The ongoing trade difficulty with the United States has brought significant uncertainty for businesses in Ontario. With back-and-forth tariff talks between Canada and the U.S., global relations have added yet another consideration to a long list for business owners that shape day-to-day operations.
At the time of writing, things seemed to be heading in the right direction, and experts predicted many goods will remain tariff-free.[1] Then, a digital service tax caused President Donald Trump to halt negotiations between the countries ahead of a July 21 deadline to strike a trade deal, before Ottawa scrapped the digital service tax and negotiations resumed.[2]
This rapidly changing environment has left many Canadian businesses with their heads spinning. However, Canada, Ontario, and local municipalities have brought forward efforts to ease the minds of Canadian business owners through various policies.
Namely, on March 17, St. Catharines city council approved a temporary “Canada-First” procurement policy as a mitigation strategy for potential disruptions and help support local businesses. The policy prioritizes Canadian-made goods and municipal purchasing through engaging with key partners and a series of initiatives to support businesses navigate tariff-related challenges, including the facilitation of connections between local suppliers and buyers.[3] The City of St. Catharines continues to provide tariff resources and updates on its website and through investinSTC.ca.[4]
Navigating these peaks and valleys is certainly a stressful task. The resulting complications in relations have already made its way into the court system. In the recent case of Titan Tool & Die Limited v. Unifor and its Local 195, et al.,[5] a union protested their company (a manufacturer located in Windsor, Ontario)’s decision to relocate the tooling to the United States, causing a loss of work. The union blocked the manufacturer’s premises, preventing the removal of the tooling. The applicant company was ultimately successful in obtaining an injunction to restrain the blockade, but this case serves as just an example of the many, varying effects of the ongoing “trade war.”
Daniel & Partners LLP has the knowledge and expertise to help navigate the legal implications on contracts, operations, compliance and more in order to support your business and keep you out in front of any disruptions.
[1] Jeff Lagerquist, “Trump’s tariff war: Canada expected to keep NAFTA 2.0 ‘carve-out’ in new U.S. trade deal” (25 June 2025), online: <https://ca.finance.yahoo.com/news/trumps-tariff-war-canada-expected-to-keep-nafta-20-carve-out-in-new-us-trade-deal-134821691.html>.
[2] Promit Mukherjee and Doina Chiacu, “US, Canada to resume trade talks after Ottawa drops digital tax” (30 June 2025), online: <https://www.msn.com/en-ca/politics/government/us-canada-to-resume-trade-talks-after-ottawa-drops-digital-tax/ar-AA1HHXMa?ocid=BingNewsSerp>.
[3] The Corporation of the City of St. Catharines, “City Takes Action to Protect Local Economy Amid U.S. Tariffs” (18 March, 2025), online: <https://www.stcatharines.ca/en/news/city-takes-action-to-protect-local-economy-amid-u-s-tariffs.aspx>.
[4] https://www.investinstc.ca/site/home
[5] 2025 ONSC 2162.