An international business consultant says Michigan businesses will be particularly hard hit by the escalating trade war between the United States and Canada.
On Tuesday, the Canadian government struck back at the Trump administration with retaliatory tariffs on about $20 billion worth of American goods, including steel, dairy products, appliances and farm equipment.
The announcement happened as the trade war between the once-friendly neighbors escalated sharply. The tension threatened one of the world’s largest trading relationships.
The new tariffs extended well beyond industrial goods, hitting everyday purchases such as seafood, cheese, clothing, cosmetics and toilet paper, with some facing duties as high as 50%.
Canada’s retaliation came after the Trump administration imposed 50% tariffs over the weekend on Canadian goods, following the collapse of trade negotiations.
Ashley Kalyn is the head of Business Development and an international trade consultant for Peacock Tariff Consulting. The company advises businesses on both sides of the border.
Kalyn said it will be difficult for many Michigan businesses to absorb these new tariffs.
"It almost feels like no business is safe,” said Kalyn. “Businesses cannot plan ahead regardless of industry right now because there is so much turmoil.”
Kalyn expects Michigan’s auto industry and some retailers will feel the brunt of the trade war between the U.S. and Canada.
She said she is advising her clients to be very careful to avoid tariff paperwork mistakes, which could result in massive fines from both governments.
