US and Canadian firms brace for losses as trade war escalates

Business owners in Canada and the US are bracing for significant losses after trade talks collapsed, with both countries imposing 50% tariffs on each other's goods. The new levies threaten to wipe out sales for many small businesses reliant on cross-border trade. Canadian Prime Minister Mark Carney pledged counter-tariffs starting September 8 on US steel, dairy, appliances and electronics, matching Trump's "dollar-for-dollar". The US tariffs, effective Saturday, target approximately $20bn worth of Canadian exports, including wine, dairy, cement, clothing and hockey equipment. Small businesses are particularly vulnerable, with some owners predicting closures. Canadian firms face challenges as 70% of exports go to the US, while American retailers struggle with increased costs on Canadian-made products. The trade dispute has already reduced Canadian customer traffic at US border shops by 20%.