A textile manufacturing company in Cambridge, Ont. says it’s trying to navigate an increasingly uncertain trade environment amid the escalating tariff battle between Canada and the United States. U.S. President Donald Trump recently imposed a 50 per cent tariff on roughly $20 billion worth of Canadian goods, including textile products. The announcement came after trade negotiations between Canada and the U.S. broke down late last week, creating uncertainty for Canadian businesses who rely heavily on the U.S. market. Among the companies trying to make sense of the changes is MW Canada, which manufactures fabrics for a range of industries. Matt Berger, the company’s vice-president, said some of their products will be included in the new tariffs while others will not, so MW Canada is working to find solutions for its customers. The goal, he explained, is to get through the uncertainty until, “ideally, some sort of durable long-term agreement is reached between the two countries.” Azim Essaji, an economics professor at Wilfrid Laurier University in Waterloo, believes the impact could be significant. “I do anticipate that, in the long run if these tariffs hold, that there will be businesses, entire sectors that will cease to exist in Canada,” he said. “Simply because they cannot survive on the strength of the domestic market alone.” Essaji urged Canadian manufacturers to take advantage of federal grants and other supports while also looking for ways to diversify their customer base beyond the U.S. “It was very convenient for Canada,” he said of the country’s former trade deal. “It was a massive edge that we had access to the largest market in the world. If that’s not going to be open to us, well, we have to adapt, right?” For MW Canada, finding new markets is easier said than done. “Everything takes time,” said Berger. “You can’t replace the world’s biggest market overnight.” Canada has announced countermeasures targeting U.S. goods, including 25 per cent tariffs on certain American textiles. In the meantime, companies like MW Canada must ensure their future isn’t hanging by a thread as the two countries continue to negotiate cross-border business. “The reality is, tariffs hurt everyone,” said Berger. “There’s no manufacturer that’s going to be unscathed. Getting hit with product coming in and product going out, it makes it makes for a very challenging situation.”
