Introduction: Indecision Is “Killer” for Small Business

“In business, indecision is killer,” warns Canadian entrepreneur Wes Love tariff uncertainty. His Toronto-based Taurus Craco firm imports machinery from overseas and distributes it across North America. Shifting US tariffs forced his business to pay nearly C$35,000 (~US$25,500) in duties after a shipment missed a deadline by minutes. With such unpredictability, effective planning becomes impossible. BBC News reports the deep toll tariff swings impose on small businesses.

The Current Tariff Rollercoaster

Since January, President Trump has repeatedly imposed, suspended, reimposed, and selectively exempted tariffs—starting with 25% on most Canadian goods on 1 February, later extending 25% globally to steel, aluminum, and vehicles in March, then raising metals to 50% this month. These changes directly impacted firms like Taurus Craco. Even when tariff exemptions are granted, payments often remain, leaving small businesses bearing unpredictable costs. Reuters highlights this chaotic cycle.

Canada Seeks Trade Certainty

Prime Minister Mark Carney has called the tariffs “unjust” and stated that Canada–US trade dynamics have fundamentally shifted. This spring tariff uncertainty, Carney led talks in Washington and at the G7, aiming for a mid‑July deadline on a trade/security pact. But President Trump recently abandoned negotiations over Canada’s digital services tax, prompting Carney to threaten retaliatory tariffs. Negotiations now hang in the balance. The Globe and Mail reports on this growing tension.

Ripple Effects Across Industries

• Manufacturing: Steel and aluminum exports dropped 25% and 11% respectively in April; vehicle exports fell 25%. Bank of Canada data highlights these losses.
• Small-business exporters: 56% have made operational changes. 30% delayed investments; 25% sought new clients outside the US, according to a Canadian Federation of Independent Business report.
• Service sector: Though not subject to tariffs, businesses like ElevatIQ faced a 50% drop in enquiries due to uncertainty. Canadian Business explores how non-export sectors suffer tariff uncertainty.

“Sport with Rules”: Business Calls for Stability

Entrepreneurs like Love argue businesses need a fixed framework: “Give us a set of rules and leave them alone… It’s like sport—everybody goes onto the field and you play to a set of rules, but you don’t change the rules mid‑game.” Gaphal Kongtsa of the Canadian Chamber of Commerce echoes this: businesses can’t thrive amid policy whiplash. Canada Chamber of Commerce warns of strategic paralysis without stable trade rules.

Conclusion: Certainty is the Real Competitive Edge

Canada’s economy grew just 0.8% in Q1 2025 and contracted slightly in April, according to Statistics Canada. For export-driven businesses, unpredictability is a strategic risk they can’t afford. The mid‑July deadline could bring needed clarity—or extend the uncertainty. In business and in sport, consistent rules matter most.

For more on Canada’s approach to trade amid conflict and cross-border policy shifts, check out The Morning News Informer. Read the original BBC report here.