'Half my business will be gone' - firms in Canada and US fear trade war
Source: BBC Business ↗ (cross-verified by 2 outlets — full list below)
Cindy Baldassi, the owner of Calgary‑based stone‑and‑glass jewellery maker CindyLouWho2, faces the prospect that half of her business could disappear after the United States and Canada abandoned trade talks and each pledged to impose 50 percent tariffs on the other’s goods. Roughly three‑quarters of Baldassi’s sales are to American customers, and most of her products now fall under President Donald Trump’s new tariffs on Canadian exports, forcing her to consider raising prices by half just to stay viable. The tariffs, which took effect on Saturday, target Canadian wine, dairy, cement, clothing and hockey equipment, while Canada’s Prime Minister Mark Carney has announced reciprocal levies on U.S. steel, dairy, appliances and electronics beginning 8 September.
The broader impact of the tit‑for‑tat duties threatens a wide swath of small and medium‑sized enterprises that rely heavily on cross‑border trade. Lind Furniture in Ontario, which has supplied leather furniture to major retailers for nearly six decades, saw sales slump after Trump’s 2025 election and the looming tariffs, as buyers delayed purchases. Outclass, a Toronto menswear brand, now confronts a potential 50 percent surcharge on shipments already scheduled for September, jeopardising orders that were booked months earlier. Similarly, Portland’s Paloma Clothing, which sells Montreal‑produced pillow gifts, would see the retail price of its best‑selling item jump from $59 to as much as $90, a rise that could deter price‑sensitive shoppers. Across the border, California wine producer Bill Easton has been unable to ship his product to Canada for a year and a half, incurring $2,400 monthly storage costs while awaiting a resolution.
Both governments have signalled that the new duties will be matched “dollar‑for‑dollar,” but details of Canada’s countermeasures remain pending, leaving businesses to navigate an uncertain landscape with little notice. Industry observers warn that while larger firms may absorb or shift the extra costs, smaller operators like Baldassi, Sgaramella and the owners of Paloma Clothing risk being “smashed” or forced to maintain prices and absorb losses. With 70 percent of Canada’s exports destined for the United States, the escalation could reverberate throughout the North American supply chain, prompting a wave of closures, inventory backlogs and a reevaluation of cross‑border sourcing strategies as firms scramble to mitigate the sudden financial shock.
⚡ Effects Interpreter
🌍World Economylow impact
What this means for you
- ▶Global growth estimates are the kind of thing that shifts a bit with this kind of news.
- ▶Central banks abroad might recalibrate their own outlook off the back of this.
🏙️Local Economymedium impact
What this means for you
- ▶Wages and hiring nearby can bend with the wider economy.
- ▶Your council tax and utility bills can indirectly track big economic swings.
🏦Rates & Bankslow impact
What this means for you
- ▶Mortgage offers may firm up or soften as the picture becomes clearer.
- ▶The cost of borrowing tends to shift gradually rather than in one leap.
❤️Healthmedium impact
What this means for you
- ▶News like this can nibble at everyday calm more than people expect.
- ▶Some people feel this news more keenly than others, and that's worth acknowledging.
💷Wealthmedium impact
What this means for you
- ▶Markets have a habit of overreacting first and settling down later.
- ▶A brief dip in value is not the same as a permanent loss.
🏠Housinglow impact
What this means for you
- ▶Mortgage deals might edge around if lenders read the wider mood.
- ▶House prices and rents are unlikely to shift the moment this news breaks.
🌍 Effects for your country
The U.S.'s central bank rate currently stands at 3.75%, so a global rates move like this could feed through to local borrowing costs. The U.S.'s economy is growing at 2.3% with inflation at 3.2%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track the U.S.'s own central bank rate closely. With the U.S.'s unemployment at 4.4%, personal-finance effects like this land on a labour market that is currently fairly stable. Health-system effects are harder to localise from economic indicators alone — the real impact in the U.S. depends more on local healthcare capacity than the figures above.
The UK's central bank rate currently stands at 3.75%, so a global rates move like this could feed through to local borrowing costs. The UK's economy is growing at 0.8% with inflation at 3.2%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track the UK's own central bank rate closely. With the UK's unemployment at 5.6%, personal-finance effects like this land on a labour market that is currently fairly stable. Health-system effects are harder to localise from economic indicators alone — the real impact in the UK depends more on local healthcare capacity than the figures above.
France's central bank rate currently stands at 2%, so a global rates move like this could feed through to local borrowing costs. France's economy is growing at 0.9% with inflation at 1.8%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track France's own central bank rate closely. With France's unemployment at 7.9%, personal-finance effects like this land on a labour market that is already under strain. Health-system effects are harder to localise from economic indicators alone — the real impact in France depends more on local healthcare capacity than the figures above.
Romania's central bank rate currently stands at 6.5%, so a global rates move like this could feed through to local borrowing costs. Romania's economy is growing at 0.7% with inflation at 7.8%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track Romania's own central bank rate closely. With Romania's unemployment at 6%, personal-finance effects like this land on a labour market that is currently fairly stable. Health-system effects are harder to localise from economic indicators alone — the real impact in Romania depends more on local healthcare capacity than the figures above.
The UAE's central bank rate currently stands at 3.65%, so a global rates move like this could feed through to local borrowing costs. The UAE's economy is growing at 3.1% with inflation at 2.5%, the backdrop this story's effects play out against locally. Housing-market effects like this are usually felt most where mortgage rates track the UAE's own central bank rate closely. Health-system effects are harder to localise from economic indicators alone — the real impact in the UAE depends more on local healthcare capacity than the figures above.