The announcement, made via a letter posted on Trump’s Truth Social platform, also included threats of 15–20% blanket tariffs on most U.S. trading partners, reigniting concerns about global protectionism and economic uncertainty.
Key Sectors at Risk: Metals, Autos, and Manufacturing
Canada, which exports approximately 75% of its goods to the United States, could face significant headwinds if these tariffs are enacted. Our nation’s automotive industry, metals sector, and advanced manufacturing hubs—many of which are concentrated in Ontario—are directly in the crosshairs of Trump’s proposed levies.
Already, Canada has been hit with a 25% tariff on select exports and remains vulnerable to ongoing U.S. tariffs on steel, aluminum, and vehicles. The new threats come as U.S.-Canada trade negotiators approach a key deadline to revise terms under the Canada-United States-Mexico Agreement (CUSMA). Whether these tariffs would apply to CUSMA-compliant goods remains unclear.
Tariffs Tied to Political Demands and Public Health Issues
Trump’s justification for the tariffs includes long-standing trade grievances, such as Canada's dairy policies and trade deficit, but also links to unrelated issues—namely Canada’s alleged role in fentanyl trafficking. However, U.S. border data suggests that less than 0.2% of fentanyl seizures occur at the Canadian border, with the vast majority entering via Mexico.
In response, Canadian Prime Minister Mark Carney emphasized the government’s commitment to protecting Canadian workers and businesses. Canada has already increased border funding and appointed a “fentanyl czar” in early 2025 in response to U.S. concerns.
Canadian Businesses Face Growing Uncertainty
While the full impact of Trump’s threats remains to be seen, one thing is clear: Canadian companies are entering another period of economic turbulence. Volatile trade dynamics, rising protectionism, and shifting global alliances all contribute to a business environment where agility, capital preservation, and long-term planning are critical.
For Canadian investors and business owners, this moment serves as a stark reminder: external risks can escalate quickly—particularly for export-heavy industries.
Lendworth’s Perspective: Protecting Capital Amid Volatility
At Lendworth, we continue to monitor these developments closely. As a Canadian-based mortgage investment corporation, our lending portfolios remain focused on asset-backed residential mortgages in stable urban markets across Ontario. Our conservative underwriting standards and sub-80% loan-to-value lending approach are designed to weather geopolitical storms like this.
Now more than ever, preserving wealth and investing in resilient, real asset-backed strategies is a prudent path forward.