Local businesses in Toronto are scrambling to understand the implications of the recent U.S. tariffs on their operations, following the federal government’s announcement of a counter-tariff response. U.S. President Donald Trump has continued to criticize Canada, escalating tensions between the two countries.
The U.S. has imposed 50 percent tariffs on approximately $28 billion worth of Canadian goods after failed trade negotiations. Giles Gherson, CEO of the Toronto Region Board of Trade, expressed concerns about the broad impact these tariffs could have across various industries.
Sue Cadman, president of Miik, a local women’s apparel company, highlighted the significant impact of the new tariffs on their business. She mentioned that the removal of the de minimis exemption last August had already led to a significant decrease in U.S. orders.
Cadman noted that customers are now abandoning their online purchases upon seeing additional duties and tariffs applied at checkout. She emphasized the importance of supporting local businesses and keeping manufacturing within the community.
Jennifer Rezny, owner of Dangerous Ladies, a local costuming company, described the tariffs as detrimental to small businesses like hers. The Section 338 tariffs, authorized under the U.S. Tariff Act, pose significant challenges for businesses that rely on imports.
In response to the U.S. tariffs, Canada has introduced counter-tariffs on various U.S. goods, including seafood, furniture, apparel, and tools. Finance Minister François-Philippe Champagne announced a $7.5 billion tariff support package for affected workers and businesses.
Amid escalating tensions, Trump threatened to rename Lake Ontario to Lake America, sparking further controversy. The Ontario Chamber of Commerce stressed the need for long-term solutions to address the impact of these tariffs on businesses and communities nationwide.