The Big Story The impact of Trump’s crusade to reset the world trading order
Feb 23, 2026
Dan Kelly, president of the Canadian Federation of Independent Business and SME advocate, discusses how renewed US tariffs are reshaping Canadian trade choices. He outlines which sectors face the biggest pain. He talks about small firms absorbing costs, diversifying markets, and what a patchwork CUSMA outcome might look like.
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Supreme Court Clipped Presidential Tariff Power
- The Supreme Court ruling limited presidential tariff power and preserved most KUSMA tariff-free trade.
- Dan Kelly notes goods covered by KUSMA remain tariff-free while sectoral national-security tariffs like steel and aluminum persist and still hurt SMEs.
15% Global Tariff Hits Only A Small Trade Slice
- Trump's new temporary global tariff (initially 10%, then 15%) narrows pain to a small share of Canadian exports while leaving majority of trade unaffected.
- Kelly estimates 75–80% of trade stays tariff-free, 10–15% faces existing sectoral levies, and ~5–10% sees reduced rates from 35% to 15%.
SMEs Skipped KUSMA Paperwork And Paid The Price
- Small and medium exporters often lacked resources to secure KUSMA compliance and therefore bore steep 35% tariffs.
- Kelly explains large firms can absorb compliance paperwork while many SMEs simply opted out due to the 'paper chase.'