Anxious Canadian firms bet Trump will buckle ahead of 50% tariff deadline
Canadian businesses are choosing watchful waiting as new 50% duties could hit nearly US$20 billion in goods and raise costs for U.S. buyers.
- On Wednesday, Aug. 19, President Donald Trump's 50% tariffs on nearly US$20 billion of Canadian goods take effect under Section 338 of the Tariff Act of 1930, covering products from dairy to motor vehicles.
- Trump's invocation of Section 338 marks a historic first, as the provision applies even to goods compliant with the Canada-United States-Mexico Agreement, eliminating standard exemptions Canadian exporters typically rely on.
- Industry sources report businesses have settled into "watchful waiting," avoiding front-loading shipments. While some cite the "TACO" theory that Trump will reverse plans, Alain Bédard, CEO of TFI International Inc., warned implementation remains likely.
- Higher import costs threaten supply chains and consumer prices as businesses struggle with potential 50% price hikes. WoodSource manager Hank Vedder said "it's the consumer that pays the tariff."
- Although U.S. Trade Representative Greer described Friday's discussions as "constructive," he said Canada must lift retaliatory measures to reach a deal before the Aug. 19 deadline.
23 Articles
23 Articles
While the deadline set by US President Donald Trump for the application of the latest tariffs is coming to an end, companies prefer to take an attentist attitude rather than rush their shipments to the United States to cross the finish line in extremis, according to experts in the sector.
Businesses brace for impact as Trump's 50% tariff on Canada draws closer
On July 20, President Donald Trump imposed 50% tariffs on many Canadian goods, from dairy and alcohol to motor vehicles to building materials like plywood, kitchen cabinets, and cement. They’ll take effect Aug. 19 unless the countries strike a deal before that date.
They have preferred to adopt an attitude of anticipation so far rather than rushing their expeditions to the United States.
Canadian firms wait out Trump ahead of tariff deadline
Canadian businesses are largely resisting the urge to rush products across the border as they face another looming tariff deadline from U.S. President Donald Trump. Instead of scrambling to get shipments into the United States before Aug. 19, many exporters appear to be weighing their options and preparing for the possibility that the latest threat may never fully materialize. New tariffs would affect billions in Canadian exports A new round of …
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