US-Canada trade war impacts small businesses and municipal budgets

A trade war between the United States and Canada is creating financial strain for small businesses and municipal governments. Following reciprocal tariffs on approximately $20 billion worth of goods, the conflict has impacted roughly 5.5% of bilateral trade between the two nations.

Small business owners report significant challenges, including canceled orders and potential taxes of up to 50% on certain products. For example, Jasper Hill Farm in Vermont reported immediate cancellations of holiday orders from Canadian wholesale customers.

In Canada, the City of Winnipeg estimates it could face up to $4.7 million in additional costs for upcoming construction projects through 2027 due to tariffs and counter-tariffs. This includes potential budget increases for the $3.1-billion North End sewage treatment plant upgrade, though city officials are attempting to mitigate these expenses by exploring alternative suppliers.