As the deadline for Canada to secure a trade agreement with the United States draws near, numerous Canadian businesses are feeling anxious. They anticipate a significant drop in sales, with some estimating that up to half of their revenue could vanish if the new tariffs are imposed.
The impending U.S. tariffs, slated to come into effect on Wednesday unless a deal is reached, would add an additional duty to $28 billion worth of Canadian goods, including electronics, dairy products, alcohol, and lumber, among others.
Negotiations are reaching a critical stage, with Canadian officials likely to meet again with U.S. Trade Representative Jamieson Greer before Prime Minister Mark Carney and U.S. President Donald Trump discuss the matter prior to the tariff deadline. The final decision on any deal rests with President Trump, as emphasized by the top U.S. trade negotiator.
While some Canadian businesses foresee a mere increase in prices for American customers due to the proposed tariffs, others fear that cross-border shipping will become economically unfeasible.
Todd Stafford, the president of Northern Cables based in Brockville, Ontario, reveals that approximately half of their sales rely on U.S. buyers. The company specializes in manufacturing copper and aluminum power cables for commercial and industrial purposes.
Sources inform CBC News that Canadian negotiators are concerned that the impending U.S. tariffs may be inevitable as Washington demands an end to provincial bans on U.S. alcohol, a demand provinces are unwilling to meet. Canada’s efforts to secure greater tariff relief, particularly in sectors like lumber, are currently at a standstill.
“We export half of our products to the U.S. and have seven warehouses there,” Stafford shared with CBC News on Monday. “Should the 50 per cent tariffs be implemented, we would lose all that business instantly.”
Expressing hope for a resolution or a potential extension, he added, “We cannot afford to have any trucks cross the border if the new tariffs come into effect on Wednesday.”
Despite having 320 employees in Brockville, the company hasn’t resorted to layoffs in the past 26 years. However, Stafford expresses concerns that the tariffs could exacerbate existing issues at home, such as a slowdown in condo construction and competition from cheaper Chinese products.
“The impact wouldn’t be a direct loss of 50 per cent of jobs, but it would be close,” he stated.