Canadian businesses are largely resisting the urge to rush products across the border as they face another looming tariff deadline from U.S. President Donald Trump.
Instead of scrambling to get shipments into the United States before Aug. 19, many exporters appear to be weighing their options and preparing for the possibility that the latest threat may never fully materialize.
New tariffs would affect billions in Canadian exports
A new round of 50 per cent tariffs targeting nearly US$20 billion worth of Canadian goods is scheduled to take effect Aug. 19.
The products affected range from dairy items to down jackets.
Unlike many of Trump's previous tariff measures, the proposed duties would apply even to goods that comply with the Canada-United States-Mexico Agreement (CUSMA), eliminating an exemption Canadian exporters have often relied on.
That has left businesses facing significant uncertainty as the deadline approaches.
Companies taking a wait-and-see approach
Janine Harker, president of the Canadian Society of Customs Brokers, said many businesses have not responded by front-loading shipments in an effort to beat the deadline.
Instead, companies have settled into what she described as a period of "watchful waiting."
Businesses are closely watching to see whether Trump follows through on the tariff threat or ultimately backs away from it.
That uncertainty has fuelled discussion around the acronym TACO, short for "Trump Always Chickens Out," a reference to the belief among some market observers that the president has a history of softening or reversing tariff plans after initially announcing them.
Businesses appear more accustomed to trade disruptions
The approach marks a contrast with last summer, when retailers and exporters around the world rushed shipments to get ahead of U.S. tariff deadlines.
Industry observers say Canadian companies now seem more accustomed to ongoing trade disruptions and policy swings.
Rather than reacting immediately, many businesses are focused on assessing the potential financial impact should the tariffs move ahead as planned.
While uncertainty remains high, exporters appear to be betting that patience may prove just as valuable as speed in the latest chapter of the Canada-U.S. trade dispute.
- with files from The Canadian Press
