Canada-U.S. trade collapse triggers business warnings across the country

The collapse of trade talks between Canada and the United States and the imposition of 50 per cent tariffs on $28 billion worth of Canadian goods triggered swift warnings from the nation's business community Saturday.

Candace Laing, Canadian Chamber of Commerce president and CEO, called the breakdown a "body blow to North American competitiveness in this self-defeating trade saga." She noted that Americans will see their costs rise while Canadians will lose customers, investment and small businesses.

"A whopping, non-absorbable tariff is not sustainable or viable for business," Laing said. "For a small Canadian exporter operating on tight margins, this isn't an abstract trade dispute. It means looking at your orders, your payroll and your employees and asking what you can still afford."

Dan Kelly, Canadian Federation of Independent Business president and CEO, said the new American tariff is "deeply troubling." A full 40 per cent of small exporters sell items now on the tariff list. "Many CFIB members have said this will end their U.S. sales and some have reported this will kill their businesses," Kelly said.

Union leader Lana Payne said Canadian negotiators made "the right decision by walking away." She called on the country to stand together. "Trump's never-ending list of concessions, threats and economic extortion are designed to break us and own us," she said.

Bea Bruske, president of the Canadian Labour Congress, agreed that walking away from a bad deal "is the right choice for Canada," though she cautioned: "The road ahead will be tough. But we're all in this together."