From CNBC: 2025-04-18 08:00:00

Small businesses in Canada are feeling the impact of President Trump’s tariffs on Canadian imports. The historically strong trade relationship between the U.S. and Canada is now strained. Trump’s tariffs have led to retaliatory measures from Canada, sparking national pride and resistance among Canadian businesses. Some Canadian businesses have even renamed menu items to show patriotism.

The tariffs have caused emotional distress and cost increases for Canadian businesses. The Canadian Federation of Independent Business represents over 100,000 small businesses, half of which are involved in importing or exporting to the U.S. Many businesses are seeing stronger demand for Canadian products and view the U.S. as an unreliable trading partner. Some businesses are renegotiating contracts due to the tariffs.

The Liquor Control Board of Ontario has stopped purchasing U.S. products, causing American-made products to disappear from shelves. The impact of tariffs is not always clear, as products made in Canada may still be sold. Molson Coors, for example, has production facilities in both Canada and the U.S. Tariffs are a tool of “hard power” and can strain relationships between trading partners.

Former Secretary of State Antony Blinken expressed concern over the impact of tariffs on U.S. soft power. Blinken fears that the U.S. may lose influence on the global stage due to strained relationships with trading partners like Canada. Even if tariffs are reduced, the trading relationship between Canada and the U.S. may be permanently damaged. Business contracts and trust have been eroded.



Read more at CNBC: Canadian small businesses are taking Trump’s tariffs personally