Business Daily Has Canada lost its trade war with the US?
14 snips
Oct 13, 2025 Canada's recent decision to drop tariffs on U.S. goods marks a significant shift in trade relations, ignited by Prime Minister Mark Carney's new economic framework with President Trump. With small businesses struggling and job losses in Ontario, the stakes are high. Public sentiment oscillates as Canadians reconsider their buying habits. Amid escalating tariffs, exporters seek new markets to reduce reliance on the U.S. Meanwhile, there’s cautious optimism for future negotiations as stakeholders push for innovation to strengthen the domestic economy.
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Canada Drops Tariffs To Reset Talks
- Mark Carney announced Canada would match the US by removing many retaliatory tariffs to restart talks under USMCA.
- Everyday consumer goods will cross tariff-free while Ottawa pursues a better renegotiation outcome.
Local Consumers Shun US Purchases
- Toronto residents described avoiding US travel and purchases as a patriotic response to tariffs and politics.
- Many said they were staying home and spending more money within Canada instead of visiting the US.
Businesses Diversify Away From US Reliance
- The Canadian Chamber of Commerce reports exporters and suppliers are diversifying away from the US amid uncertainty.
- Roughly 27% of exporters moved away from the US and 40% diversified supply chains in months of disruption.