Canadian businesses are opening Tuesday for the first time under the federal government’s new dollar-for-dollar tariffs on $28 billion worth of U.S. imports. As many owners brace for higher costs and supply-chain issues, experts say consumers may not notice much impact.
The new levies took effect at 12:01 a.m. Tuesday, hitting nearly 700 American products at rates ranging from 15 per cent to 50 per cent. Affected items range from commodities such as steel and aluminum to household goods such as toilet paper and niche products including coin-operated arcade games.
The dollar-for-dollar tariffs are the federal government’s response to the 50-per-cent levies imposed by U.S. President Donald Trump’s administration on Aug. 22 on hundreds of products worth more than $28 billion — from plywood and cement to wine and hockey sticks.
Dan Kelly is president of the Canadian Federation of Independent Business (CFIB), which represents more than 100,000 small and medium-sized firms across the country. He says this latest escalation in the trade war has some of his members feeling like their businesses have been deemed expendable by the government.
“They feel like they’re … cannon fodder in the trade war with the United States. That’s not a good feeling,” Kelly told CBC News.
“The previous rounds affected large commodities, and things like cars. This round is focused on my members, small and medium-sized business owners across Canada, who are in really rough shape right now.”
With Canada preparing to impose its “dollar-for-dollar” retaliatory tariffs on U.S. goods almost two weeks following Donald Trump’s implementation of 50 per cent tariffs, the U.S. president has criticized Canada’s dollar imbalance.
JS Furniture is a Manitoba-based home furnishings and appliance retailer with locations in Winnipeg, Portage la Prairie, Steinbach and Winkler. General manager Brian Kyca estimates American goods account for 60 per cent of the company’s sales by volume.
“What seems to be hit the hardest is going to be laminate-style bedroom suites,” Kyca said in an interview.
“It seems the large items such as dressers, and chests, and drawers, are going to be subject to a 50 per cent tariff, and the smaller items, such as the headboards, footboard rails, night stands, and mirrors are going to be subject to 25 per cent.”
According to Kyca, gauging the impact has been a frustrating and confusing ordeal, with only “vague” information available from agencies such as the Canada Border Services Agency.
For now, he said, JS Furniture plans to absorb the higher costs while trying to work out deals with manufacturers shipping U.S.-made goods into Canada.
“I’ve got people, customers that purchased stuff a month ago that are awaiting delivery, that could be subject now to tariffs. And I don’t want to be the one that’s going to phone our customers and say, ‘Oh, by the way, this is…
Read More: Canada’s new tariffs: Are small businesses ‘cannon fodder’ in the trade
