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Businesses on both sides of the Canada-U.S. border are feeling the effects of an ongoing trade dispute, even as the Trump administration signals it is comfortable with the status quo and sees little urgency to reach a new trade agreement.
Business es on both sides of the Canada-U.S. border are feeling the effects of an ongoing trade dispute, even as the Trump administration signals it is comfortable with the status quo and sees little urgency to reach a new trade agreement.
Tariffs Put Canadian Businesses Under Pressure
At Infinity Flooring in Ottawa, tariffs have hit a large portion of the carpet products the family-owned business sells. Heidi Gagne, co-owner and managing director of the store, pointed to a large display of products and said simply: It is all tariffed. Products from major American suppliers are now facing tariffs ranging from 25 to 50 per cent, depending on the materials used, Gagne said.
Some orders have increased by thousands of dollars, while Canadian alternatives are limited and in high demand. We could run into shortages as this progresses, said Gagne. The uncertainty is adding pressure to businesses that rely on cross-border supply chains. We are in a rush, we want to see it resolved, said Gloria Beaucaire, a sales representative who has worked at the store for more than two decades.
We have employees, we have people who depend on people coming into our store. But while Canadian businesses are eager for a resolution, the Trump administration has indicated there is little urgency to reach a new trade agreement. U.S. Trade Representative Jamieson Greer said this week that there is no rush to reach a deal and that U.S. President Donald Trump is comfortable with the current situation.
Canada and U.S. Trade Talks Remain Paused
Kelly Anne Shaw, a former senior White House trade adviser under Trump, said Canada and the U.S. appear to have very different views of the current state of the relationship. The United States and Canada seem to be living in two different alternative realities about what the politics are, what the situation is, Shaw said.
Shaw said the Trump administration believes Prime Minister Mark Carney was the one who walked away from a potential agreement and that Canada would need to make the request to return to the negotiating table. Communication between Canadian and U.S. officials continues, but formal trade negotiations remain paused. The relationship is not in a great place, there are no formal negotiations, said William Pelerin, an international trade lawyer with McMillan LLP in Ottawa.
The pause leaves businesses without a clear timeline for when costs and supply conditions might stabilise. Back at Infinity Flooring, the uncertainty is one of the biggest concerns for Gagne, who only recently took over the family business. We would like to see this resolved, Gagne said. I think it is ridiculous that what is going on is going on.
New U.S. Measures Add Cross-Border Strain
Washington is also set to impose its latest round of trade measures Tuesday, including an import ban affecting a list of Canadian goods ranging from alcohol and dairy products to motorcycles. The step adds further strain to cross-border commerce already unsettled by tariffs and stalled talks. For businesses like Infinity Flooring, the hope is that the uncertainty will not last much longer.
Until then, owners and workers are left to manage rising costs, limited alternatives and the risk of shortages as the dispute continues.
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CP24:This story was compiled and edited by the HeadTopics newsroom and HT AI from the reports above.
Canada-U.S. Trade Tariffs Trump Administration Small Business Supply Chain Canada-U.S. Trade Dispute Trump Administration Tariffs Infinity Flooring Ottawa Mark Carney Negotiations Cross-Border Supply Chains Canada-US Trade Dispute Trade Negotiations Paused Import Ban Canadian Goods
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