Ontario businesses brace for tariffs after U.S.-Canada trade talks collapse

Chapman's Ice Cream is replacing 70% of its American ingredients in response to the ongoing trade war between Canada and the United States. The decision comes as part of broader efforts by Canadian businesses to mitigate the impact of U.S. tariffs, which have led to increased costs and supply chain disruptions. The company, based in Canada, is adjusting its sourcing strategy to reduce reliance on American suppliers and maintain competitiveness in the domestic market. The trade war escalated after negotiations between Canada and the U.S. collapsed, prompting Canada to recall its negotiating team and adopt a firmer stance. This move has resulted in higher tariffs and potential job losses in Canada, but it has also sparked a shift toward local production and consumption. Companies across various sectors, including food and household goods, are reporting increased demand for Canadian-made products as consumers seek alternatives to imported items. According to recent Ipsos research conducted exclusively for Global News, 63% of Canadians believe Canada was right to stand firm during trade talks, even if it meant higher tariffs and job losses. This support is consistent nationwide, though there are notable generational and income-related differences. Baby boomers and more affluent Canadians show stronger support for the government’s position, with 80% and 76% respectively backing the decision. In contrast, only 48% of Generation Z and 45% of those earning less than $40,000 agree with the approach. The study highlights a growing divide between older, more financially stable Canadians and younger, lower-income individuals. While 67% of Canadians believe they are willing to endure economic hardship to protect Canadian sovereignty, this willingness varies significantly. Only 41% of Gen Z respondents expressed readiness to accept personal financial sacrifices, compared to 67% of boomers. Similarly, 61% of those earning over $100,000 are willing to pay a personal price, versus 45% of those earning under $40,000. As the trade conflict persists, many Canadians remain confident in their political leaders' ability to navigate the situation. A slight majority, 59%, believe Canadian leaders can manage the challenges posed by U.S. President Donald Trump. However, this confidence may wane if the dispute continues for an extended period. Currently, 67% of Canadians expect the tensions to remain unresolved for some time, marking a three-point increase since July 2025. In response to the trade war, several Canadian companies are adapting their strategies. For instance, aVenco, a Bowmanville, Ontario-based parchment paper company, has seen a significant rise in direct-to-consumer sales as customers opt for locally sourced products. The company reports that direct orders have surged from approximately 20 per year to hundreds in the past week alone. Meanwhile, its U.S. business, which accounted for 30-40% of sales before the tariffs, has effectively halted due to the 50% import duty imposed on Canadian-manufactured goods. Similarly, G.E. Barbour Inc., a New Brunswick-based manufacturer of food products, is shifting its focus away from the U.S. market and toward domestic and international opportunities. The company, which previously relied heavily on U.S. sales, is expanding its presence in Quebec and Ontario and launching an online store dedicated to Canadian brands. This initiative aims to create a marketplace for domestic producers that may not otherwise be available in traditional retail settings. These developments reflect a broader trend of Canadian businesses seeking to bolster local economies and reduce dependence on foreign markets. As the trade war continues, the emphasis on domestic production and consumption is likely to intensify, shaping the future of commerce and consumer behavior in Canada.