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President Donald Trump’s decision to impose 25% tariffs on all Canadian imports will pose a serious challenge to Brampton businesses, particularly those deeply embedded in North American supply chains. Many Peel Region companies rely on seamless trade with the U.S., and these tariffs threaten their competitiveness.
Take Zochem, a Brampton-based manufacturer of zinc oxide. The company exports over $100 million worth of this essential material to the U.S. annually, where it is used in tires, rubber, pharmaceuticals, and food additives. These tariffs will raise costs for U.S. manufacturers and consumers alike, driving up prices for everyday goods. The auto sector, another highly integrated industry, could see production slowdowns, leading to job losses and increased vehicle costs for American buyers.
Beyond manufacturing, these tariffs will ripple through the broader economy, raising prices on groceries, appliances, and other consumer goods. As costs rise and demand shrinks, job losses could follow—especially in sectors like hospitality and retail.
Canada’s Response: Necessary but Not Enough
The federal government has responded with retaliatory tariffs on $30 billion worth of American goods, with additional tariffs planned. Ontario and other provinces have removed U.S. alcohol from shelves, signaling not just a symbolic stance but also affecting $1 billion worth of sales. However, while these measures may exert pressure, they also risk further economic pain. A prolonged trade war would weaken the Canadian dollar and could shrink Canada’s GDP by 2.6%, costing Canadians $1,900 per person annually, according to the Canadian Chamber of Commerce.
The Bigger Lesson: Strengthen Canada’s Resilience
Rather than relying on reactive measures, Canada must use this moment to invest in long-term economic resilience. That starts with removing outdated interprovincial trade barriers, which cost our economy $200 billion annually, according to the Canadian Federation of Independent Business. Regulatory inconsistencies on goods, labor, and services continue to stifle internal trade. The Brampton Board of Trade strongly advocates for eliminating these barriers to unlock growth and strengthen our domestic market.
At the same time, Canada must accelerate efforts to diversify trade beyond the U.S. Expanding agreements with ASEAN, Mercosur, the European Union, and India would reduce reliance on any single market and create new opportunities for Canadian businesses.
A Call for Strategic Action
These tariffs are a stark reminder of the risks of over-dependence on one trading partner. While we hope this dispute is short-lived, Canada must take decisive steps now—liberalizing internal trade and securing broader global partnerships—to build a more self-reliant, resilient economy.
We can’t decouple from the US, but we can diversify. The Canada-US relationship may never be the same again, and in a time when China and Russia threaten US hegemonic continuity, I’m not sure there’s much strategy to Trump 2.0.
Ultimately, President Trump shoes us how fragile the rules based trading order actually is. With an unpredictable leader south of the border, Canada cannot rely on the US in the ways we used to. This is an opportunity to not only build up our economy, but also our national identity.
Reach out to me at vsingh@bramptonbot.com to share how the tariffs will impact you.
