Business, Chamber Statement

Yesterday, President Trump gave his tariff speech from the Rose Garden at the White House.  This is the biggest economic disruption since the start of the Great Depression as Trump levies tariffs on the global community. 

GOOD NEWS 

• Canada misses new tariffs. Trump confirmed that Canada and Mexico would not be included in the 10% baseline tariff placed on all other U.S. trading partners in the world.  
• Provinces want to remove barriers. Premiers across Canada are showing new momentum to reduce interprovincial trade barriers, potentially resulting in a $200B boost to Canada’s economy, increased labour mobility, and cutting our productivity gap with the US by a third.  

• Business concerns are driving action. Industry voices, including chambers of commerce, are influencing the national conversation and pushing for coordinated responses.  

BAD NEWS 

• Canada is still exposed to tariffs. With 62% of exports remain subject to the 25% U.S. tariff, especially non-CUSMA compliant goods, increasing costs in export-intensive sectors through heightened supply chain pressures.  

• A new 25% U.S. tariff impacting foreign-made automobiles. These came into effect on April 3, affecting any Canadian auto exports not deemed fully USMCA-compliant. 

• Risk of economic slowdown. Similar to the Smoot-Hawley tariffs during the Great Depression, protectionist policies today could worsen economic instability. 

• Small businesses are vulnerable. Rising costs and trade uncertainty come at a time when many small and medium-sized businesses are already under financial pressure. 

WHAT’S NEXT 

• For our federal candidates, the next steps are clear. With the upcoming election, candidates need to show Canadians a bold vision for how they would make Canada a leader in the future of global trade. Read our full federal action plan here.

• Follow-through is critical. Statements of intent are promising, but lasting change will depend on legislative and regulatory action at the provincial and federal levels.  

• Potential for escalation. Additional tariffs or retaliatory measures, including those on low value shipments under $800, may still be introduced, depending on international developments.