New U.S. tariffs recently imposed are expected to have a significant impact on small and medium-sized businesses in the London area, according to an economic expert. Unlike previous tariffs that targeted broader sectors such as auto and steel, the latest 50 per cent levies affect a variety of Canadian products, including alcohol, honey, hockey sticks, and jewelry.
Mahmood Nanji, a policy fellow at Ivey Business School, expressed concerns that these tariffs will exacerbate London’s already struggling economy, potentially leading to more layoffs and hindering business expansion. The region heavily reliant on manufacturing is likely to face further challenges due to the tariffs.
Prime Minister Mark Carney suspended trade talks with the U.S., citing last-minute measures that could restrict Canada’s trade opportunities. The newly imposed tariffs affect approximately $28 billion Cdn ($20 billion US) worth of Canadian goods, with Carney vowing to implement reciprocal tariffs by Sept. 8.
President Trump has retaliated by threatening additional tariffs on vehicles, auto parts, and steel from Canada, as well as on Canadian energy exports. The ongoing trade tensions have put local businesses in London at risk, with around 700 businesses exporting goods worth $8 billion to the U.S. in 2023.
Graham Henderson, CEO of the London Chamber of Commerce, highlighted the direct impact on local manufacturers, emphasizing that even a small percentage of Canadian exports being affected by the tariffs can pose significant challenges for businesses in London. Melanie Pierce, owner of Seven Sisters Ritual Apothecary, expressed concerns about the impact on her business, which heavily relies on American clientele for online sales.
With trade uncertainties looming, local businesses are exploring strategies to mitigate the effects of the tariffs, including focusing on domestic sales and investing in alternative advertising channels. Despite the challenges ahead, efforts are being made to adapt to the changing trade landscape.