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Canadian Small Businesses Brace for a Double Blow from U.S. Trade Dispute.

Dainty Foods, a Canadian rice milling company, is facing uncertain times as the ongoing trade tensions between the United States and Canada are causing significant disruptions to their operations. The company had been experiencing a surge in demand for precooked and flavored rice products for microwaving, which had boosted its prospects. However, President Trump’s tariff measures and Canada’s retaliatory strikes have thrown a wrench in their plans, leading to increased costs for importing and exporting goods. Dainty Foods now faces a double hit, with higher tariffs on imports from the United States and the potential for even higher export costs if Trump follows through on further threats. The company’s chief executive, James Maitland, is finding it difficult to make any business decisions with confidence due to the uncertainty surrounding tariffs.

While larger companies like Walmart may have the resources to adapt to the complexities of a tariff system, smaller businesses like Dainty Foods and others across Canada lack the expertise and financial cushion to navigate the challenges posed by tariffs. Many small and medium-sized businesses are struggling to absorb the increased costs and uncertainties associated with trade damage. Some companies, like Wonder Pens, are facing higher prices for imported goods from the United States due to Canadian tariffs, and are concerned about the potential impact on their online sales to American customers. The declining value of the Canadian dollar is also contributing to higher prices on overseas products.

The trade war is also affecting cinematographer Ron Sim’s business, which specializes in converting vintage still-camera lenses for use on digital motion picture cameras. Sim had brought his manufacturing back to Canada from Thailand to protect sales to the United States, but he now faces the possibility of being affected by renewed tariffs. The uncertainties surrounding tariffs are causing stress and vulnerabilities in the operations of many small and medium-sized businesses in Canada.

Source: https://www.nytimes.com/2025/03/22/world/canada/trump-tariffs-canada-small-businesses.html

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