Canadian small businesses are reacting strongly to new tariffs from the United States. President Donald Trump’s recent trade policies, aimed at boosting U.S. manufacturing, are causing concern just north of the border. The new rules include a 10% tariff on Canadian energy and 25% tariffs on other goods. These changes started in March 2025. They are now affecting businesses and shoppers across Canada. Many feel that trust between the two countries is fading. With over $762 billion in goods traded between the U.S. and Canada in 2024, the stakes are high for both economies.
Trade Relationship Under Pressure
Canada and the U.S. have long depended on each other for trade. According to the Office of the United States Trade Representative, more than 75% of Canada’s exports go to the U.S. Meanwhile, almost half of Canada’s imports come from American suppliers.
However, Trump’s new tariffs have shaken this bond. On top of energy and general goods, the U.S. placed a 25% tariff on vehicles not made in the U.S. This move impacts Canada and Mexico, two major hubs for car production. An additional 25% tariff on auto parts is set to begin next month.
While some goods under the United States-Mexico-Canada Agreement (USMCA) are exempt, many others are not. This mix of rules has made trade more complex and unpredictable.
Canadian Businesses Take a Stand
In response, Canadian businesses are pushing back in creative ways. Some are using national pride to fight what they see as unfair treatment.
Balzac’s Coffee Roasters, a café chain in Ontario and Toronto, made headlines by renaming the popular “Americano” drink to the “Canadiano.” It’s a small gesture, but one that speaks volumes.
Your Independent Grocers, a supermarket chain owned by Loblaw Companies, has also joined in. They now label products made in Canada with a maple leaf symbol. Items affected by U.S. tariffs are marked with a “T” on both shelves and online.
Voices from Canada’s Business Community
Corinne Pohlmann is the executive vice president of advocacy at the Canadian Federation of Independent Business (CFIB). This group represents over 100,000 small businesses across almost every province and territory in Canada.
She says the impact of tariffs goes beyond higher costs. Many members are feeling betrayed.
“For a lot of Canadians, it felt like a betrayal,” Pohlmann said.
CFIB data supports this view. A December 2024 survey found that half of their members deal directly with U.S. imports or exports. That number doesn’t include those who rely on U.S.-linked suppliers or buyers.
In a March follow-up, more than 25% of members said demand for Canadian-made products was rising. But over half agreed that the U.S. was no longer a dependable trade partner.
Trust Issues on the Border
These tariffs are changing long-standing business relationships. Small business owners are now rethinking contracts and partnerships. Many are asking CFIB for help in negotiating new terms with American partners.
Pohlmann said that the emotional toll is real. “People are stressed, not just about the money, but about what this means for the future,” she added.
Liquor Board Stops U.S. Products
The Liquor Control Board of Ontario (LCBO) is another example of protest. On March 4, it stopped buying American-made alcohol. Stores now display signs that read, “For the good of Ontario, for the good of Canada,” to explain the missing bottles.
These include popular U.S. brands like Tito’s Vodka and wines from California. A photo from an LCBO in Toronto showed workers removing American wine from shelves the same day the new policy started.
Exceptions and Clarifications
The LCBO clarified that some products are still allowed if they are made in Canada, even if the company is U.S.-owned. One example is Coors Light beer, which is brewed both in Canada and the U.S.
“While we are a global business, our beers and beverages are generally made in the markets in which they are sold,” said Rachel Gellman Johnson, senior director of communications at Molson Coors.
Hard Power, Soft Power
Tariffs are often seen as a form of “hard power” — a way for countries to push for change using economic pressure. But this approach may hurt America’s global image, or “soft power,” too.
Former U.S. Secretary of State Antony Blinken shared his concern during a CNBC interview. He warned that losing soft power could weaken U.S. influence worldwide.
“The idea that we would not only see China try to develop more soft power, but that we would cede our own… not good for the country, not good for our interests,” Blinken said.
