Ottawa [Canada], September 8 (ANI): Canada’s retaliatory tariffs targeting U.S. merchandise officially took effect shortly after midnight Tuesday, as Prime Minister Mark Carney ramped up economic measures against the nation’s primary trading partner following the breakdown of bilateral negotiations last month, deepening an 18-month trade dispute.
Canadian businesses began operating Tuesday under the federal government’s newly implemented dollar-for-dollar tariffs affecting $28 billion worth of American imports, according to CBC News. While business owners prepare for higher operating costs and logistical complications, economists indicate that everyday consumers are unlikely to experience significant immediate effects.
The new trade measures took effect at 12:01 a.m. Tuesday, imposing tariffs on nearly 700 American products ranging from 15% to 50%. The affected merchandise includes industrial materials such as steel and aluminum, household essentials such as toilet paper and specialized products such as coin-operated arcade machines.
The retaliatory tariffs represent the federal government’s direct response to the 50% duties imposed by U.S. President Donald Trump’s administration on Aug. 22 across hundreds of product categories valued at more than $28 billion, ranging from plywood and cement to wine and hockey sticks, according to CBC News.
Dan Kelly, president of the Canadian Federation of Independent Business (CFIB), an organization representing more than 100,000 small and medium-sized businesses nationwide, expressed concern that the latest escalation is leaving many business owners feeling expendable in the ongoing trade conflict.
“They feel like they’re … cannon fodder in the trade war with the United States. That’s not a good feeling,” Kelly told CBC News.
He further noted, “The previous rounds affected large commodities, and things like cars. This round is focused on my members, small and medium-sized business owners across Canada, who are in really rough shape right now.”
JS Furniture, a Manitoba-based home furnishings and appliance retailer with stores in Winnipeg, Portage la Prairie, Steinbach and Winkler, estimates that American merchandise accounts for 60% of its total sales volume.
Brian Kyca, the company’s general manager, said laminate-style bedroom furniture faces some of the highest tariff burdens.
“What seems to be hit the hardest is going to be laminate-style bedroom suites,” Kyca said in an interview with CBC News.
He added, “It seems the large items such as dressers, and chests, and drawers, are going to be subject to a 50 per cent tariff, and the smaller items, such as the headboards, footboard rails, night stands, and mirrors are going to be subject to 25 per cent.”
Kyca described assessing the financial impact as an ambiguous and complicated challenge, citing unclear guidance from agencies such as the Canada Border Services Agency.
For now, the retailer plans to absorb the additional costs while negotiating alternative arrangements with suppliers shipping U.S.-manufactured inventory into Canada.
“I’ve got people, customers that purchased stuff a month ago that are awaiting delivery, that could be subject now to tariffs. And I don’t want to be the one that’s going to phone our customers and say, ‘Oh, by the way, this is going to cost more,’” Kyca told CBC News.
“We’ll eat those costs, because it’s not the customer’s fault,” he said, while acknowledging that there is a limit to how long the business can maintain stable retail prices.
Colin Mang, an economics professor at McMaster University, said retailers across Canada are navigating a delicate financial balance, noting that historical precedent suggests businesses absorb a significant portion of tariff-related costs rather than passing them entirely on to consumers, according to CBC News.
Addressing the broader economic landscape last week, Bank of Canada Governor Tiff Macklem said during an Ottawa media briefing on Sept. 2 that while the retaliatory duties and U.S. tariffs create additional financial burdens for specific sectors, they remain targeted at a relatively narrow segment of the economy.
Reflecting on the broader impact, CFIB President Kelly said, “I’m feeling quite worried. The burden of counter-tariffs hits disproportionately hard on some, not on others.”
Kyca said the ongoing trade tensions have forced JS Furniture to pause plans to open additional retail locations.
At the same time, the company’s approximately 35 employees are facing financial pressures, particularly sales associates who rely on commissions as consumers become increasingly cautious about spending.
“If people aren’t coming in and buying furniture, they’re not earning any money,” Kyca told CBC News.
“People that do have disposable income are holding on to that money, and the people that are working day-to-day, cheque-to-cheque, are nickel-and-diming things. It’s very frustrating,” he added.
Professor Mang said Canada’s latest tariff framework deliberately targets U.S. products for which readily available domestic alternatives exist, giving Canadian businesses an opportunity to expand their market share at home.
For consumers, however, the practical effects are expected to remain limited.
“For the typical Canadian family, you’re not gonna notice much of a difference because of these new counter-tariffs,” Mang told CBC News, emphasizing that the measures will largely have little impact on everyday household spending. (ANI)
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