Ahead of Quebec election, here's how party leaders want to tackle Canada-U.S. trade war

The collapse of Canada-U.S. trade talks has proven to be a "nightmare scenario" for small businesses in British Columbia, particularly those in the Coquitlam region. Hemlock & Oak, a stationery company, had already committed to absorbing the costs of all U.S. pre-orders of 2027 planners, totaling $100,000. The collapse occurred late Friday, with both sides blaming each other for last-minute changes.

New 50% U.S. tariffs now apply to $28 billion worth of Canadian exports, affecting products ranging from building materials and dairy to alcohol and honey. Existing tariffs on steel, aluminum, automotive, and softwood lumber also remain in place. Ryan Mitton, from the Canadian Federation of Independent Business, highlighted the severity of the situation, stating that there are 18 pages of items impacted, crucial to small businesses' operations.

B.C.'s Minister of Transportation, Mike Farnworth, expressed support for the federal government's decision to exit the negotiations. The trade dispute may intensify, with the U.S. President Donald Trump planning to implement counter tariffs starting next month, potentially more targeted than dollar for dollar. U.S. President Trump has vowed to impose further tariffs starting January 1, 2027.

B.C. Premier David Eby criticized the policy, saying it's bizarre for Americans and will hurt them, while acknowledging Canada must counter the move. Hemlock & Oak's strategy now involves diversifying their customer base and exploring ways to stay afloat amidst the turmoil.