VANCOUVER, BRITISH COLUMBIA - Trade talks between Canada and the U.S. broke down yesterday, and the ripple effects could show up in everyday life sooner than people think. Prime Minister Mark Carney announced he had suspended trade negotiations with the United States after what he called a series of demands that “asked too much and offered too little.”
Economics professor Dr. Michael Batu of the University of the Fraser Valley says the fallout will hit close to home: “Yesterday’s breakdown of the trade negotiations is critical and its economic impact will definitely be felt by all of us.”
Batu points out that almost 4 in 10 small Canadian businesses that sell goods to the U.S. are now caught up in the new tariffs — and a lot of Filipino-Canadian businesses fall into that group because they’re closely tied to U.S. suppliers and customers. "For Filipino-Canadian exporters operating on tight margins, a sudden 50% tariffs will be difficult to absorb, meaning some may be completely priced out of the U.S. market overnight," Batu said.
But the economic pain will now be a two-way street as Carney confirmed Canada will respond dollar-for-dollar with its own tariffs on sectors like steel, dairy, appliances, and electronics, acknowledging the government is taking the step “reluctantly” because it knows the move will raise costs for Canadians too.
Batu says that trickle-down effect could hit places like your neighbourhood Filipino bakery or grocery store — if the packaging or ingredients they import get pricier, that cost usually gets passed on to you at the register. "Canada’s retaliatory tariffs will have inflationary effects locally. For example, a local Filipino bakery or grocery store relying on cross-border packaging or specific agricultural imports will see their overhead costs spike," he said.
Multiply that across enough businesses, and it adds up to a higher cost of living for everyone. It could also mean people start pulling back on things like eating out or weekend getaways, which then hurts local businesses even more.
So what happens next?
Batu says a lot of small business owners who depend on U.S. trade are playing it safe for now — holding off on hiring, delaying big equipment purchases, and ordering less stock just to keep enough cash on hand while things shake out. "The way I see it, given the uncertainty, many small businesses that rely on the U.S. market are entering a "wait-and-see" mode."
Carney, for his part, framed the moment as an opportunity rather than just a setback, saying that diversifying trade and building up Canada’s own economy “is not our Plan B — it has been the plan from the start.”
For the Filipino-Canadian business community, that could mean turning a difficult moment into a reason to build something more resilient—one that isn’t dependent on a single border, supplier or customer base. "Businesses should adapt to a high-tariff environment. Businesses should seek to reduce their reliance on U.S. suppliers and buyers. They should diversify their supply chains by looking instead toward domestic alternatives or other international trade partners to source materials and sell goods," Batu explained.
