Canadian businesses are calling for stability as shifting US trade policies under President Donald Trump continue to sow confusion and economic disruption across sectors.
Wes Love, CEO of Toronto-based Taurus Craco, which imports machinery for distribution across North America, is one of many entrepreneurs struggling to plan amid the uncertainty. His firm incurred a C$35,000 penalty earlier this year due to a shipment crossing into the US moments after a new tariff deadline. Even though the tariff was lifted shortly afterward, his company was forced to pay.
“It’s like dealing with the mob,” Love said. “In small businesses, indecision is killer.”
The Trump administration has imposed and repeatedly revised tariffs on Canadian imports including steel, aluminium, and vehicles. While intended to protect American manufacturing, the unpredictable measures have hit Canada hard, pushing many firms to delay investments, reroute exports, or seek new markets.
Statistics Canada reports that more than half of Canadian businesses exporting to the US have taken action to reduce exposure to the tariffs. About 30% have postponed major investments, and 25% are searching for customers beyond the US.
The Canadian economy is feeling the squeeze. GDP growth slowed to 0.8% in Q1 2025 and contracted by 0.1% in April. Manufacturing has taken a visible hit, but the services sector, comprising the majority of Canada’s economy, has also suffered.
Sam Gupta, CEO of tech consultancy ElevatIQ, said inquiries for his firm’s services have dropped by 50%, describing this as the toughest period in his 20-year career.
“Even if you’re not directly affected by tariffs, the uncertainty is stalling growth. Businesses are afraid to invest,” Gupta said.
A temporary reprieve came when Trump offered a 30-day suspension of some tariffs in early 2025, but that was quickly reversed. A planned trade and security deal with Canada appeared promising, until Trump abruptly terminated discussions over Canada’s digital services tax in late June.
Prime Minister Mark Carney, who has called Trump’s tariffs “unjust,” has threatened a new wave of retaliatory levies if talks remain stalled. Canada sends 75% of its exports to the US, making trade relations vital to its economy.
Despite mounting challenges, entrepreneurs like Wes Love remain resilient. “We’re entrepreneurs. We’re full of piss and vinegar,” he said. “We’ll fight through it. We just need to know what the ground rules are.”
