Trump's tariff threat already costing Canadian manufacturers major orders

Canadian manufacturers are already losing major U.S. orders as businesses brace for President Donald Trump's latest tariff threats, even as the Gordie Howe International Bridge prepares to open Monday.

William Pellerin, an international trade lawyer, said some Canadian companies report feeling the effects of Trump's proposed 50 percent tariff before it takes effect August 19. "We're already speaking with a large number of clients who, because of this tariff threat of 50 percent that would come into force next month, are already losing massive orders to their U.S. customers," Pellerin said.

Trump threatened the tariffs on certain Canadian goods last Sunday, along with another 10 percent tariff on goods outside the Canada-U.S.-Mexico Agreement. The 50 percent tariff would make many Canadian products too expensive to compete in the U.S., particularly in furniture and electronics sectors.

"A 50 percent tariff really makes those Canadian businesses uncompetitive in the United States," Pellerin said. The uncertainty alone is already affecting employers, with U.S. buyers pulling back over concerns they could soon face significantly higher costs. "We've already seen some layoffs by Canadian manufacturers just because of that threat," he added.

Furniture and wood products could be among the hardest-hit sectors. Many furniture manufacturers—often employing two or three hundred people in small rural towns—depend heavily on U.S. exports. "This is going to shut down Canadian towns altogether," Pellerin said. "We're hearing the word 'catastrophic' from some of our clients."

Ottawa's immediate priority should be returning to the negotiating table before the tariffs take effect, Pellerin said, while also moving ahead with legislation aimed at strengthening Canada's forced-labour rules. The trade uncertainty comes as the Gordie Howe International Bridge, a major commercial crossing between Canada and the U.S., prepares to open Monday.