Local businesses in Toronto are facing uncertainty over the recent U.S. tariffs, with the Canadian government responding with counter-tariffs, and President Donald Trump maintaining his aggressive stance towards Canada.
Following the breakdown of trade negotiations, the U.S. imposed 50% tariffs on approximately $28 billion worth of Canadian goods. Giles Gherson, CEO of the Toronto Region Board of Trade, highlighted the widespread impact these tariffs could have across various industries.
Sue Cadman, president of Miik, a local women’s apparel company, expressed concerns over the new tariffs affecting their business significantly. She mentioned that the removal of the de minimis exemption last August led to a notable decrease in U.S. orders for their products.
Cadman noted a decrease in online orders due to added duties and tariffs at checkout, emphasizing the importance of supporting local businesses and preserving jobs within the community.
Jennifer Rezny, owner of Dangerous Ladies, a costuming company specializing in cosplay materials, described the tariffs as devastating for small businesses like hers. The Section 338 tariffs, authorized by the U.S. Tariff Act, are viewed as potentially crippling for businesses that rely on imports.
In response, the Canadian government introduced counter-tariffs on a range of U.S. goods amounting to $27.6 billion, including seafood, furniture, apparel, and tools. These retaliatory measures will be tiered based on product categories, matching the corresponding U.S. rates, and include $7.5 billion in tariff support for affected workers and businesses.
Meanwhile, President Trump escalated tensions with Canada through social media, proposing to rename Lake Ontario to Lake America. This move followed a contentious exchange between Trump and Ontario Premier Doug Ford, highlighting the ongoing trade disputes between the two countries.
Daniel Tisch, CEO of the Ontario Chamber of Commerce, praised Canada’s response to the tariffs, emphasizing the need for long-term economic reforms to address the challenges faced by businesses, workers, and communities nationwide.