Small businesses at front lines of tariff war, as many lose sales

Hellen’s company is one of the many small businesses grappling with new 50 per cent tariffs U.S. President Donald Trump imposed on billions of dollars’ worth of Canadian products over the weekend. The charges affect goods ranging from textiles to jewelry to toiletries.

Hellen said he has written to Prime Minister Mark Carney and Ontario Premier Doug Ford, asking them to levy reciprocal tariffs on hobby imports from the U.S., so that his U.S. competitors are not able to sell in Canada duty-free.

He also asked for COVID-style supports for small businesses.

“Small business is on the front lines here, and we are fighting the battle and we’re happy to,” he said. “But you can’t send us into the trenches without the proper equipment.”

So far, Hellen hasn’t stopped sending orders south of the border as he looked for ways to keep the lights on and employees on board.

However, others have paused shipments.

Brampton, Ont.-based artist David Irvine has halted deliveries to the U.S., which make up 85 per cent of his overall business.

Irvine, who runs the Gnarled Branch on Etsy, said he is working to pivot away from American customers, finding markets for his artwork within Canada at consignment shops, galleries and live events.

While some level of government support could help, Irvine said he suspects not a lot would be available for a business like his.

Port Coquitlam, B.C.-based Indigenous clothing company S & K Collective started receiving more orders from domestic shoppers, as she believes a fresh wave of patriotism flared up over the weekend.

Still, it doesn’t offset the customer base Samantha Sinclair would lose south of the border as she contemplates pausing shipments to the U.S.

“As a small business too, I’m paycheque to paycheque, (and) every order makes a difference,” she said. “Not having 60 to 70 per cent of my business is massive.”

Sinclair said she is exploring affordable ways to ship to her Canadian customers, which can be as high as $30 for an order to Ontario.

“People don’t want to pay that,” she said.

Jewelry maker Cindy Baldassi said she is expecting to lose roughly half of her customers as the trade war heats up.

“I have to start looking on how I can increase my sales elsewhere or my income,” said Baldassi in a phone interview on Sunday from her home in Calgary.

Baldassi said that 75 per cent of buyers purchasing her sterling silver, stone and dinosaur fossil jewelry were American.

She’s stressed, she said, but feels Carney did good by pulling away from negotiations with the Trump administration and pledging to retaliate.

She said Trump is a bully and has created a lot of uncertainty.

“We should fight back,” she said, “even though that is actually going to be very difficult on a lot of Canadians.”

Carney told a news conference Saturday that he called off the trade talks because the Americans offered a “bad deal” and were pushing terms he found unacceptable.

Ottawa will match Washington’s tariffs dollar-for-dollar beginning next month, Carney said, targeting sectors such as steel, dairy, appliances, agricultural equipment, pulp and paper and electronics.

When asked Saturday if Canada was in a trade war with its southern neighbour, he said, “Yes, that’s obvious.” 

Baldassi suspended her sales to the U.S. over the weekend and is now scrambling to update prices on her online shop and reaching out to American clients to notify them of the price changes.

“For example, if I have a $35 pair of earrings, then that’s another $17.50 that has to be added for American customers only,” she said, noting the uncertainty of what’s ahead is frustrating.

“I’ve already gone through the five stages of grief. I’m at acceptance already.”

Baldassi said she would also like to know more about what Americans were offering.

She said calls from Canadian leaders to support local businesses have slightly helped. She has received orders for her jewelry from Canadians in the last two days.

“I hope that we will see more of that because there are a lot of businesses that will be suffering.”

Carney said the U.S. government was trying to restrict Canada’s ability to make deals with other trading partners, and tried to restrict Canada’s protections for the French language.

This report by The Canadian Press was first published Aug. 24, 2026.

Fakiha Baig and Ritika Dubey, The Canadian Press

by The Canadian Press

Small businesses at front lines of tariff war, as many lose sales

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