No new tariffs for Canada. But uncertainty causes London businesses to 'play defensively'

Isha Bhargava · CBC News

· Posted: Apr 03, 2025 7:35 AM EDT | Last Updated: 6 minutes ago

Although Canada has been spared successful U.S. President Donald Trump's latest tariff announcement, businesses successful London say there's still uncertainty astir what comes adjacent and it's made it hard for them to program ahead.

Trump on Wednesday announced a acceptable of planetary reciprocal tariffs connected imports from dozens of countries, including "a minimum baseline tariff of 10 per cent" connected each goods coming into the U.S. However, goods compliant with the U.S.-Canada-Mexico Agreement (USMCA) volition beryllium exempt.

The White House said determination volition beryllium nary much across-the-board levies applied to Canada than what has antecedently been announced and nary further baseline tariffs. But Trump did spell up with slapping 25 per cent tariffs connected each afloat assembled foreign-made vehicles and immoderate parts.

The changes volition person a profound interaction connected the section system arsenic businesses conflict to marque decisions astir orders, suppliers and staff, said Graham Henderson, caput of London's Chamber of Commerce. 

"One thing is wide — it's not bully for the markets, it's not bully for concern confidence, it's not bully for the consumer, it's not bully for anybody," helium said.

"London is simply a bigger manufacturing hub than I deliberation galore radical springiness america recognition for. So, this is perfectly having an interaction on London and we know already there's layoffs taking spot and that radical aren't placing orders due to the fact that they're uncertain of the price."

Trump slapped a 25 per cent tariff connected Canadian goods (and 10 per cent connected energy) past month, supposedly successful effect to drugs and migrants coming into the U.S. crossed the bluish border, but made immoderate exceptions for importers who tin beryllium the products they're bringing successful from Canada are compliant with USMCA. 

Will Willemsen's Sunripe Freshmarket has two locations successful London and 1 successful Sarnia. The autarkic grocer buys lots of fruits and vegetables from the U.S., but Willemsen said fluctuating tariff announcements are disrupting already struggling proviso chains from the COVID pandemic.

"I deliberation everyone's conscionable confused and a lot of contracts are getting cancelled due to the fact that nary 1 truly knows what's going to happen," helium said astir immoderate suppliers he's dealt with. 

"There's a batch of variables present and what happens is that you conscionable unopen down. You don't privation to marque immoderate investments oregon instrumentality immoderate risks truthful alternatively of playing offensively, you play defensively."

Willemsen said he's purchased oranges from Florida for galore years, but has precocious started buying them from Egypt and Morocco instead, adding that he's trying to find much Canadian and European suppliers.   

London readying to trim red-tape for businesses 

Tariffs placed connected Canadian alloy and aluminum besides stay successful spot and immoderate section trade breweries are acrophobic it volition thrust up the outgo of their input materials. 

"Luckily, we bash root astir of our atom from Canada  but it would beryllium cans with the aluminum tariffs that the prices could decidedly spell up, oregon the proviso concatenation could get disrupted." said Gavin Anderson, president of Anderson Craft Ales successful London.

"We've just been trying to marque definite that we person Canadian supplies lined up and acceptable to go, and conscionable person a stockpile of cans to marque it done the adjacent small while, and hopefully this gets sorted retired soon. But I don't deliberation there's immoderate warrant of that."

In an effort to enactment the section economy, the City of London plans to update its Industrial Land Development Strategy to usage that onshore for companies provincial and national governments are trying to enlistee to Canada. The metropolis besides wants to amend zoning bylaws that would trim reddish portion for home-based businesses, specified arsenic repast boxes and tiffin services.

"Let's bring those jobs present to London. This is thing we tin bash to crook a hard concern into a large opportunity," said Mayor Josh Morgan. Both directives necessitate full council approval. 

"We cognize the system is apt to conflict done immoderate benignant of commercialized dispute, truthful we privation to bolster the system astatine the basal level, including for those who are trying to marque a mates other dollars by doing immoderate home-based businesses, peculiarly successful the nutrient sector."

Meanwhile Willemsen's biggest interest is however the Canadian authorities volition respond due to the fact that reciprocal tariffs connected imported American goods will summation costs for him and his customers. 

"The 1 happening they shouldn't taxation is nutrient due to the fact that the mean idiosyncratic is already struggling and if they're going to use taxes, they should bash it connected different commodities but food," helium said. 

Prime Minister Mark Carney volition contiguous Canada's program to code the tariffs later today.