Trump holds firm, Republicans push back — Canada faces the consequences

Toronto, ON – October 10, 2026

Canada’s trade troubles are deepening. Washington remains divided, trade negotiations are stalled, and Canadian businesses face higher costs, lost sales, and growing uncertainty.

President Trump refuses to soften his trade position, while some Republicans now openly challenge tariffs on Canada. Meanwhile, Canadian businesses are making difficult decisions about jobs, investment and their future.

Here are this week’s major developments and what they mean for your business.

Trump, tariffs and CUSMA — what’s new?

• Trump holds firm: The President says the U.S. remains dissatisfied with Canada-U.S. trade arrangements and continues pressing for more American automobile manufacturing.
• CUSMA negotiations remain stalled: Officials continue communicating, but there is no confirmed breakthrough or comprehensive agreement.
• Republicans push back: Michigan Senate candidate Mike Rogers and other Republicans are calling for an end to the tariff dispute, citing rising costs and threats to jobs.
• New trade restrictions: Additional U.S. import restrictions affecting selected Canadian products have added to exporters’ concerns.
• U.S. midterm elections — November 3: Tariffs and the cost of living are becoming major campaign issues in key border states.

The message for Canadian businesses: Do not count on a quick resolution.

Canadian businesses and jobs — are we hurting?

The warning signs are becoming harder to ignore.

September employment figures reported by Statistics Canada show:

• 68,000 jobs lost nationally, following 42,000 in August.
• Manufacturing lost 13,000 jobs.
• Ontario lost 20,000 jobs, while Quebec and British Columbia also experienced significant employment declines.
• Businesses continue reporting rising costs, reduced orders, weaker margins and postponed investments.

Trade uncertainty is particularly challenging for manufacturing, automotive, steel, aluminum, construction, agriculture, transportation, retail and export-dependent businesses.

Not all employment losses are attributable to tariffs, but prolonged uncertainty is making business planning increasingly difficult.

Bank of Canada — will interest rates provide relief?

The Bank of Canada’s policy rate stands at 2.25%, with its next scheduled announcement on October 28.

Businesses are watching closely. Borrowing costs, inflation, energy prices and tariff-related expenses continue to affect cash flow and investment decisions.

Any future rate reduction could provide relief, but businesses should not depend on one.

What are Canadian governments doing?

Ottawa has announced $7.5 billion in additional and enhanced tariff-response support, including:

• $1.5 billion — Regional Tariff Response Initiative: Assistance for eligible tariff-affected businesses.
• $500 million — BDC Pivot to Grow: Financing support for businesses adjusting to trade disruptions.
• $2 billion — Canada Strong Diversification Fund: Support for eligible investments and diversification.
• $3.5 billion — Rapid Response Supports: Workforce retention, retraining and employment-related assistance.
• Large Enterprise Tariff Loan: Financing for qualifying larger businesses facing tariff-related pressures.

Across Canada, provinces and territories also have economic development, trade diversification, workforce training and business assistance initiatives. Ontario’s trade-response programs are among the options businesses should examine.

These are existing announced measures, not all new announcements from this week. Eligibility, application windows and available funding vary.

What should businesses do now?

Waiting for Washington is not a business strategy.

Canadian businesses should:

• Review tariff exposure, supply chains and operating costs.
• Investigate government grants, loans and other available assistance.
• Explore new Canadian and international customers.
• Examine workforce retention and training programs.
• Review financing, cash flow and expansion plans.
• Prepare for further changes to tariffs and CUSMA.

How GTA Strategies can help

GTA Strategies assists businesses across Canada with government relations, identifying and preparing funding applications, navigating government programs, procurement opportunities and business development.

We offer a complimentary, no-obligation introductory conference call, followed by preliminary research into applicable government programs and a second discussion, also at no charge.

Contact us to discuss your business challenges and opportunities.

Simply reply to this email, and our office will coordinate a convenient time.