Today in Global Small Business: What You Need to Know About the Canada-U.S. Trade War

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What's affecting me, my clients, my colleagues and other global small business owners:

• Canada suspended trade negotiations, triggering President Trump’s 50 percent tariffs on a range of Canadian goods. Mark Carney said he would retaliate “dollar for dollar.”
• The lists of hundreds of goods from Canada subject to new 50 percent tariffs from the United States are long and seemingly organized at random.
• U.S., Canada spiral toward a trade war.
• Quote of the week: “We can chart a new course by building Canada strong at home and diversifying our trading relationships abroad." – Prime Minister Carney of Canada
• As Canada readies retaliatory tariffs, Mark Carney says his nation is 'at war' with U.S.
• Canada says it has come under economic attack from the U.S.

Note:  The Global Small Business Blog has been in operation since 2004 and is ranked number one in the world for entrepreneurs and small businesses interested in going global.  As of May, 2026, we average between 700,000-900,000 readers a month.  Thank you for your engagement!    

Dear U.S.A. Government, Please Return the $160 Billion ASAP

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The government must return about $160 billion, plus interest, collected from duties deemed illegal and potentially more if it loses a related tariff case.

The money is reserved largely for businesses that imported goods, not for American families, though both have faced rising costs as a result of Mr. Trump’s trade war. 

The refund process comes at a difficult political moment for Mr. Trump, who arrived in China on Wednesday, 5/13/26, for high-stakes trade talks. Just last week, a panel of federal judges found that the president broke the law when he replaced his illegal duties with a 10 percent tax on nearly all imports.

Customs officials indicated in a court filing on Tuesday that they had taken steps toward sending billions of dollars in additional, approved refunds to the Treasury Department for payment. The Trump administration has said it is still working to expand its system for processing refund requests.

Note:  The Global Small Business Blog has been in operation since 2004 and is ranked number one in the world for entrepreneurs and small businesses interested in going global.  As of February 1, 2026, we have more than 900,000 readers on a monthly basis.

Tariff Stacking?

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When U.S. President Donald Trump adds a new tariff the old ones don't go away. Some companies will pay far more because of a phenomenon called tariff stacking, the latest complication for U.S. importers trying to navigate Trump's on-again, off-again trade war.

The reality for many U.S. businesses is that their tariff bills are often far higher than the headline number touted in trade talks.

Tariff stacking applies to any country exporting to the U.S., but the most extreme cases tend to be with China, where the U.S. has accumulated a long list of sometimes hefty existing tariffs, implemented under different provisions of U.S. trade law.

Read more here. 

Today in Global Small Business: Biggest Threat to Success is Overthinking

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What's affecting me, my clients, my colleagues and other global small business owners:

• Overthinking often slows or even stalls progress by causing muddy thinking and overwhelm. It's aimed at preventing mistakes but overthinking itself becomes a bigger threat to success than mistakes.
• Americans across the country are remembering George Floyd five years after he was killed by police, with special gatherings in the city where he grew up and the one where he died.
• Why the Supreme Court is handing over more and more power to Trump.
• Quote of the week:  “Everything I did in my life that was worthwhile, I caught hell for.” – Earl Warren
• The trade war has turned a spotlight on the artisanal clusters behind glamorous goods, inviting fresh scrutiny of one of the industry’s key selling points.
• Remember the true meaning of Memorial Day.

Tariffs Disrupt Trade

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Tariffs disrupt trade between countries by raising taxes on imported goods, and those new costs are often passed on to consumers through higher prices. Tariffs are considered by many economists a political cudgel — sometimes used in a trade war — and not an efficient framework for international trade.

Trump is set to go ahead with tariffs on America’s biggest trading partners on Tuesday, 3/4/25 imposing 25% tariffs on goods from Canada and Mexico. Trump on Monday also raised tariffs implemented on China from 10% to 20%.

As Warren Buffett would ask, "And then what?" 

Today in Global Small Business: And the Tariffs Begin

 

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What's affecting me, my clients, my colleagues and other global small business owners:

• Canada and Mexico move to retaliate on Trump tariff orders (might require subscription).
• Trump puts tariffs on Canada, Mexico and China, spurring trade war as North American allies respond.
• Quote of the week: “Make no mistake, if Trump imposed these tariffs, it would represent a significant negative shock to the U.S. economy. It would raise costs for businesses, make American production less competitive internationally, and raise prices even more for consumers who’ve recently suffered through the pandemic and the highest inflation in generations." – Stephen Tapp, Chief Economist, Canadian Chamber of Commerce (11/28/24)
• The $1.4 trillion gamble with the economy and prices.
• A ‘pathological obsession with tariffs’: Chris Hayes unveils scariest part of Trump’s trade move.
• Mexico vows retaliation to Trump tariffs without detailing targets.

What Are Small Business Owners Doing to Minimize the Impact of the China-US Trade War?

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According to CNBC's Small Business Playbook, here are the facts:

• The China tariffs have increased the cost of doing business for more than one third, or 37%, of small businesses across the U.S.
• In a recent survey by new survey by BizBuySell, 43% of small business owners said a 25% increase on tariffs in the U.S.–China trade war will increase their business costs.
• Of those, 64% said they would deal with the higher costs by raising prices and 65% of those surveyed said they would consider switching to suppliers outside of China.

How can you avoid being a victim in the escalating trade war? Read on.