The announcement is positive news for small- and medium-sized business owners. Over 65% of small businesses reported taking on the full cost of tariffs on US imports, according to the Canadian Federation of Independent Business. Until the tariff landscape becomes clearer and more stable, decision makers are more likely to delay starting large projects or buying expensive equipment

• From September 1, Canada will remove retaliatory tariffs on all US goods that fall under the United States-Mexico-Canada Agreement (USMCA). Some analysts view the move as a new chapter in trade negotiation developments between the US and Canada.
• The retaliatory tariffs on US steel, aluminum and automobiles stayed in place. Business owners in this sector were likely hoping for more favourable news and will be on the lookout for more certainty so that they can assess and estimate future margins.
• The announcement followed discussions with US President Donald Trump and is likely part of a strategy to set up favourable negotiations when the USMCA is reviewed in summer 2026.
• Canadian businesses are following the tariff announcement closely since the outcomes will affect supply chain and cost-benefit decisions. According to Statistics Canada, Canadian businesses are diversifying their supply chains and remaining cautious due to the uncertainty.

The Canadian Federation of Independent Business has reported that just under 20% of small businesses could face pressure to close if the trade dispute with the US continued for twelve months. For Canadian consumers, the removal of the tariffs could mean lower prices on US goods such as orange juice, coffee and tea. The tariffs were initially imposed by the Canadian government in March in response to US tariffs.

If you would like to discuss this economic and market update or have questions about your finances and investments, please feel free to contact me anytime.