U.S. President Donald Trump’s latest tariff threat could affect a broad range of Canadian goods, reigniting fears among small businesses already struggling with economic pressures. The Conservative Party and provincial premiers are pressing Prime Minister Mark Carney to quickly outline his government’s response, while public confidence in his ability to secure a favorable trade deal continues to decline.
According to the The Canadian Press, Dan Kelly, president and CEO of the Canadian Federation of Independent Business (CFIB), said the tariffs could push some small companies to the brink if they take effect.
“This is a pretty broad tariff affecting a lot of businesses, particularly a lot of small and medium-sized firms,” Kelly said. “They don’t have the flexibility to shift their trade to other partners or other parts of the world.”
“For some businesses, a 50 percent tariff basically means you can’t do business. If the U.S. market is critical to you, this is an incredibly frightening development.”
Shuv Majumdar, the Conservative shadow minister for Canada-U.S. relations, said in a letter to Carney that the Conservatives want the House of Commons Standing Committee on International Trade to hold an emergency meeting next week and require Ottawa to submit a written response plan at the hearing.
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Carney must explain his strategy
Majumdar said Carney must explain how the government intends to respond to Trump’s latest tariff threat. During the election campaign, Carney promised he could stand up to the U.S. president, but he has since made concessions to Trump on numerous issues.
In a joint communiqué issued following last Wednesday’s Council of the Federation meeting, Canada’s provincial and territorial premiers said they supported efforts to negotiate a comprehensive agreement covering all tariff-affected sectors. They also urged the federal government to “maintain a clear, timely consultation process with provinces and territories during negotiations.”
Alberta Premier Danielle Smith said Canada had “a window” over the next month “to sharpen the pencil, to sharpen the focus,” adding, “I hope that we can get all of the outstanding issues on the table.”
Ontario Premier Doug Ford said: “Carney needs to lead the way. He needs to come up with a strong plan over the next 29 days, and I’m interested in sitting down with him and hearing what his plan is.”
A new Angus Reid Institute poll found that 62 per cent of Canadians want Ottawa to impose retaliatory tariffs on the United States. Of those surveyed, 34 percent supported tariffs equal in value to those imposed by Washington, while 28 percent favored more limited countermeasures. By contrast, only seven percent believed Canada should make concessions to the United States to avoid additional tariffs.
Half of Canadians lacked confidence in the government’s negotiating position. Among them, 26 percent said Carney’s team was not capable of handling Trump, while 24 per cent said the Trump administration was too unpredictable for reliable negotiations. Only 43 percent of respondents currently believe Carney can secure a favorable agreement, down from 51 percent in April.
The Angus Reid survey was conducted from July 23 to 25 among 1,790 Canadian adults using an online questionnaire.
Trump: ‘I don’t care’
During a July 28 appearance on Fox News’ “Fox & Friends,” Trump was asked by co-host Brian Kilmeade whether he was looking to update the United States-Mexico-Canada Agreement, known as CUSMA.
“I don’t care,” Trump replied. “I mean, I don’t really want to; I’d rather be independent.”
He claimed that his tariff policy had prompted Toyota to invest billions of dollars in U.S. factories to reduce its tariff exposure.
“Mexico and Canada need us. We don’t need them,” Trump added. “The deal is important for them. It’s not important for us.”
This was not the first time Trump had made such remarks. In June, he told reporters that he had no intention of renewing the agreement and said the United States did not need anything from Canada or Mexico. At the time, CTV News political commentator Tom Mulcair interpreted the remarks as a negotiating tactic, describing them as “classic Trump bluster.”
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