Kelowna: The Kelowna Chamber of Commerce, alongside Chamber colleagues across the country, is deeply concerned over the collapse of trade talks and the impact of both new and continuing tariffs, which raise costs for businesses and consumers on both sides of the border. This latest round of tariffs imposed by the United States unfairly targets many British Columbia businesses and threatens jobs, investment and economic growth throughout the province.
Neighbouring provinces are also feeling this punch, from the Prairies across to Ontario, Quebec and the Maritimes.
Given BC’s forestry industry, the hit we take here will be significant.
Monday, the President of the United States has predicted that he will add additional tariff targets January 1, 2027, including cars, trucks (large and small), automotive parts, and steel.
The response from Canadians has been overwhelmingly positive for walking away from a bad deal, characterized as worse than no deal. The months ahead, however, will be hard for business.
The best outcome for both Canada and the United States is a durable agreement that provides certainty for businesses, workers and investors. At the same time, this is a reminder that Canada cannot afford to wait. Governments must move urgently to reduce internal trade barriers, build trade-enabling infrastructure, advance major resource and industrial projects, diversify export markets, and do everything they can to strengthen Canada’s competitiveness.
Canada’s trade export percentage to the US had dropped to 72% from April 2025 to spring 2026, and dropped another few percentage points in the past few months.
Trade talks between Canada and the US broke down Friday night August 21st, and as of Saturday morning, 50 percent tariffs went into effect on roughly $27 billion CAD of Canadian goods, with 14% of our exports to the US now affected – higher than any other province in the country. Retaliatory tariffs are expected to be announced today by Canada.
A note about GDP
In the first quarter 2026, Canada-US trade in goods and services was $1.9 billion, or 0.6% lower than the same period 2024. Canada exports to the US declined 1.6% ($2.8 billion).
Statistics Canada will report its figures for gross domestic product for June and the second quarter as a whole on Friday August 28th. The agency's preliminary estimate for June suggested growth of 0.2% for the month and a 3.4% annualized gain in the second quarter.
Small steps the local Chamber is taking
On Tuesday November 3, the Kelowna Chamber is co-hosting a Defence Procurement Forum, featuring panelists from the defence industry and from government, and networking for businesses interested in and/or involved in defence procurement strategy. Local and national experts will be on hand to share insights and knowledge with local businesses. The event will be held at the Coast Capri Hotel, Kelowna.
The Kelowna Chamber of Commerce will welcome Canada’s Chief Trade Commissioner, Sara Wilshaw to Kelowna on Tuesday November 10th for a half-day event including trade panels, and updates on the state of play, trade- and tariff-wise, at that time. The event will be held at Kelowna’s Innovation Centre. We are pleased to host this high-profile expert from Global Affairs Canada along with moderated discussions for our business community.