Trade War Escalation Threatens Businesses on Both Sides of the Border
In the aftermath of collapsed trade talks between Canada and the US, businesses on both sides are grappling with uncertainty and mounting worry.
By Global Focus Wire Desk
In the aftermath of collapsed trade talks between Canada and the US, businesses on both sides are grappling with uncertainty and mounting worry. Cindy Baldassi, a stone-and-glass jewellery maker in Calgary, Alberta, who relies heavily on American buyers for her sales, faces potential obliteration of half her business due to new 50% tariffs imposed by US President Donald Trump. Similarly, Canadian Prime Minister Mark Carney has pledged levies starting September 8 on US steel, dairy, appliances, electronics, and other products in retaliation. In the Canadian province of Ontario, Lind Furniture, a six-decade old company selling leather furniture to big store clients like Sears and Costco, is grappling with declining sales since Trump took office. The US tariffs that went into effect after talks broke off on Friday target about $20bn worth of Canadian exports, or 5% of Canada's annual exports to the US. Business owners are now navigating this delicate balance as both sides dig in for what comes next, with some fearing a protracted conflict could be devastating for small businesses. Retailers like Matteo Sgaramella, founder of Toronto-based menswear brand Outclass, may struggle to absorb the additional costs due to tariffs on clothing and other items. Across the border in Portland, Oregon, Mike Roach and Kim Osgood, owners of Paloma Clothing, are preparing for potential price hikes on their best-selling gift item pillows, created by a Montreal-based company. Meanwhile, Bill Easton, owner of Terre Rouge Wines in Plymouth, California, has been unable to ship his wine north to Canada due to a boycott of US alcohol and is currently paying $2,400 a month to store it in the hope that the trade impasse will be resolved.
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