Canadian business seeks security in the US Tariff War

A deal or no deal, what Wes love wants is security.

His business in the Toronto area, Taurus Krako, imports machines from abroad and distributes it to North America, mainly to the United States.

But President Donald Trump's shift tariffs on Canadian products have left him, as many independent business owners who have failed to plan the future.

“What creates indecision on the market is that people do not know which way this will go,” G -n LOVE told the BBC in June.

“And in small business, indecision is a killer.”

Taurus Krako was hit strongly by the tariffs earlier this year when he was forced to deploy nearly $ 35,000 ($ 25,500, $ 18,700) as a shipment to the US crossed the border a few minutes after one deadline.

“He is completely criminal. From the point of view of small business, this is more than the cost we spend on hydro and gas for the whole year,” he said.

Though, however Trump stopped this tariff a few hours later, Taurus Krako still had to pay. The refusal would mean that they were no longer allowed to transport its products to the United States, LOVE said.

“It's like dealing with the mafia,” he said.

Canada is in the Tariff War with Tit-Tarif with its largest trading partner, facing a series of taxes, especially metals and auto.

Since taking office in January, Trump has announced a series of taxes on the import of goods from other countries – arguing that they will strengthen US production and protect jobs.

Subsequent uncertainty struck Canada's economy and intense conversations between the two countries affected on Friday.

Prime Minister Mark Carney called Trump's tariffs “unfair” and said that while he was launching an election campaign in April that the “old relationship” with the United States was “ended”.

Shortly after winning these elections, the Prime Minister visited Washington, taking a more primitive message to the White House to start talks about a new trade and security deal.

Since then, it has been a deadline for July 16 to discard this deal, and President Trump said at the recent G7 summit that he was optimistic that the two countries could “work” on trade.

But on Friday, Trump said he was reducing trade conversations on Digital Services tax in Canada.

“We end all discussions about the trade with Canada, in force immediately,” he wrote on social media.

Carney has threatened to impose another round of retaliatory rates on the United States if the conversations are not successful.

LOVE welcomes every prospect of a deal.

“Give us a set of rules and leave them alone and let's work within these rules,” he said.

“It's like a sport, right? Everyone goes to the field and playing a set of rules, but you don't change the rules in the middle of the game.”

Gaphel Kongtsa, director of international policy at the Canadian Chamber of Commerce, said businesses hoped that the agreement would bring stability.

So far, they have to navigate a very liquid landscape, he said, “at first glance, things are increasing or decreasing or adding, without a very clear indication of why.”

Canada relies a lot on trade with the United States, with 75% of its exports focused south, according to Canada statistics.

Its economy slowed significantly in the first quarter of 2025. As a result of the trade war and subsequent uncertainty – it increased only 0.8% between January 1 and March 31, according to the Canadian Federation of Independent Business (CFIB).

It contracted by 0.1% for a month in April.

The timeline of the tariffs shows what vortex it was for several months.

On February 1, Trump imposed a 25% tariff for most Canadian imports, after which he stopped them for a month later. They were re -imposed when this period expired, only to be delayed again.

Not long after, he provided the release of all goods that are in line with the current free trade transaction in North America, known as USMCA.

At that time, in March, the United States imposed a 25% global tariff for imported steel and aluminum, as well as imported vehicles.

This month, Trump raised the metal tariff to 50%.

The production sector was in the spotlight when it comes to tariffs, but the service sector is also influenced by uncertainty, if not directly.

Sam Gupta is the founder and CEO at Elevatiq, a technology and management consulting activity that works from Buffalo, New York and Toronto.

Gupta said that most people do not think about the services sector during a period of uncertainty, calling it a “unloved child” of the economy.

“The attention goes to all manufacturing companies and companies that are directly affected by the supply chain,” he said.

Still services – Which covers everything from finance to tourism – make up a huge part of Canada's economy, representing the vast majority of its workforce.

Service exporters have not been affected as difficult as production, but their perspectives and confidence in the market have been at the most level for years, according to the Canadian Chamber of Commerce.

And while Ottawa applies several measures to provide relief to companies affected by the tariffs – including the funds raised from counterparts – the services sector has not received any compensation.

“We are not even in the conversation,” said G -H Gupta. “We do not exist.”

He said his business is not fighting financially at the moment, but noted that inquiries about his company's services were “reduced by 50%”.

“As for our understanding, there are not many businesses for these long -term investments at the moment. They are just not in thinking,” he said.

“The biggest fear we all have right now is that I don't know how long it will last. If it will be six months, a year, 18 months, we can still survive. But let's say that it lasts as two years, three years, then oh, God, it will be really difficult.”

This is the most difficult period for the industry in his 20-year career as the sector faces a combination of challenges, he said.

Mr Gupta recalled how easy it was for him to get a well-paid job at the beginning of his career.

“Even when I was graduating, we were paid as crazy. And we were so arrogant that we would not even take calls from recruiter,” he said.

“But now with AI, with tariffs, the economy, everything, everyone I know fight,” he said.

Statistics Canada reports that 56% of all businesses that wear up in the United States have taken measures to mitigate tariffs.

More than 30% have delayed large investments and costs, while 25% have sought alternative customers outside the United States.

Canada's bank said on Wednesday that exports to the US dropped by more than 15% in April. Exports of steel and aluminum decreased by 25%and 11%and the export of vehicles has fallen by 25%.

But nevertheless, Mr. Love remains positive.

He said businesses can navigate the challenges as long as the US does not change its trade policy.

“We are entrepreneurs. We are full of peak and vinegar as they would say,” he said.

“And so we do everything that is possible to continue to fight. And I think we will be successful; we just have to know what the basic rules are.”