US and Canadian businesses brace for impact as tariff dispute escalates

'Half my business will be gone' - Firms in Canada and US fear trade war

The US has imposed 50% tariffs on roughly $20 billion of Canadian goods, including items ranging from hockey sticks to tongue depressors. Canadian Prime Minister Mark Carney has pledged to respond with matching tariffs "dollar for dollar" following the collapse of trade negotiations.

Trade experts say the escalating dispute could result in job losses, though the largest impact is expected to be political, further straining the relationship between the two traditional allies. Business owners on both sides of the border face significant challenges as integrated North American supply chains and cross-border operations face mounting uncertainty.