Toronto businesses call new U.S. tariffs 'killing blow' as 50% levy takes hold
Canadian exporters face steep tariffs on $28 billion in goods. Federal government announces $7.5 billion support package; retaliatory tariffs starting Sept. 8.
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Local Toronto businesses are reeling from new 50 per cent U.S. tariffs on about $28 billion worth of Canadian goods that took effect August 24, with some calling the levies a decisive blow to their operations.
Giles Gherson, president and CEO of the Toronto Region Board of Trade, said the tariffs could impact "every industry you can imagine." He noted that many of the region's companies are analyzing how the new tariffs, layered on top of existing duties, will affect their bottom lines.
Sue Cadman, president of Miik, a Canadian women's apparel company manufacturing in the Greater Toronto Area, said the new levies are "definitely a huge, significant factor" for the business. She pointed out that the initial tariff rounds did less damage than the U.S. ending its century-old de minimis exemption for Canada last August — which had allowed goods under $800 US to enter the U.S. duty-free.
"We are extremely fortunate to have an incredible, loyal Canadian woman base, but we saw at least a 50 per cent decrease in U.S. orders last year," Cadman said. "I can only imagine what this is going to look like this time around." The company has already observed customers abandoning their online shopping carts when duties and tariffs appear at checkout.
Jennifer Rezny, creative director and owner of Dangerous Ladies, a local costuming company selling cosplay materials and supplies, called the tariffs "brutal." "These Section 338 tariffs, for many small businesses, are something like a killing blow," she said Radio's Metro Morning. "It's pretty scary looking at the future and wondering how we're going to make it work. We're doing what we can, but unfortunately if markets are cut off to us, that's kind of the end of the road."
On Tuesday, the federal government announced counter-tariffs on a swath of U.S. goods — hitting around $27.6 billion worth of products including seafood, furniture, apparel and tools — set to take effect September 8. The retaliatory tariffs will use a sliding scale of 15, 25 and 50 per cent, depending on the product. Finance Minister François-Philippe Champagne also announced $7.5 billion in federal tariff support for workers and businesses affected by the new wave of U.S. levies.
What specific eligibility criteria and application process will the $7.5 billion federal support follow?
Which Toronto industries are facing the steepest tariff rates under the U.S. levies?
We'll update this story as answers emerge.
The facts
When did the 50% U.S. tariffs on Canadian goods take effect?
The 50% U.S. tariffs on about $28 billion worth of Canadian goods took effect on August 24, 2026.
How much federal support is Canada providing for tariff-affected businesses?
The federal government announced $7.5 billion in support for workers and businesses affected by the new U.S. tariffs.
When will Canada's retaliatory tariffs on U.S. goods begin?
Canada's counter-tariffs on U.S. goods are set to take effect on September 8, 2026.
What value of U.S. products will face Canadian retaliatory tariffs?
Canada's retaliatory tariffs will hit around $27.6 billion worth of U.S. products including seafood, furniture, apparel and tools.
