B.C. Businesses Warn Looming 50% U.S. Tariffs Could Threaten Jobs and Survival

Olivia Singh

8/18/20263 min read

British Columbia businesses are warning that looming U.S. tariffs could have severe consequences for exporters across the province, with some companies describing the potential impact as an existential threat.

The United States is preparing to impose tariffs of 50 per cent as an Aug. 19 deadline approaches, leaving businesses that rely heavily on American customers uncertain about whether they can continue operating at current levels.

“It poses an existential threat,” said Blaine Maryniuk, co-founder of West Coast Walls.

Maryniuk’s company manufactures wallpaper, stickers and decals, with between 25 and 50 per cent of its monthly sales going to customers in the United States.

“I think about it every day,” he said.

The growing concern among B.C. businesses comes as Prime Minister Mark Carney says trade negotiations with Washington have become “delicate” and “intense.”

Canada-U.S. Negotiations Intensify

Canada-U.S. Trade Minister Dominic LeBlanc and Canada’s chief trade negotiator, Janice Charette, have held a series of discussions with U.S. Trade Representative Jamieson Greer over the past three weeks.

Canadian officials are seeking to prevent the planned Section 338 tariffs while also attempting to reduce existing Section 232 tariffs affecting industrial products such as steel, aluminum, automobiles and lumber.

The negotiations could involve Canadian concessions in exchange for reductions or exemptions from U.S. tariffs.

The United States says its trade measures are partly a response to what it considers discriminatory Canadian policies affecting American automobile, dairy and alcohol producers.

Among Washington’s concerns is the removal of U.S. liquor products from shelves at provincially operated stores.

Wood Products Sector Faces Major Exposure

The latest proposed tariffs include wood products, leaving British Columbia particularly exposed because of the province’s large forestry and manufacturing industries.

Kelly Marciniw, a board member with the B.C. Log & Timber Building Industry Association, said businesses are already preparing for the possibility of layoffs and significant disruption.

“There’s businesses that are going to be doing layoffs — unknown if they’re going to be able to survive,” Marciniw said.

She added that tariffs create challenges beyond the direct financial cost.

“More paperwork, more tracking — it’s not even just the cost aspect of tariffs, it’s all the administration and the uncertainty.”

Richmond Plywood Could Stop U.S. Sales

Bhavjeet Thandi, chief financial officer of Richmond Plywood, said approximately 20 per cent of the company’s products are currently sold in the United States.

If the proposed tariffs take effect, he said those exports could effectively stop immediately.

“If these tariffs go through, that means Richmond Plywood will not be doing any more sales to the U.S. pretty much overnight,” Thandi said.

“There will be a significant impact to our bottom line.”

The uncertainty is also affecting companies far beyond the forestry sector.

More Than $1.5B in Abbotsford Exports at Risk

Alex Mitchell, CEO of the Abbotsford Chamber of Commerce, said more than 300 businesses in the city export goods to the United States.

Together, those businesses account for approximately $1.5 billion in annual exports.

Mitchell said some Abbotsford exporters rely on the U.S. market for as much as 90 per cent of their business.

“When there's this constantly changing tariff landscape, it's very challenging for customers and suppliers to continue to maintain those excellent trading relationships,” she said.

The unpredictability surrounding tariff rates and deadlines can make it difficult for companies to set prices, negotiate contracts and make long-term investment decisions.

Businesses Await Outcome of Talks

Carney and U.S. President Donald Trump spoke by phone Monday afternoon, according to a spokesperson for the prime minister.

No further details about the conversation were provided.

With the Aug. 19 deadline approaching, businesses across British Columbia are now waiting to see whether Canadian and U.S. negotiators can reach an agreement before the new tariffs take effect.

For companies heavily dependent on American customers, the uncertainty has already taken a toll.

“It actually has been overwhelming,” Maryniuk said.

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