Canadian businesses are calling for clarity and consistency as trade tensions with the United States continue to rattle the country’s economy. The unpredictability of President Donald Trump’s shifting tariff policies has left companies struggling to plan for the future, with small business owners like Wes Love warning that “indecision is killer.”
Love, who runs Taurus Craco, a Toronto-area firm that imports industrial machinery and distributes it across North America, said his company was forced to pay nearly C$35,000 in U.S. tariffs earlier this year. The fees were triggered when a shipment crossed the border minutes after a new deadline — even though the tariffs were paused just hours later. “It’s like dealing with the mob,” Love told reporters. “You don’t pay, you’re out.”
Since early 2025, the U.S. has imposed and repeatedly adjusted a range of tariffs on Canadian goods — most notably steel, aluminium, and vehicles — as part of Trump’s efforts to “protect American jobs.” At times, exemptions were granted for products compliant with the USMCA trade agreement, but sudden reversals have created a climate of instability.
The uncertainty has had a chilling effect on Canada’s economy, which grew just 0.8% in the first quarter and contracted slightly in April. The Canadian Federation of Independent Business reports that more than half of businesses exporting to the U.S. have had to adapt: 30% delayed investments, 25% sought new markets, and many are reconsidering long-term strategies.
The service sector, which makes up the majority of Canada’s economy, has also been hit. Sam Gupta, founder of the cross-border consultancy ElevatIQ, said demand for his services has dropped by 50%. “We’re not even in the conversation,” he said, noting that relief measures have largely ignored service exporters. “Everybody I know is struggling.”
Trade negotiations between Canada and the U.S. hit another impasse on Friday, when President Trump abruptly ended talks over Canada’s proposed digital services tax. “We are hereby terminating ALL discussions on trade with Canada, effective immediately,” Trump posted on social media. Canadian Prime Minister Mark Carney responded by threatening another round of retaliatory tariffs.
Despite the volatility, some business owners remain hopeful. “Give us a set of rules and leave them alone,” Love said. “We can adapt — we just need to know what the rules are.”
With 75% of Canadian exports destined for the U.S., the stakes are high. As the July 16 deadline for new trade negotiations approaches, businesses on both sides of the border are watching closely — and bracing for more uncertainty.
