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Trump's new tariff threats fuel economic uncertainty in Canada

LEILA FADEL, HOST:

President Trump is launching another front in his trade war with Canada. His latest tariffs on Canadian products are scheduled to take effect in about a month. Sheena Rossiter reports from Edmonton.

(SOUNDBITE OF ARCHIVED RECORDING)

PETE HOEKSTRA: To U.S.-Canadian friendship, partnership and success. Thank you.

(APPLAUSE)

SHEENA ROSSITER, BYLINE: It was bottoms up on a Monday morning at the Pacific Northwest Economic Region Annual Summit in Edmonton. Praising the U.S.-Canada relationship, U.S. ambassador to Canada Pete Hoekstra raised the shot of American whiskey, liquor that has been stripped from many Canadian store shelves.

(SOUNDBITE OF ARCHIVED RECORDING)

HOEKSTRA: This relationship is so critical, we need to grow it and we need to stabilize it. And the future will be very, very bright for all of us.

(APPLAUSE)

ROSSITER: The celebration was short-lived. Just hours later, President Trump announced new 50% tariffs on nearly $20 billion worth of Canadian imports. Everything from wine to clothing and even hockey sticks will be subject to tariffs. The White House says the tariffs are intended to hold Canada accountable for what it calls unfair trade practices, though legal challenges are expected.

The announcement comes as Canada, the U.S. and Mexico review the United States-Mexico-Canada agreement. Canadian Prime Minister Mark Carney says those trade talks are now expected to intensify. For Canadian small business owners, the threat of new tariffs is yet another blow, as rising costs and uncertainty continue to squeeze profits.

(SOUNDBITE OF AMBIENT COFFEE SHOP NOISE)

ROSSITER: Nadia Andrade co-owns CH. Cafeteria, a coffee shop and bistro in West Edmonton she's operated since 2020.

NADIA ANDRADE: Well, it has been hard because all the prices have been changing because of the uncertainty, because it changes so much that if we try to make plans to adapt, it will break in a week.

ROSSITER: She hopes small businesses like hers aren't overlooked as Canada and the U.S. continue trade talks.

ANDRADE: For all business owners has been, like, really struggle that we don't get a little bit of extra support. They see it on the big picture - right? - they just see it for the big industries. Business owners, the small ones, we're just, like, OK, we can make it (laughter), I hope.

ROSSITER: For NPR News, I'm Sheena Rossiter in Edmonton. Transcript provided by NPR, Copyright NPR.

NPR transcripts are created on a rush deadline by an NPR contractor. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative record of NPR’s programming is the audio record.

Sheena Rossiter

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