New U.S. tariff ‘going to be tough’ on Westman businesses: Chamber

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Local businesses should brace for economic disruptions following the United States’ decision to impose a 35 per cent tariff on Canadian goods, the Brandon Chamber of Commerce president said Friday.

“This is disappointing news,” Jennifer Ludwig said. “It’s going to be tough. Businesses have always been resilient, but many have been preparing for a worst-case scenario. This may not be it entirely, but it’s close. Most will have contingency plans in place.”

On Thursday, U.S. President Donald Trump followed through on his threat to increase tariffs on Canada to 35 per cent if Ottawa didn’t make a trade deal. The White House has said the tariffs will not affect goods compliant with the Canada-U.S.-Mexico Agreement on trade, commonly known as CUSMA.

Small businesses, especially those lacking the resources to ensure CUSMA compliance, are vulnerable to the fallout, Ludwig said.

The tariff hike will it businesses hard, Tyler Slobogian, the Canadian Federation of Independent Business senior policy analyst for the Prairies and Northern Canada, said Friday.

“The sudden increase to a 35 per cent U.S. tariff is a major blow to small and mid-sized businesses in Brandon and across southwestern Manitoba,” he said.

While many goods technically qualify for tariff exemption under CUSMA, Slobogian noted that navigating the legal and administrative requirements can be difficult, especially for SMEs without dedicated trade staff or legal teams.

“In practice, many of these firms may still end up paying tariffs or facing shipment delays. That’s a cost most of them can’t afford to absorb,” he said.

According to CFIB, some businesses have already paused marketing campaigns and delayed hiring plans due to tariff uncertainty. A previous survey found that nearly 70 per cent of small importers were already absorbing Canada’s retaliatory tariffs, while 63 per cent of small exporters were either covering or splitting U.S. tariffs.

“This new escalation only deepens the strain,” Slobogian said.

The CFIB is urging Ottawa to act quickly. Among its top recommendations: release the billions in collected counter-tariff revenue back to SMEs, implement a temporary reduction of the small business tax rate to zero, and cut Employment Insurance premiums to relieve pressure on employers.

“These businesses need help now, not later,” he added.

Ludwig said the Brandon chamber is focused on promoting local economic resilience. She encouraged residents to “support local and shop Canadian,” noting that internal trade agreements, such as new memoranda of understanding between Manitoba and other provinces, are signs of promise.

“There’s still opportunity in this,” she said. “We’ll continue to advocate for new trade routes globally and interprovincially. We’re in constant communication with government officials to relay local business concerns.”

She also confirmed that the chamber will take part in upcoming trade council meetings expected later this month, though no firm dates have been set.

While precise data on which Westman businesses will be hit hardest is still unclear, the advocacy groups identified manufacturing, metal fabrication and agri-food processing as high-risk sectors. These industries rely heavily on U.S. export markets and integrated supply chains.

“Some businesses are exploring diversification, but for many, that’s not a realistic or timely option,” Slobogian said. “They’re simply trying to stay afloat — cutting costs, holding off on expansion and waiting for clarity.”

Trump’s decision follows months of trade threats and rhetoric. A White House fact sheet justified the move by accusing Canada of failing to curb the flow of fentanyl and retaliating with counter-tariffs. The 35 per cent duty — signed by executive order — comes on the heels of other tariffs targeting Canadian steel, aluminum, automobiles and semi-finished copper.

“This isn’t just an economic issue — it’s political,” said Slobogian. “But our businesses are caught in the crossfire.”

Despite the uncertainty, local leaders remain cautiously optimistic.

“Brandon’s business community is resilient,” Ludwig reiterated. “This isn’t what we wanted to see, but we know that Canada needs to hold out for the right deal, not just any deal. And we’ll keep working together to support one another.”

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