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Businesses along the Canada-U.S. border are facing higher costs, order delays and potential shortages as tariffs disrupt cross-border supply chains. Canadian companies are eager for a resolution, but the Trump administration says it sees no urgency to negotiate a new trade agreement.
OTTAWA — 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.
At Infinity Flooring in Ottawa, tariffs have hit a large portion of the carpet products the family-owned business sells.
“It’s all tariffed,” said Heidi Gagne, co-owner and managing director of the store as she pointed to a large display of products. 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’re 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. 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. 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’s ridiculous that what’s going on is going on. ” 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. For businesses like Infinity Flooring, the hope is that the uncertainty won’t last much longer.
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