Tariffs Cloud Canada-U.S. Trade Even as CUSMA Stands

Trenton’s loading docks once buzzed with the certainty of steady shipments to the United States, but tariffs have made every crate a gamble. At first glance, the numbers sound reassuring: Prime Minister Mark Carney cites 85 per cent of Canada’s trade with its southern neighbour as “tariff-free.” The reality, though, is stitched together with caveats and complications.

Carney’s claim, though accurate in a technical sense, glosses over a messier truth. While a large share of Canadian goods have the potential to escape tariffs under the Canada-United States-Mexico Agreement (CUSMA), actually qualifying is another matter. The process demands time, documentation, and, often, outside expertise—luxuries that slip through the fingers of many small business owners.

For Steve Mallia, owner of Toronto’s Starfield Optics, the trade war was less a headline than a sudden, personal storm. Orders from the U.S. evaporated overnight, replaced by a cascade of compliance paperwork and mounting anxiety. Mallia and his spouse run their telescope accessories company alongside a part-time bookkeeper and an accountant, but navigating the CUSMA maze without a legal team felt Sisyphean. “The little guy is being forgotten,” Mallia reflected, his concerns echoing across shop floors and freight offices nationwide.

The path to tariff exemptions is paved with pitfalls. A product must meet strict rules of origin, and even minor missteps—say, a clerical error on a form—can trigger costly delays or outright penalties. Many exporters now face a grim arithmetic: absorb the new tariffs, hike prices, or risk venturing into unfamiliar overseas markets. The choice is as much about survival as strategy.

Tyler Meredith, former adviser and policy expert, calls out the deeper risk. Canada’s economy leans hard on U.S. trade. When tariffs hit, the pain lands with disproportionate force here. The ripple effects of shifting trade policies extend beyond spreadsheets, threatening livelihoods and local identity. Amid shifting policies and political volleys, one fact stands: adaptation is not an option, but a necessity. Small businesses, often the first to feel the squeeze, are left scanning the horizon for clarity that rarely arrives.

References:
Carney says Canada’s trade with U.S. is mostly tariff-free. But that’s not the whole story

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