'Half of my business will be gone' - Firms in Canada and US fear trade war
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'Half my business will be gone' - Firms in Canada and US bracing for trade war fallout
Image source: Cindy Baldassi
Image caption: Most of Cindy Baldassi's US sales will be wiped out, she says
By Ana Faguy
Published 24 minutes ago
Cindy Baldassi relies on American buyers to keep her stone-and-glass jewelry company going. Some 75% of sales from her business, CindyLouWho2, based in Calgary, Alberta, come from Americans.
But after trade talks between the US and Canada collapsed over the weekend, leaders of both countries pledged to slap 50% tariffs on each other's products, business owners on both sides of the border are now bracing for the impact.
With most of her items falling under US President Donald Trump's newly imposed tariffs, Baldassi says she will need to add 50% to the price of most of her products to stay afloat.
"It's quite likely that it will wipe out most of my US sales," Baldassi told the BBC. "I expect that at least half of my business will be gone."
Canadian Prime Minister Mark Carney has pledged levies starting on 8 September on US steel, dairy, appliances and electronics. Trump tariffs went into effect on Saturday, hitting Canadian wine, dairy, cement, clothing, and hockey equipment.
'We may get killed'
In Canada, it's unclear how much more severe the impacts will be, as the country has grown accustomed to the on-again-off-again nature of the trade war.
Lind Furniture, a business based in Ontario that's been operating for nearly 60 years, sells leather furniture to big store clients like Sears and Costco. Sales dropped when Trump took office.
Now, Michael Saifer, general manager of Lind Furniture, is more concerned about Canadians' chances against the US.
"Everyone wants to sell to the Americans—they can buy from whoever they want. I don't know that we're going to win a war with them; we may get killed."
The US tariffs that took effect after talks broke off on Friday apply to approximately $20bn worth of Canadian exports to the US—about 5% of what Canada ships to the US annually. The levies add to existing US tariffs on Canadian steel, aluminium, automobiles, and lumber.
Canada would be particularly vulnerable if import taxes multiply on both sides because 70% of its exports are to the US.
Navigating the next steps as both sides dig in is a delicate balance for some business owners.
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