Trade War Triggers Panic for Canadian Small Businesses

Sun Sep 06 2026 06:09:34 GMT+0000 (Coordinated Universal Time)

The new US–Canada tariff war leaves small shops worried about lost sales and higher prices.

When president‑trump tariffs spilled over the border, Canadian jewels, clothing and wine makers felt the pinch. Cindy Baldassi’s stone‑and‑glass shop, a Toronto menswear brand, and a California wine importer have all seen sales shrink or hit delays. Many fear that half their revenue could vanish if tariffs keep rising. The conflict, which looks set to “get worse before it gets better,” has businesses scrambling to protect margins and customers.

Canada’s artisans and American exporters feel the blast of new tariffs.

Cindy Baldassi, who sells amethyst, sea glass and agates from her Calgary shop, estimates 75% of her customers are in the US. With 50% export duties on Canadian goods now in play, she warns she may lose half of her sales and will have to hike prices that could make her products unaffordable to buyers.

In Toronto, designer‑menswear brand Outclass faces delays; orders placed last week for next‑month deliveries are now burdened with extra tariff costs. “Customers won’t pay more for a gift. We’re stuck in a price battle,” said the founder.

The issue spills over the border. In California, wine producer Terre Rouge cannot ship its products to Canadian stores after a 15‑year‑old boycott, paying extra storage fees to keep the wine in touch with potential buyers.

Canadian craft‑shop owner Heather Seevers in Washington notes fewer cross‑border shoppers and a surge in customer hate‑mail. She has launched a fundraiser to survive the added costs.

Both sides say tariffs will mirror each other dollar‑for‑dollar, raising the stakes for exporters and importers alike. The promise of better trade, however, is wrapped in uncertainty — most businesses now say the worst is still ahead.