Collapse of Canada-U.S. trade talks a ‘nightmare scenario’ for B.C. small businesses

The collapse of the Canada-U.S. trade talks and new U.S. tariffs have hit a small Coquitlam, B.C., stationery company hard.

Hemlock & Oak had already promised to absorb the costs on all U.S. pre-orders of 2027 planners, which already adds up to $100,000.

“We’ve tried to prepare as much as possible over the last month, ever since we found out about this, but it’s basically buckle up,” Tia Masic from Hemlock & Oak said.

Trade talks between Canada and the U.S. broke down late on Friday, with both sides blaming each other for last-minute changes.

New 50 per cent U.S. duties now apply to $28 billion worth of Canadian exports, from building products and dairy to alcohol and honey.

“This is definitely a nightmare scenario for many small businesses,” Ryan Mitton with the Canadian Federation of Independent Business said.

“You look at the list of tariffs that are going to impact them; there’s 18 pages of items that are at the heart of what small businesses sell and do.”

Existing sectoral tariffs on steel, aluminum, automotive and softwood lumber also stay in place.

“We’re working very closely with the federal government; we support their decision to walk away from the negotiations,” B.C.’s Minister of Transportation, Mike Farnworth, said at an event on Monday morning.

The trade fight could escalate; the prime minister plans counter tariffs beginning next month and they may be more targeted than dollar for dollar. U.S. President Donald Trump is now threatening more new tariffs as of Jan. 1, 2027.

“It’s a bizarre policy for Americans; it’s going to hurt them,” he said. “Unfortunately, Canada has to hit back.”

There’s a line, and Donald Trump is trying to cross it. Canada will never be the 51st state. pic.twitter.com/3Y37jcOLEU

At Hemlock & Oak, they said the plan is to now try and diversify their customer base and keep trying to find ways to stay in business.