Canadian businesses reeling as US tariffs intensify trade war fallout

Canadian businesses are bracing for an uncertain future as the U.S.-Canada trade war escalates, with new tariffs disrupting supply chains and shaking investor confidence.

The strain deepened after U.S. President Donald Trump signed an executive order at the end of last month imposing a 35 percent tariff on Canadian goods excluded from the United States-Mexico-Canada Agreement (USMCA), adding to the challenges faced by Canadian businesses.

In Windsor, Canada, steps from the U.S. border, the impact is evident at a Stellantis automotive facility, where production halted earlier this year due to auto-import tariffs. Though the plant resumed two full shifts in June, its future remains uncertain.

"I have been in the trucking industry for 40 plus years. I initially started with six trucks in the basement of my house," said Steve Ondejko, president of Onfreight Logistics, a company heavily tied to the auto sector.

Many in Ondejko's industry are grappling with substantial losses.

"Everybody is down a substantial amount over the past, certainly the past six months, but certainly more so in the past three. Our industry is down anywhere from 10 to 15 percent and the outlook isn't great," he said.

Automakers including General Motors, Ford, and Stellantis continue to report staggering losses, with GM seeing a 35 percent drop in second-quarter profits, and others warning that tariffs could cost billions.

For Ondejko, the deeper challenge extends beyond tariffs, it’s the absence of clear direction that's amplifying uncertainty and stalling recovery efforts.

"That's our biggest issue right now is the indecision and the indecisiveness of business. We would like to see some decisions as to where it's going, then business can start taking over and preparing and investing and doing the things that they need to do to prepare for the business. Let's get negotiating. Let's figure it out," Ondejko said.

With U.S.-Canada trade talks expected to continue, workers and businesses yearning for stability are hopeful that an agreement will bring clarity, allowing companies to "start taking over and preparing" for the future, as Ondejko describes.