In the world of commerce, uncertainty is often seen as a formidable foe. This sentiment is echoed by companies across Canada as they grapple with the unpredictable nature of tariffs imposed by the United States. Amid escalating trade wars, business owners like Wes Love of Taurus Craco in the Toronto area are seeking not just answers, but a stable environment to operate in.
Taurus Craco imports machinery and distributes it throughout North America, particularly in the US. However, the turbulent tariff landscape has left Love and many other small business owners in a difficult position. "What has been creating indecision in the market is people don't know which way this is going to go," Love said, voicing frustration that is all too common among his peers. Earlier this year, his company faced a hefty charge of nearly C$35,000 ($25,500) due to a shipment timing glitch that occurred during a critical tariff deadline.
Despite swift policy changes that followed, Love's company faced a grim reality: declining clarity and precedent in trade relations. "It's like dealing with the mob," he added, emphasizing the punitive nature of these tariffs. The escalating tit-for-tat tariff conflicts greatly affect Canadian firms, primarily in manufacturing, as trade relations with the US continue to deteriorate.
Canadian Prime Minister Mark Carney has called the tariffs "unjust," acknowledging the profound effects on the economy. There have been attempts at dialogue to reshape the long-standing trade relationship. However, a crucial meeting set for July 16 is shrouded in uncertainty following President Trump's recent decision to terminate trade discussions regarding Canada's digital services tax.
Gaphel Kongtsa from the Canadian Chamber of Commerce believes many businesses still hold out hope for resolution. The volatile situation, marked by sudden shifts in tariff regulations, has triggered a sluggish economy, with significant sectors such as manufacturing feeling the brunt of the chaos. Data indicates economic growth was limited to 0.8% within the first quarter of 2025 amid this backdrop, contributing to a wavering investment climate for many companies.
Alongside manufacturing, the service sector is increasingly affected, according to Sam Gupta, CEO of ElevatIQ. Services—often overlooked in tariff discussions—account for a vast share of the Canadian economy. Gupta highlighted a concerning trend: inquiries for his consulting services have plummeted by 50%. "We don't exist in these conversations," he lamented, stressing the need for acknowledgment and support for the service industry.
As businesses aim to adjust, many are reconsidering strategies, with Statistics Canada reporting that a considerable percentage of businesses engaged in trade with the US are making urgent adjustments. A significant drop in exports has been recorded, particularly in steel, aluminum, and automotive goods.
Despite the hurdles, entrepreneur Wes Love retains optimism, believing that Canadian businesses possess the resilience needed to adapt. "We're full of piss and vinegar, as they would say," he noted, showcasing the indomitable spirit of Canadian entrepreneurs as they navigate the challenges posed by shifting US trade policies, yearning for a stable regulatory environment to guide their ventures.
