Canadian businesses are already feeling the effects of President Trump’s proposed 25% tariffs on steel and aluminum imports. While the tariffs haven’t been implemented yet, companies in Canada are bracing for higher costs, with some even facing disruptions in their operations.

Vance Lyons, a Canadian resident, shared his frustrations: “People in Canada can no longer afford to travel outside the country because our currency is losing value,” he said.

The threat of tariffs has sparked varying opinions. “I don’t think it will happen,” says Paul Dutton, a Canadian resident. “It’s just a threat, and I’m not worried.” However, others like Lyons are angry about the potential consequences. “I think it’s foolish. I think it’s a stupid move,” Lyons added.

Businesses, too, are already feeling the pressure. Some products are getting delayed at the border, and trade between the U.S. and Canada is slowing down. Rahim Moloo, owner of Conquest Steel in Toronto, explained, “Our American distributors can’t take delivery of the products they’ve ordered from us. We’re working on shifting some of that inventory to the Canadian market at a lower price.”

Moloo added that they’ve had to adjust staffing schedules, shutting down the night shift and shifting workers to the day shift. He also mentioned that some Canadian distributors are pausing new orders from the U.S.

Despite the turmoil, President Trump has assured that the U.S. will benefit from the tariffs in the long term. However, Giles Gherson, CEO of the Toronto Region Board of Trade, notes that the U.S. is already profiting from trade with Canada. “Our economies are closely tied, and the U.S. has invested $500 billion in Canada,” Gherson said.

During Trump’s first term, similar tariffs were imposed but exemptions were granted. This time, however, Trump has stated there will be no exceptions, leading to strong opposition from Canadian leaders. “If it comes to that, our response will be firm and clear,” said Canadian Prime Minister Justin Trudeau.

In 2024, the U.S. imported over $7 billion in steel from Canada, according to the U.S. International Trade Administration. If the tariffs are implemented, Canada plans to impose 25% tariffs on $155 billion worth of U.S. goods.

Gherson warned of the consequences of such trade actions: “This could lead to massive shutdowns in sectors like U.S. auto manufacturing.”

Currently, the tariffs are set to take effect on March 12. As Joanne Tea, a Canadian resident, put it, “We can be friends, not enemies.”