Calgary businesses brace for tariff impact as trade talks collapse
After 18 months of tariff adaptation, local companies face 50% U.S. duties with little warning—Tool Shed and other firms scramble to adjust supply chains again.
The day's top stories, food & events — every morning at 7. Unsubscribe anytime.
Calgary businesses have spent 18 months navigating tariffs and uncertainty with the U.S., their largest trading partner. Now they're preparing to do it all again after Canada-U.S. trade negotiations collapsed Friday night without a deal.
Graham Sherman, founder of Tool Shed Brewing Company, said he wasn't surprised. After COVID-19 and repeated tariff rounds, uncertainty has become part of doing business. "I almost can't allow myself to get too stressed about it because who knows what's going to happen next," he said. "I just got to find a way to keep my business afloat."
Tool Shed already adjusted its supply chain in 2025 when tariffs made U.S. aluminum cans unaffordable. The company switched to a Chinese supplier, requiring larger advance orders but ultimately cheaper in the long run. Had they stayed with the American supplier, they'd now face double tariffs on Canadian aluminum.
At CindyLouWho2, a Calgary online jewelry store, owner Cindy Baldassi paused orders Thursday night ahead of the deadline. She's now waiting to learn new shipping costs to see how much she'll need to raise prices. She had largely recovered from the first tariff round after certifying most products under CUSMA, which gave duty-free exemptions on North American goods. Her American sales bounced back, though she'd already reduced U.S. dependence from 90 per cent of business to 75 per cent.
Now, most of her products no longer qualify for CUSMA under Trump's 50 per cent Section 338 tariffs, which bypass those exemptions. "This is going to be pretty bad," Baldassi said. "Adding 50 per cent to the majority of items I sell is going to kill those sales to the United States."
She's considering switching shipping carriers but won't abandon American customers. "I definitely intend to sell to the States, but I need to figure out how I will be shipping and then update prices," she said.
Prime Minister Mark Carney announced Saturday that retaliatory tariffs will come into effect after Labour Day. The federal government says a support package is coming for affected businesses, though details remain unclear.
Will Tool Shed and CindyLouWho2 qualify for federal support, and how much will it cover?
What details will Alberta announce about its own business support program?
We'll update this story as answers emerge.
The facts
When did Canada-U.S. trade negotiations collapse?
Canada-U.S. trade negotiations collapsed on Friday night, August 21, 2026, without reaching a deal.
What tariff rate is now being imposed on goods?
Trump's Section 338 tariffs impose a 50 per cent duty on most products, bypassing previous duty-free exemptions under CUSMA.
How long have Calgary businesses been dealing with tariff uncertainty?
Calgary businesses have spent 18 months navigating tariffs and uncertainty with the U.S., their largest trading partner.
What did Tool Shed Brewing Company do to cope with earlier tariffs?
Tool Shed Brewing Company switched from a U.S. aluminum can supplier to a Chinese supplier in 2025 when tariffs made American cans unaffordable, though the switch required larger advance orders.
