At this point, tariff updates are starting to feel like a recurring column. If you’ve read one, you’ve read twenty — and yet, each new round seems to up the ante. The latest move from U.S. President Donald Trump, raising tariffs on Canadian goods from 25% to 35%, is more than political theatre. For businesses in the Cowichan region, it lands with real weight.
When the executive order was signed on July 31, it sent a ripple through global markets. For Cowichan exporters, it sent a message: prepare to adjust, or risk being priced out.
Reading the Fine Print
The tariffs target a range of goods not fully protected under the Canada-United States-Mexico Agreement (CUSMA), including steel, aluminum, automotive parts, and value-added wood products. These are precisely the sectors where Cowichan’s small manufacturers and resource producers have found footing in U.S. markets.
The change is not just numeric. It signals a strategic shift. Trump’s rhetoric points to a transactional approach to trade relationships, even with long-standing allies. For Canadian producers, this means less predictability, more scrutiny, and higher costs.
Local Sectors in the Crosshairs
Cowichan’s economy is diverse, but several key sectors are exposed:
- Forestry firms, already navigating global softwood tensions, now face additional barriers shipping south.
- Light manufacturers producing components for U.S. clients may be forced to renegotiate contracts or absorb new costs.
- Agri-food producers whose products do not qualify under CUSMA rules could lose access to key markets overnight.
For small and mid-sized businesses, especially those without legal or logistics teams, this is not a minor adjustment. It is a structural challenge.
Canada’s Counterbalance
In response, the federal government has pledged $1.2 billion to support affected industries. This includes loan guarantees and funding for market diversification. British Columbia’s Economic Stabilization (Tariff Response) Act allows the province to cancel contracts with U.S. vendors as a form of countermeasure.
These policies may help with immediate pressures, but they do little to restore predictability. Many business owners are now operating in a wait-and-watch posture, unsure if a contract signed today will be viable six months from now.
A Cowichan Pivot
Resilience in this climate will require more than damage control. Some businesses are already taking steps:
- Revisiting CUSMA compliance, with the help of Export Navigator, to ensure product classifications are airtight.
- Exploring non-U.S. markets, including Asia-Pacific and European buyers with the help of Community Futures Cowichan and Export Navigator.
- Leaning into local procurement, where demand for B.C.-made goods remains strong.
For companies with a clear value proposition and flexibility in their operations, this moment may create new openings. As supply chains shift globally, Cowichan’s emphasis on craft, sustainability, and regional identity should be considered a strength rather than just a niche.
New Federal Measures Offer Hope for Exporters
On August 5, 2025, Prime Minister Mark Carney unveiled a national strategy to support and transform Canada’s softwood lumber sector in response to rising U.S. tariffs. The announcement marks a broader shift from trade reliance on the United States toward a more diversified and resilient economic model rooted in domestic production and expanded international market access.
For Cowichan, where forestry firms are already navigating the impact of these tariffs, the federal measures provide a multi-faceted response:
- $700 million in loan guarantees to help softwood lumber businesses maintain operations and restructure as needed.
- $500 million for product and market diversification, with a focus on increasing domestic processing, supporting Indigenous-led forestry businesses, and boosting value-added production.
- A new “Build Canadian” procurement approach that prioritizes Canadian materials in federal housing and infrastructure projects.
- A dedicated initiative to expand exports of Canadian wood products into Asian, European, and other fast-growing international markets.
- $50 million for upskilling, reskilling, and income support for more than 6,000 workers affected by the softwood lumber dispute.
These measures go beyond short-term relief. They offer a long-term strategy to strengthen the sector through innovation, diversification, and strategic investment. For Cowichan businesses, the path forward may lie in aligning with this federal direction. Community Futures Cowichan and Export Navigator remain valuable partners for accessing support and identifying new market opportunities.
In a shifting global trade environment, the message is clear: build Canadian, strengthen relationships, and stay adaptive to seize new opportunities.
