Canadian Businesses Grapple with “Tariff Whiplash” as Trump’s Trade Policies Remain Unclear

By Avatar of Blog April 10, 2025
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Canadian Businesses Grapple with “Tariff Whiplash” as Trump’s Trade Policies Remain Unclear

 Canadian businesses are expressing a sense of “whiplash” as they navigate the ever-shifting landscape of US trade policies under the Trump administration. While President Trump announced a 90-day pause on some of his recently imposed “reciprocal tariffs” on numerous countries, the duties on Canadian imports, including those related to fentanyl, automobiles, steel, and aluminum, remain unchanged. This inconsistency is creating significant uncertainty and forcing Canadian companies to scramble and prepare for potential future levies.   

The initial announcement of sweeping tariffs, including a substantial 104% duty on Chinese goods, had sent shockwaves through global markets, including Canada. Many Canadian businesses with intricate supply chains involving the US and China faced the prospect of significantly increased costs and logistical nightmares. In response to the uncertainty, some shippers were compelled to halt shipments, while others rushed to move cargo across the border ahead of potential tariff deadlines.  

While the subsequent 90-day pause on tariffs for most nations has been described by Canadian Prime Minister Mark Carney as a “welcome reprieve” for the global economy, the continued imposition of duties on Canada is a cause for concern. The BC Chamber of Commerce CEO, Fiona Famulak, drew parallels to the COVID-19 crisis, arguing that the tariff situation is potentially more challenging due to the constant uncertainty. Businesses require stability to plan and invest, and the unpredictable nature of US trade policy is hindering their ability to do so.   

Some Canadian businesses are taking proactive measures to mitigate potential risks. For instance, A Cappella Catering Co. in Edmonton has created a detailed spreadsheet to track the costs of their most common ingredients, preparing for the possibility of implementing a “tariff surcharge” for customers to stay afloat. The fluctuating tariff threats are reminiscent of the inflated food costs experienced during the pandemic, which nearly jeopardized the company’s 35-year history.  

Adding another layer of complexity, the ongoing trade tensions are even impacting cultural traditions. Due to US tariffs on certain Canadian goods, some provinces are restricting the sale of American alcoholic beverages, leading to a shortage of Manischewitz wine, a staple at Passover Seders for many Jewish families in Canada. This absence is being seen by some as a symbol of the broader strain in the relationship between the two countries.   

Despite the challenges, there are some glimmers of potential opportunity for Canada. The Canadian Medical Association (CMA) is urging the federal government to act swiftly to attract American medical and scientific professionals who may feel undervalued in the US due to mass layoffs and the elimination of health programs and research positions. There has been a significant increase in registrations from US medical graduates exploring practice opportunities in Canada, and the CMA is calling for streamlined immigration processes to capitalize on this potential “brain gain.”

Overall, Canadian businesses are navigating a period of significant uncertainty and adapting as best they can to the fluid trade policies emanating from the United States. The continued tariffs on key Canadian sectors, coupled with the potential for further policy shifts, necessitate vigilance and proactive planning for companies across the country.

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April 10, 2025 12:37 pm

15 total views, 0 today