Abbotsford – Abbotsford Chamber of Commerce released an Op/Ed about President Trump’s latest Tariffs on Canadian Goods and Services:
Abbotsford businesses exporting to the United States should review their product exposure following the announcement of potential new 50% U.S. tariffs on a range of Canadian goods.
The new tariffs are scheduled to take effect on August 19 and apply to certain Canadian products connected to three separate U.S. trade actions concerning dairy, alcoholic beverages, and motor vehicles. These tariffs are additional duties, meaning they stack on top of any tariffs, fees, or charges that already apply.
Importantly, these Section 338 tariffs are expected to apply to impacted goods regardless of whether they qualify under the Canada–United States–Mexico Agreement (CUSMA).
“For a community as trade-dependent as Abbotsford, uncertainty carries a real economic cost. We expected some turbulence as trade negotiations continue, but these potential tariffs do nothing to strengthen businesses on either side of the border. We urge both governments to use the coming weeks to make meaningful progress before these tariffs take effect. Businesses need certainty to invest, hire, and grow.”
— Alex Mitchell, CEO, Abbotsford Chamber of Commerce
For businesses, the most important message is this: do not assume you are unaffected based on the title of the tariff action. While one proclamation relates to motor vehicles, the covered product lists extend well beyond vehicles to include products across agriculture, manufacturing, wood and paper products, electronics, machinery, construction materials, furniture, and many other sectors.
What is impacted?
Businesses should consult the full lists of affected goods and the related HS Codes to determine whether their products are included.
- List 1 – Broad list covering a wide range of manufactured and agricultural products
- List 2 – Dairy and dairy ingredient products
- List 3 – Alcohol, paper and packaging products, and sporting goods
Examples of impacted products include:
- Dairy: milk and cream powders, whey products, milk protein concentrates, casein, lactose, and other dairy-derived ingredients
- Alcohol: beer, wine, cider, and spirits
- Agriculture & horticulture: honey, flowers, bulbs, seeds, hops, mint
- Wood & paper products: plywood, particleboard, MDF, wood doors, paperboard, cartons, envelopes
- Textiles & apparel: fabrics, clothing, gloves, curtains and tarps
- Building materials: Portland cement, plaster and concrete products
- Electronics & machinery: semiconductors, monitors, refrigeration equipment, packaging and processing machinery
- Furniture & lighting: residential and commercial furniture, seating, lighting fixtures
- Sporting goods & toys: golf equipment, fishing rods, pools, toys, video game consoles
- Jewelry, art & collectibles
- Boats, floating structures and motorcycles
What this means for Abbotsford businesses
These proposed tariffs represent another significant escalation in Canada–U.S. trade uncertainty.
For exporters, they could mean higher costs, reduced competitiveness in the U.S. market, disrupted contracts, delayed orders, or pressure from U.S. customers to absorb some of the additional costs. Even businesses that do not export directly may experience impacts through suppliers, customers, increased input costs, or broader supply chain disruptions.
This is particularly concerning for Abbotsford. According to the Canadian Chamber of Commerce’s Business Data Lab, Abbotsford is British Columbia’s most tariff-exposed area. Our community combines a high concentration of export-oriented businesses with a strong reliance on the United States as our primary export market, making us especially vulnerable to changes in cross-border trade policy.
More than 330 Abbotsford businesses export to the United States, generating approximately $1.5 billion in annual exports. Goods exports account for approximately 12.5% of Abbotsford’s GDP, and more than 90% of local exporters identify the U.S. as their primary export market.
Combined with the Sumas border crossing, one of Western Canada’s busiest commercial gateways, and Abbotsford’s strengths in agriculture, food processing, manufacturing, aerospace, transportation, logistics, and industrial production, our local economy is uniquely exposed to disruptions in Canada–U.S. trade.
The Abbotsford Chamber of Commerce continues to support stable, predictable, and rules-based trade between Canada and the United States. Tariffs increase costs for businesses and consumers on both sides of the border, create uncertainty for investment, and make it more difficult for companies to plan, hire, and grow.
We continue to work closely with the Canadian Chamber of Commerce, the BC Chamber of Commerce, and governments at all levels to advocate for solutions that protect Canadian businesses and preserve the integrated North American economy.
This latest announcement also reinforces the importance of strengthening Canada’s economic resilience by expanding interprovincial trade, diversifying export markets, and investing in the infrastructure and policies that enable businesses to compete globally. While the United States will remain Canada’s largest trading partner, reducing our dependence on a single market is essential to building a more competitive and resilient economy for the future.
What businesses should do now
Businesses exporting to the United States should review their products against the relevant tariff schedules and confirm applicable HS or HTS classifications with a customs broker or qualified trade advisor.
Companies should also:
- Confirm whether any products are included in the new tariff lists.
- Review existing contracts for tariff, pricing, currency, and change-of-law provisions.
- Discuss potential pricing and delivery impacts with U.S. customers.
- Assess exposure through suppliers and imported inputs.
- Document increased costs, delayed orders, cancelled sales, or lost business opportunities.
- Continue utilizing CUSMA where applicable, while recognizing these new tariffs may still apply to otherwise qualifying goods.
Businesses should avoid making significant supply chain decisions based solely on headlines. The tariff schedules are highly technical, and the impact will depend on product classifications, contractual arrangements, and individual business circumstances.
The Chamber’s role
The Abbotsford Chamber of Commerce continues to monitor these developments and advocate for policies that support a competitive, resilient business environment.
We are actively collecting firsthand accounts from local businesses experiencing the impacts of tariffs and trade uncertainty. Whether your business is facing increased costs, delayed shipments, cancelled orders, supply chain disruptions, lost sales, or postponed investment decisions, your experience helps strengthen our advocacy with governments and our Chamber network.
If your business has been affected, we encourage you to share your story by emailing ceo@abbotsfordchamber.com.
Real-world examples help ensure the voices of Abbotsford businesses are reflected in policy discussions and strengthen our collective advocacy for a more stable, predictable, and competitive Canada–U.S. trading relationship.
Businesses requiring advice on how these tariffs apply to their specific products should consult a customs broker, trade lawyer, or qualified international trade advisor.
