Canadian manufacturers are already losing orders in the US as businesses prepare for President Donald Trump’s latest tariff threats, although Gordie Howe The International Bridge is set to open on Monday.
William Pellerin, an international trade lawyer, told Global News on Saturday that some Canadian companies report that they are already feeling the effects of Trump’s proposed 50 percent tariff before it takes effect on Aug. 19.
“We are already talking to a large number of customers who, because of this 50 percent tariff threat that will take effect next month, are already losing massive orders for their American customers,” Pellerin said.
Trump threatened tariffs on some Canadian goods last Sunday, along with another 10 percent tariff affecting goods outside the Canada-US-Mexico Agreement.
Pellerin said the proposed 50 percent tariff would make many Canadian products too expensive to compete in the U.S., particularly in sectors such as furniture and electronics.
“A 50 percent tariff really makes those Canadian businesses uncompetitive in the United States,” he said.
He said the uncertainty alone is already affecting employers, with US buyers pulling back on worries they could soon face significantly higher costs.
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“We’ve already seen some layoffs from Canadian manufacturers just because of this threat,” Pellerin said.
Furniture and wood products could be among the hardest hit sectors, with manufacturers in smaller communities heavily dependent on exports to the United States.
“A lot of these furniture makers are often two or three hundred jobs in a small rural town somewhere,” he said. “It’s going to shut down Canadian cities altogether. So we’re hearing the word ‘catastrophic’ from some of our customers.”
The latest tariff threats are part of an escalating trade dispute between the two countries following Canada’s retaliation against previous US tariffs.
Pellerin said Ottawa’s immediate priority should be to return to the negotiating table before the tariffs take effect, while also moving forward with legislation aimed at strengthening Canada’s forced labor rules.
Trade uncertainty comes as Gordie Howe International Bridge is set to open on Monday, creating another major trade crossing between Canada and the United States.
As it stands, the agreement says Canada will share 50 percent of net toll revenue with the U.S. during the first 15 years of the bridge, with the money going toward economic development on the U.S. side of the border, according to the Canadian government.
Trump’s post on his Truth Social platform came last Sunday to mark the opening of the new bridge to Detroit, which is officially set for Monday.
“Canada did not invite the United States to the opening, which is good, given that they are paying significant tariffs to the United States,” Trump wrote.
“The original bridge deal, which was horribly negotiated by a previous administration, no longer stands. We changed the terms of the deal so that the United States of America now gets 50% of the profit.”
Despite recent tensions, Housing and Infrastructure Minister Gregory Robertson said the two countries continue to have a strong working relationship.
“There are times when elbows get bumped a little bit … but we come out stronger and we have a beautiful bridge here that will serve Windsor in Detroit, Canada and the U.S. for generations to come.”
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