by .webp)
Toronto, 29 June 2025 – Canadian firms are grappling with uncertainty as fluctuating US tariffs disrupt trade, leaving businesses like Taurus Craco, a Toronto-area machinery importer, struggling to plan ahead. Wes Love, the company’s owner, told the BBC that indecision caused by shifting trade policies is crippling small businesses. Earlier this year, Taurus Craco faced a C$35,000 (£18,700) tariff bill on a shipment to the US, imposed just minutes after a deadline, despite a temporary tariff suspension hours later.
Since January, US President Donald Trump has imposed and adjusted tariffs on Canadian goods, including a 25% levy on most imports, a 50% tariff on metals, and taxes on vehicles. These measures, aimed at boosting American manufacturing, have strained Canada’s economy, which relies on the US for 75% of its exports. Economic growth slowed to 0.8% in Q1 2025, with a 0.1% contraction in April, according to the Canadian Federation of Independent Business. Prime Minister Mark Carney, who called the tariffs “unjust,” has pushed for a new trade deal, with a 16 July deadline looming. However, talks faltered on Friday when Trump announced a halt to negotiations, citing Canada’s digital services tax. Carney has threatened retaliatory tariffs if no agreement is reached. The manufacturing sector, particularly steel, aluminium, and automotive industries, has been hit hard, with exports to the US dropping significantly in April. The service sector, a major part of Canada’s economy, is also feeling the strain. Sam Gupta, CEO of ElevatIQ, a Toronto-based consultancy, reported a 50% drop in inquiries, as businesses hesitate to invest amid uncertainty. Despite the challenges, optimism persists. “We’re entrepreneurs. We’ll keep fighting,” Love said, urging stable trade rules to navigate the crisis. The Canadian Chamber of Commerce echoed this, with policy director Gaphel Kongtsa stressing the need for predictable policies to restore business confidence.
