Trade Talks Terminated, Canadian Businesses Face Uncertainty
Tariffs and Uncertainty Stifle Canadian Businesses
The abrupt halt of trade discussions between the United States and Canada has plunged businesses into turmoil. The fluctuating tariffs and unpredictable trade policies implemented by the US have left Canadian entrepreneurs struggling to plan for the future, as indecision cripples their operations.
Wes Love, owner of Taurus Craco, a Toronto-area machinery importer, faces this uncertainty daily. The shifting import taxes on Canadian goods by the US have made it difficult to forecast. Love described the situation as a business “killer” in the face of ongoing instability.
“What has been creating indecision in the market is people don’t know which way this is going to go,”
—Wes Love
Taurus Craco was hit with a hefty fine earlier this year due to a timing issue. The impact of this financial burden was significant for a small business. Canada’s economy is particularly vulnerable due to its reliance on trade with the US, where 75% of exports are directed.
Impact on the Economy
The situation extends beyond manufacturing, as service sectors also feel the strain. Sam Gupta, CEO of ElevatIQ, highlights the neglect of the service sector during times of economic uncertainty. Despite comprising a significant portion of Canada’s economy, service exporters face diminished market confidence, the lowest in years.
The Bank of Canada has observed a drop in exports to the US. Exports of steel and aluminum decreased, as did vehicle exports. A recent report from the Canadian Federation of Independent Business showed the economy slowing in the first quarter of 2025, growing only 0.8%. Canada’s economy has decreased by 0.1% in April.
The Future
Despite these challenges, Love maintains a positive outlook. He believes that businesses can successfully overcome these obstacles, provided trade policies remain consistent. He expressed the spirit of entrepreneurs to fight for success. He hopes for a deal to make sure rules are stable and business owners are not left uncertain.
