Cindy Baldassi relies on American buyers to keep her stone-and-glass jewellery company going. Some 75% of sales of pieces including amethyst, sea glass and agates from her business, CindyLouWho2, based in Calgary, Alberta, come from Americans. But after trade talks between the US and Canada collapsed over the weekend and leaders of both countries pledged to slap 50% tariffs on each other's products, business owners on both sides of the border are bracing for the fallout.
With a majority of the items she sells falling under US President Donald Trump's newly imposed tariffs, Baldassi says she will need to add 50% to the price of most of her products to stay afloat. "It's quite likely that it will wipe out most of my US sales," Baldassi told the BBC. "I expect that at least half of my business will be gone." Canadian Prime Minister Mark Carney has pledged levies starting on 8 September on US steel, dairy, appliances and electronics.
Trump tariffs went into effect on Saturday, hitting Canadian wine, dairy, cement, clothing and hockey equipment. In Canada, it is not clear how much more severe the impacts will be, since the country has grown somewhat used to the on-again-off-again trade war. Lind Furniture has been in business for almost 60 years in the Canadian province of Ontario, selling leather furniture to big store clients like Sears and Costco over the years.
Sales dropped when Trump took office in 2025. "As soon as there were tariffs in the air, people put purchases on hold," Michael Saifer, general manager of Lind Furniture, told the BBC. Trump says Canada wants 'benefits' of being US state after trade talks collapse Now, his concern centres around Canadians' chances for victory.
"Everyone wants to sell to the Americans - they can buy from whoever they want," he said. "I don't know that we're going to win a war with them; we may get killed." The US tariffs that took effect after talks broke off on Friday apply to about $20bn (£15bn; C$28bn) worth of Canadian exports to the US - about 5% of what Canada ships to the US annually. The levies add to US tariffs already in place on Canadian steel, aluminium, automobiles and lumber.
Canada would be very exposed if the import taxes multiply on both sides because 70% of its exports are to the US. Navigating what comes next as both sides are dug in is proving a delicate balance for some business owners. Like many retailers, Matteo Sgaramella, founder of Toronto-based menswear brand Outclass, told the BBC that his company collects orders from clothing designers months before they are due to arrive in stores.
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