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 and new U.S. tariffs have dealt a significant blow to a small Coquitlam, B.C., stationery company called Hemlock & Oak. The company had already planned to absorb the costs of U.S. pre-orders for their 2027 planners, totalling $100,000. Tia Masic from Hemlock & Oak expressed the uncertainty they now face, saying, "It's going to get a little rocky."

The trade talks between Canada and the U.S. ultimately broke down late Friday, with both parties placing blame on each other. U.S. tariffs now impose a 50% duty on $28 billion worth of Canadian exports, affecting items such as building products, dairy, alcohol, and honey. Trade expert Ryan Mitton from the Canadian Federation of Independent Business warned that this represents a "nightmare scenario for many small businesses," as the list of affected items spans 18 pages and forms the backbone of many small businesses' operations.

Even existing tariffs on steel, aluminum, automotive, and softwood lumber remain in place. B.C.'s Minister of Transportation, Mike Farnworth, stated that the federal government's decision to abandon the negotiations is being supported. Prime Minister Justin Trudeau plans to introduce counter tariffs beginning next month, potentially more targeted than a dollar-for-dollar response. Donald Trump, the U.S. President, is now threatening additional tariffs starting January 1, 2027.

B.C. Premier David Eby discussed the situation on CNN, expressing surprise at the American policy and emphasizing the negative impact it will have on Canada. Eby remarked, "It’s a bizarre policy for Americans; it’s going to hurt them. Unfortunately, Canada has to hit back." Despite the challenges, Hemlock & Oak plans to diversify their customer base and continue searching for ways to keep their business afloat.