffs is proving challenging for Canadian businesses, which rely heavily on exports.

The federal government has promised additional support measures, but companies like Stewart's face a period of uncertainty with no clear path forward.