Canadian business leaders brace for lost deals after trade talks crumble, 50% U.S. tariffs take effect

Canadian businesses and industry groups are bracing for the full impact of new U.S. tariffs after trade talks collapsed. Prime Minister Mark Carney ordered his negotiating team back to Ottawa on Friday night, saying U.S. requests were “unreasonable,” leaving negotiators off the table. The threatened 50% tariffs then took effect early Saturday, covering Canadian goods including wood furniture, cement, plywood, and wine. Lightning Rock Winery in British Columbia shipped a $20,000 order to Washington state before the deadline, but expects it to be the last shipment south for now. aVenco president Kathleen Chapman, whose company sells parchment baking paper across North America, said 30% to 40% of sales go to the U.S. and uncertainty is delaying contracts. Oxford Economics estimates manufacturers—especially plastic, chemicals, cement, and concrete—would feel the worst effects, with additional pressure on sectors already hit by steel, aluminum, lumber, and auto tariffs. The business impact may be uneven across provinces.