'Half my business will be gone' - Firms in Canada and US fear trade war

What the report says

Business owners in Canada and the United States are reacting to a new escalation in trade tensions after US and Canadian talks collapsed and both governments moved to impose fresh import taxes. The BBC reports that the measures are creating immediate uncertainty for firms that rely on cross-border sales, with small businesses especially worried about absorbing higher costs or passing them on to customers.

In Calgary, jewellery maker Cindy Baldassi said most of her sales come from US buyers and that the new tariffs could sharply reduce demand. In Ontario, furniture maker Lind Furniture said customers had already delayed purchases when tariff threats first emerged, underscoring how quickly trade disputes can affect ordering decisions. The article also cites a Toronto menswear brand whose US retail shipments may arrive with added charges, forcing it to decide whether the business or its customers will bear the extra expense.

The BBC says the latest US tariffs apply to about $20bn of Canadian exports, while Canada plans counter-tariffs starting in September on selected US goods. Because a large share of Canadian exports goes to the US, the stakes are high for manufacturers, retailers and exporters on both sides of the border.

The story also points to spillover effects in the US, including higher prices for Canadian-made goods sold in American shops and weaker cross-border shopping in border towns. More broadly, the reporting suggests the dispute is already disrupting supply chains, pricing and customer relationships, with smaller firms least able to absorb the shock.