How the US-Canada trade war is being felt on both sides of the border

Some businesses are adapting to find customers elsewhere. Matteo Sgaramella, who owns Toronto-based menswear clothing company Outclass, told the BBC he has started attending trunk shows in Paris instead of New York, helping him reach more customers in Europe."The reception has been amazing," he said, adding that some European stores are particularly enthused about supporting Canadian products due to the ongoing trade war with the US."We're kind of seen as the one country that's kind of standing up to the Americans right now," Sgaramella said.Other businesses, however, are struggling to diversify their trade, particularly in Ontario manufacturing sectors that are deeply integrated with the US.A recent report by the Canadian Chamber of Commerce pointed out three such regions in Ontario - Oshawa, London and Kitchener-Cambridge-Waterloo - as being particularly vulnerable."These cities remain heavily tied to the US market, while growth in exports outside the US has been limited or insufficient to offset broader weakness in trade activity and local economic conditions," the report said.While some businesses are lagging, foreign direct investment into Canada hit C$96.8 billion in 2025, th...