Canadian companies betting Trump will buckle ahead of 50% tariff deadline

Canadian businesses are bracing for a significant economic blow as U.S. President Donald Trump's deadline for imposing steep tariffs approaches. Rather than rushing to export goods before the August 19 deadline, companies are adopting a strategy of "watchful waiting," according to industry insiders.

The new tariffs are set to target nearly US$20 billion worth of Canadian exports, including a wide range of products from dairy to down jackets. Significantly, these duties would apply even to goods that comply with the terms of the Canada-U.S.-Mexico trade agreement, known as CUSMA. This marks a departure from previous tariff actions, which often included exemptions for compliant goods.

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watchful waiting

Janine Harker, head of the Canadian Society of Customs Brokers, noted that business owners are assessing the potential financial impact rather than front-loading shipments. The situation has led to the coining of the acronym TACO, or "Trump Always Chickens Out," reflecting a hope that the president might back down from his tariff promises, as he has done in the past. However, the uncertainty remains high as the deadline ticks closer, with companies preparing for the worst-case scenario.

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Trump Always Chickens Out