Canada‑US Trade War Threatens Small Businesses, Says Local Entrepreneurs

Sun Sep 06 2026 06:28:47 GMT+0000 (Coordinated Universal Time)

Canada and US firms face 50% tariffs after trade talks collapsed—small businesses fear losing half their sales.

The sudden 50% tariffs between Canada and the US are predicting a domino effect on local businesses, especially those with deep ties to American customers. Canadian jeweller Cindy Baldassi estimates that 75% of her sales come from the U.S. and expects at least half of her business to disappear. Similarly, Ontario’s Lind Furniture and Toronto‑based menswear brand Outclass foresee price hikes and customer loss. Small‑scale operations such as Paloma Clothing and Northeast Yarns cite their concerns about sudden cost spikes and a potential exodus of cross‑border shoppers. While the U.S. government warns its tariffs will mirror Canada’s, the immediate burden is already felt by ventures dependent on U.S. markets.

Canadian jeweller Cindy Baldassi shared with the BBC that 75% of her sales come from the U.S. Given the overnight 50% tariffs, she expects at least half of those sales to disappear.

Aberrant tariffs that cover a wide range of goods have hit Canadian exports such as wine, dairy and clothing. The U.S. government is reportedly mirroring Canada’s tariffs, mirroring the Canadian Crown’s timeline.

Ontario’s Lind Furniture, which has served big retail brands for nearly 60 years, experienced a sharp dip in orders when the U.S. trade war first surfaced. When tariffs entered the U.S. market, many buyers held orders until the new cost was understood.

Toronto menswear brand Outclass founder Matteo Sgaramella highlighted that U.S. customers will have to pay an extra 50%. Not all products are “meal‑price” bound‑by‑cost, but the market is pressured to decide whether the cost will have the portion of the mismatch.

Similarly, Portland Oregon-based Paloma Clothing will see its best‑selling pillows move from $59 to between $86 and $90 under the new tariff. Small gift items hit a price‑point wall—one‑off, high‑demand items people are unwilling to pay more for. The store has been targeting a release price that keeps the brand afloat.

On the border, Canadian folk have reduced cross‑border customers, and local craft Shopify store Northwest Yarns in Washington is experiencing a 20% drop in shoppers due to the wave of Canadians biting containment. The Canadian side suspects the new tariffs will only cause a temporary shift of buyers while the cross‑border effect continues in the long run.

The changes for Canadian and U.S. companies side‑by‑side illustrate the uncertainty that these tariffs bring, forcing individuals and small businesses to reckon with unforeseen cost spikes, supply‑chain disruptions and marketing strategies whilst the bilateral trade war continues.