Businesses from B.C. to Atlantic Canada get set for trade war with U.S. [Video]

Domestic exporters will wake up to a grim new reality on Tuesday as U.S. President Donald Trump launches a trade war with Canada and Mexico by imposing 25 per cent tariffs on most imported goods, while hitting the energy sector with a 10 per cent levy.

Mr. Trump’s decision to impose across-the-board tariffs this week will affect businesses ranging from B.C. lumber companies to Alberta oil producers, prairie farmers and potash miners, Ontario and Quebec manufacturers and Maritime seafood companies. Canada’s trade-focused economy sends roughly 75 per cent of its exports to the U.S. market, with $593-billion of goods heading south in 2023.

Tariffs are expected to devastate the auto industry, which has been building cross-border supply chains for decades.

Flavio Volpe, head of the Automotive Parts Manufacturers’ Association, which represents dozens of Canadian suppliers, predicted the North American auto industry would likely shut down within a week. That’s because manufacturers, buyers and suppliers cannot afford a 25-per-cent hike in costs, and will put …