Canadian businesses are facing growing pressure as former U.S. President Donald Trump continues to roll out and roll back tariffs without warning. The unstable trade policy has triggered fears of economic harm, especially for small and medium-sized companies already hurt by the COVID-19 pandemic.
From catering companies in Alberta to importers in Vancouver, business owners are scrambling to adapt. Many are now using lessons from the pandemic to prepare for what they call “tariff whiplash.”
COVID-Era Lessons Return as Tariffs Spike
Todd Rutter, co-owner of A Cappella Catering Co. in Edmonton, said the unpredictability of Trump’s latest tariff moves feels like déjà vu.
“The pandemic nearly wiped us out,” Rutter said. “Now, with these tariffs changing every day, we’ve had to bring back the same survival tactics.”
Rutter, who admits he’s “not a tech guy,” has built a simple spreadsheet to track costs for his top 100 ingredients. If prices spike again, he may add a “tariff surcharge” to customer bills.
“We don’t want to, but if we don’t act fast, we won’t make it,” he said.
Tariff Turmoil Hits Canadian Shippers
At Carson International, a customs brokerage in Vancouver, chaos erupted earlier this week. President Trump’s sudden announcement of 104% tariffs on Chinese imports forced many clients to change their shipping plans overnight.
“We had cargo stuck in Asian ports,” said Dave Pentland, the company’s vice-president. “They weren’t ready for the new rules, so they paid to store it until they could figure out their next move.”
On Wednesday, Trump added another twist. He introduced a 90-day pause on tariffs for most nations, but kept a 10% duty on nearly all global imports. While this move gave shippers a chance to resume activity, many say the damage is already done.
“Freight is moving again,” Pentland said, “but after some steep storage fees.”
Canadian Imports Still Under Pressure
Canada wasn’t so lucky. Earlier in March, Trump had imposed 25% tariffs on goods from Canada and Mexico. Though some relief came in the form of 10% tariffs on energy and potash, other Canadian exports remain heavily taxed.
Goods outside the Canada-U.S.-Mexico Agreement (CUSMA) continue to face stiff levies. Tariffs on steel, aluminum, and cars are still in place.
BC Businesses Hit Hard by Shifting Policy
Fiona Famulak, CEO of the BC Chamber of Commerce, said the frequent policy changes are causing “whiplash” for business owners.
“Yes, we’re thankful for the 90-day pause,” she said, “but what happens after that? There’s no certainty.”
She compared the current trade environment to the early days of the pandemic. But in some ways, she said, this is worse.
“At least the pandemic followed science. This is unpredictable and feels political.”
She advised businesses to plan ahead, cut costs where possible, and look at expanding into new markets.
Layoffs and Relocations Begin
In the days before Trump’s latest tariff speech—dubbed “Liberation Day”—some BC businesses had already started laying off workers, either temporarily or permanently. Others were moving parts of their operations into the U.S. to escape high costs.
“There will be pain,” Famulak said. “It’s very hard to make decisions when the rules change every other day.”
Seniors Also Feeling the Heat
Even those outside the business world are worried. Ramona Kaptyn, a retired advocate in Surrey, B.C., said the tariff war is shaking her financial future.
“I’m in my late 70s, and I’m scared to even check my retirement savings,” she said. “If this continues, I might outlive my money.”
Kaptyn said many seniors depend on Old Age Security and the Canada Pension Plan, and they can’t afford major hits to their savings.
Uncertainty Rules the Day
With Trump keeping tariffs on Canada in place, businesses are left guessing. Some are adjusting shipment schedules weekly. Others are creating price buffers in case duties rise again.
The message from experts? Prepare for anything.
“It’s a rollercoaster,” Rutter said. “But we’ve learned to ride it before. We’ll do it again.”
