Trump’s tariff threat already costing Canadian businesses, trade lawyer says

Canadian manufacturers are already experiencing a significant loss of U.S. orders as businesses brace for President Donald Trump's threatened 50 percent tariff on certain goods. The tariff, slated to take effect on August 19, is already impacting companies, according to William Pellerin, an international trade lawyer.

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We’re already speaking with a large number of clients who, because of this tariff threat of 50 per cent that would come into force next month, are already losing massive orders to their U.S. customers.

"We're already speaking with a large number of clients who, because of this tariff threat of 50 per cent that would come into force next month, are already losing massive orders to their U.S. customers," Pellerin told Global News on Saturday. Trump also threatened an additional 10 percent tariff on goods outside the Canada-U.S.-Mexico Agreement. Pellerin warned that the proposed 50 percent tariff would render many Canadian products too expensive to compete in the U.S., especially in sectors like furniture and electronics.

"A 50 per cent tariff really makes those Canadian businesses uncompetitive in the United States," he stated. The uncertainty alone is causing U.S. buyers to pull back, fearing significantly higher costs. "We’ve already seen some layoffs by Canadian manufacturers just because of that threat," Pellerin added. Furniture and wood product manufacturers, often located in smaller communities and heavily dependent on U.S. exports, could be among the hardest-hit sectors.

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A 50 per cent tariff really makes those Canadian businesses uncompetitive in the United States.

"A lot of these furniture manufacturers are often two or three hundred jobs in a small rural town somewhere," he said. "This is going to shut down Canadian towns altogether. So we’re hearing the word ‘catastrophic’ from some of our clients." These tariff threats are part of an escalating trade dispute between Canada and the U.S., following Canada's retaliation against previous U.S. tariffs. Pellerin urged Ottawa to prioritize returning to the negotiating table before the tariffs are implemented, while also advancing legislation to strengthen Canada's forced-labor rules.

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We’ve already seen some layoffs by Canadian manufacturers just because of that threat.

The trade uncertainty coincides with the opening of the Gordie Howe International Bridge on Monday, a major new commercial crossing between Canada and the United States. The agreement for the bridge stipulates that Canada will share 50 percent of net toll revenues with the U.S. for the first 15 years, with the funds allocated to economic development on the American side of the border.

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A lot of these furniture manufacturers are often two or three hundred jobs in a small rural town somewhere. This is going to shut down Canadian towns altogether. So we’re hearing the word ‘catastrophic’ from some of our clients.