BMCC Statement on the Recent U.S. Tariff Decision

August 7, 2025

Canada–U.S. Trade Under Strain: What This New Wave of Tariffs Means for Black Entrepreneurs

On Thursday, July 31, 2025, just ahead of the trade agreement renegotiation deadline, the U.S. administration announced a unilateral increase in tariffs to 35% on Canadian goods not compliant with the Canada–U.S.–Mexico Agreement (CUSMA). These measures are set to take effect on August 7, 2025.

While products meeting CUSMA origin rules remain exempt, this decision has created an atmosphere of economic uncertainty, especially for small and medium-sized enterprises (SMEs) already weakened by post-pandemic disruptions, ongoing inflation, and fragile supply chains.

Disproportionate Impact on Black-Owned Businesses

The Black Manitobans Chamber of Commerce (BMCC) emphasizes that Black-owned businesses in Canada, particularly in Manitoba, are primarily micro-enterprises or start-ups. These businesses often operate with limited financial margins, and face restricted access to credit, subsidies, and international trade networks.

Imposing such heavy tariffs — under the guise of internal security concerns — without prior dialogue with trade partners, undermines fair market access. For entrepreneurs from racialized communities, it becomes yet another barrier to overcome.

Although most Canadian exports technically remain protected under CUSMA, the confusing or selective application of these new tariff rules may discourage Black entrepreneurs from initiating or continuing cross-border business activity.

Economic Analysis: An Uneven Shock

Larger corporations typically have the legal and logistical infrastructure to quickly adapt to changing trade requirements. That’s not the case for independent entrepreneurs or Black-led start-ups, who may:

Postpone or cancel contracts with U.S. partners
Suffer costly customs delays
Be forced to absorb unplanned additional expenses

The most vulnerable sectors include artisan products, food processing, textiles, natural cosmetics, and certain digital services subject to complex origin regulations.