Businesses fear closure with no Canada-U.S. trade deal as industry reacts

The collapse of trade talks between Canada and the United States, the imposition of 50 per cent tariffs on $28 billion worth of Canadian goods and Prime Minister Mark Carney pledging dollar-for-dollar retaliatory tariffs triggered swift reaction from the nation's business community.

Candace Laing, Canadian Chamber of Commerce president and CEO, called the breakdown a "body blow to North American competitiveness in this self-defeating trade saga."

"A whopping, non-absorbable tariff is not sustainable or viable for business," she said in a statement. "For a small Canadian exporter operating on tight margins, this isn't an abstract trade dispute. It means looking at your orders, your payroll and your employees and asking what you can still afford."

Laing, who is a member of Carney's Canada-U.S. relations advisory committee, added Americans will see their costs go up, while Canadians will see customers, investment and small businesses disappear.

The United States imposed 50 per cent tariffs on a range of Canadian exports Saturday, after the two countries could not reach a new deal before an extended deadline imposed by President Donald Trump earlier in the week.

Prime Minister Mark Carney said he suspended negotiations and directed Canadian negotiators to return to Ottawa. He also announced Canada will retaliate with matching dollar-for-dollar tariffs.

Carney said supports for Canadian businesses and workers will be announced in the coming days.

Unifor president Lana Payne, who is also a member of Carney's advisory committee, said in a text message the Canadian negotiators made "the right decision by walking away."

"We can't trade good jobs for a bad deal. And it was clear the U.S. was continuing to push for untenable concessions," she said.

"Trump's never-ending list of concessions, threats and economic extortion are designed to break us and own us. We need to stand together. We need to fight together."

Dan Kelly, Canadian Federation of Independent Business president and CEO, said on social media that this new American tariff is "deeply troubling for thousands of small Canadian exporters."

"A full 40 per cent of small exporters sell items on the new 10+ page list of items facing 50 per cent tariffs," Kelly said.

"Many CFIB members have said this will end their U.S. sales and some have reported this will kill their businesses."

Bea Bruske, president of the Canadian Labour Congress, said on social media that walking away from a bad deal "is the right choice for Canada."

"The road ahead will be tough. But we’re all in this together. We must use our leverage to force Trump to back down," she said.

"And we must focus on protecting workers and communities impacted by Trump’s trade war."

Chris Swonger, Distilled Spirits Council of the United States president and CEO, said in a statement that continued "discriminatory treatment" of American spirits by most provinces has caused significant harm to the industry. 

"We encourage policymakers on both sides of the border to pursue a negotiated solution that restores market access for U.S. spirits throughout Canada and returns spirits trade to a zero-for-zero tariff framework," he said. 

All provinces except Alberta and Saskatchewan have not been stocking American booze in response to the sectoral tariffs the Trump administration placed on steel, aluminum and autos at the start of his term. 

This report by The Canadian Press was first published Aug. 22, 2026. 

— With files from Catherine Morrison in Ottawa and Kelly Malone in Washington

By David Baxter | Copyright 2026, The Canadian Press. All rights reserved.