'Half my business will be gone' - Firms in Canada and US fear trade war
Business owners in both countries are navigating uncertainty and worry as the tit-for-tat import taxes ratchet up.
Many Canadian and US businesses are bracing for the impact of a looming trade war, with American firms fearing losses as Canadian products face increased tariffs. Cindy Baldassi, owner of CindyLouWho2, a Calgary-based jewellery company, estimates that 75% of her sales come from American customers, and she may need to raise prices by 50% to offset the impact of the new US tariffs.
Canadian Prime Minister Mark Carney has pledged retaliatory levies on US steel, dairy, appliances, and electronics starting September 8th, as Trump's tariffs on Canadian goods take effect. Lind Furniture, a 60-year-old Ontario-based company, has seen sales drop since Trump's presidency, with Michael Saifer, general manager, anticipating further declines due to the tariffs.
The US tariffs affect about 5% of Canada's annual exports to the US, adding to existing tariffs on Canadian products. Business owners like Matt Sgaramella of Outclass, a Toronto menswear brand, are struggling to absorb the additional costs associated with the tariffs. Small businesses are particularly vulnerable, as they lack the resources to adapt to the rapid changes brought by the trade war.
The impacts extend beyond the US-Canada border, with Canadian businesses facing losses due to reduced demand from Canadian customers who are deterred by the anti-Canadian rhetoric from US President Trump.
Written by urgent.news from BBC Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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