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Collapse of Canada-U.S. trade talks a ‘nightmare scenario’ for B.C. small businesses
🇨🇦 Canada /Economy & Trade

Collapse of Canada-U.S. trade talks a ‘nightmare scenario’ for B.C. small businesses

From Global News · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources Ongoing story
  • Canada-U.S. trade talks have collapsed, leading to new U.S. tariffs on $28 billion of Canadian exports.
  • British Columbia's small businesses are particularly hard-hit, facing a "nightmare scenario" as tariffs impact core products.
  • Canada plans to implement counter-tariffs next month, and U.S. President Trump is threatening further duties in 2027.

The breakdown of trade talks between Canada and the United States has plunged many small businesses in British Columbia into what is being called a "nightmare scenario." New U.S. tariffs now target approximately $28 billion worth of Canadian exports, affecting a wide range of products from building materials and dairy to alcohol and honey.

We’ve tried to prepare as much as possible over the last month, ever since we found out about this, but it’s basically buckle up.

— Tia Masicdescribing the impact of trade talk collapse on her business.

Tia Masic from Hemlock & Oak, a stationery company in Coquitlam, B.C., described the situation as needing to "buckle up" because "it's going to get a little rocky." The company had already committed to absorbing the costs of U.S. pre-orders for its 2027 planners, a move that amounts to $100,000.

Ryan Mitton of the Canadian Federation of Independent Business stated that the tariffs impact "18 pages of items that are at the heart of what small businesses sell and do." These new duties are in addition to existing sectoral tariffs on steel, aluminum, automotive, and softwood lumber. B.C.'s Minister of Transportation, Mike Farnworth, expressed support for the federal government's decision to walk away from negotiations.

It’s going to get a little rocky.

— Tia Masicdescribing the impact of trade talk collapse on her business.

The trade dispute is expected to escalate. Canada's prime minister intends to introduce counter-tariffs starting next month, which may be more targeted than a simple dollar-for-dollar response. U.S. President Donald Trump has also threatened additional tariffs effective January 1, 2027. B.C. Premier David Eby commented on CNN that the policy is "bizarre" and will ultimately "hurt" Americans, adding that "unfortunately, Canada has to hit back."

This is definitely a nightmare scenario for many small businesses.

— Ryan Mittoncommenting on the new U.S. tariffs.

Hemlock & Oak is now focusing on diversifying its customer base and seeking innovative ways to remain operational amidst the challenging trade environment.

You look at the list of tariffs that are going to impact them; there’s 18 pages of items that are at the heart of what small businesses sell and do.

— Ryan Mittonexplaining the scope of the new U.S. tariffs.
DistantNews Editorial

Originally published by Global News. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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