Canadian Businesses Navigate Shifting Trade Waters
Canadian businesses are facing significant challenges due to the constant changes in U.S. tariffs, making future planning nearly impossible.
Impact on Businesses
Wes Love, who runs Taurus Craco in the Toronto area, highlights the struggles of importing machinery and sending it to the U.S. under Trump's tariffs.
"It's like dealing with the mob."
Just this year, a shipment that crossed the border a few minutes after a deadline cost his business nearly C$35,000. Despite Trump pausing the tariff soon after, the damage was already done.
Trade War and Economic Impact
The uncertainty isn't just affecting Love's company. Canada and the U.S. are locked in a trade war, with tariffs on metals and auto parts causing major disruptions.
- Prime Minister Mark Carney has called the tariffs "unjust" and has been working on a new trade deal to stabilize the situation.
- Talks hit a snag when Trump abruptly ended discussions over Canada's digital services tax.
- Carney has threatened retaliatory tariffs if the talks don't go anywhere, leaving businesses in limbo.
The constant back-and-forth has taken a toll on Canada's economy, which relies heavily on trade with the U.S.
Economic Slowdown
- First quarter of 2025: Growth slowed to just 0.8%.
- April 2025: The economy shrank by 0.1%.
The manufacturing sector has been hit the hardest, but the service sector isn't faring much better.
Businesses Left in Limbo
Sam Gupta, CEO of ElevatIQ, a tech consultancy, reports a 50% drop in inquiries.
"We are not even in the conversation."
Service exporters have been left out of the relief measures.
Call for Stability
For businesses like Taurus Craco and ElevatIQ, the key to survival is stability.
"Give us a set of rules and leave them alone."
Until a deal is reached, Canadian businesses will continue to navigate these turbulent trade waters, hoping for a stable future.
