A proposed U.S. tariff package targeting billions of dollars worth of Canadian exports is raising concerns among businesses, with some of the products on the list leaving industry observers puzzled.
The measures, threatened by U.S. President Donald Trump, would impose a 50 per cent tariff on hundreds of Canadian product categories valued at roughly $20 billion.
While some targets, including alcohol and dairy products, are familiar flashpoints in Canada-U.S. trade disputes, others appear less obvious. Items listed for potential tariffs include wigs, false beards, false eyebrows, horse hair, honey, candles, essential oils, fishing rods and dog leashes.
Montreal wigmaker Ailsa Macmillan, whose custom creations are sold to actors and theatre companies across North America, said the proposed duties could significantly affect her business. Some of her products sell for between $10,000 and $15,000, making a 50 per cent tariff a substantial added cost for U.S. customers.
Trade experts say many of the products on the list are finished goods that can be more easily sourced from American suppliers. International trade lawyer John Boscariol said the U.S. is likely trying to avoid measures that would harm its own manufacturers.
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Retail Council of Canada CEO Kim Furlong said smaller independent retailers that ship directly to American customers could face a greater impact than larger companies with more flexible supply chains.
Despite the uncertainty, some business owners hope the trade tensions could encourage more domestic investment and create opportunities for Canadian suppliers and skilled workers.
The proposed tariffs are the latest development in an ongoing trade dispute that continues to create uncertainty for exporters on both sides of the border.