U.S. tariffs pause elicits relief, frustration in Manitoba

Fifty per cent tariffs weren’t the only thing paused in the Canada-U.S. trade dispute.

Optimus Gear’s United States-bound shipments of dog harnesses, collars and leashes have stopped temporarily.

The Grande Pointe manufacturer sells roughly 35 per cent of its goods south of the international border. Roughly a week ago, it pressed pause: inbound tariffs would be too harmful to business, said Andrew Churley, the company’s co-founder.

“We can only communicate so much online,” Churley said. “I’m finding more and more Americans especially, they don’t understand the tariffs.

“The uncertainty … it’s not worth the gamble.”

U.S. President Donald Trump said Tuesday night he’d pause his threatened 50 per cent tariffs, meant to impact roughly $28-billion worth of Canadian exports.

The tariffs were set to appear Wednesday. Instead, American and Canadian administrations said they had reached a trade deal. Few details were public Wednesday afternoon.

Dog leashes join a wide range of Canadian products that had been targeted by the U.S. But even Wednesday’s break isn’t enough for Optimus Gear to feel comfortable selling south, Churley said.

Optimus Gear left several $300-plus harnesses at the border and logged cancelled orders when the Trump administration removed the de minimis exemption last year, Churley said. The exemption had allowed for free passage of goods valued US$800 or less.

“The uncertainty … it’s not worth the gamble.”

“I spent about a full week just making sure every last document, every last line item, everything got super well-classified,” Churley said.

After filing more paperwork, Optimus Gear was back to tariff-free treatment; it’s Canada-United States-Mexico Agreement compliant.

However, that trade agreement wouldn’t shield goods from the new 50 per cent tariffs.

“It’s definitely hurting us, in terms of the financial,” Churley said of pausing U.S. sales.

Optimus Gear, which previously had a division called Crash Safe Dog, has been contacting long-time Canadian clients for support. It rushed U.S. orders ahead of Aug. 13 and will take American customers when a concrete deal is clear, Churley said.

“What we’d like to see is that there’s some sort of a resolution … that ideally tariffs are off the table entirely,” said Chuck Davidson, president of the Manitoba Chambers of Commerce. “That’s probably not as realistic. There’s going to be some concessions.”

At minimum, shielding CUSMA-compliant businesses from tariffs would be “ideal,” Davidson said.

Loren Remillard, president of the Winnipeg Chamber of Commerce, had scheduled a meeting with a U.S. counterpart Wednesday to discuss the tentative trade agreement.

“If there’s agreement on all sides of the border, let’s make sure we’re delivering that message in unity with force.”

Remillard said he planned the conversation through the Canadian Global Cities Council, a coalition of the country’s largest urban chambers of commerce. He’s chair of the council; he’d meet with the head of the U.S. version.

“(It’s) how can we better work together to emphasize this is not a Canada concern — this is a North American concern that we potentially will not renew CUSMA,” Remillard said. “If there’s agreement on all sides of the border, let’s make sure we’re delivering that message in unity with force.”

Canadian exports to the U.S. log an average effective tariff rate of three per cent because the levies have impacted a relatively small portion of total trade, RBC reported last month.

“Every manufacturer is feeling indirect pain of the trade conflict,” said Alan Arcand, the Canadian Manufacturers & Exporter’s chief economist. “One of the biggest challenges of this whole conflict has been the uncertainty.”

Earth and Hide, a leather goods maker in Manitoba, has shelved its U.S. expansion plans. Company founder Chuck Allen said he’s still determining how he’d address 50 per cent tariffs, when shipping his bags from Niverville to American clientele.

“It’s frustrating for sure,” Allen said. “Doing markets down (in the U.S.) … I get 10 times more potential customers down there.”

Some Manitoba businesses have bought U.S. companies or reoriented their supply chains away from the country as a result of the current trade climate, Remillard said.

“We should all be appreciative that today we’re not staring down 50 per cent tariffs.”

“Devil’s in the details,” he said of the yet-to-be-detailed new trade agreement. “We should all be appreciative that today we’re not staring down 50 per cent tariffs. That’s a good day for Canada.”

Canada’s economy grew 0.3 per cent year-over-year in May. The country has had several promising economic figures amid the U.S. turmoil, Remillard said.

Foreign investors bought $40.8 billion of Canadian securities in June. It ended an “unprecedented” $100.6 billion investment in the second quarter of 2026, Statistics Canada reported.

“(This is) signalling that Canada is a preferred investment destination compared to Europe, compared to the U.S.,” said Melanie O’Gorman, chair of the University of Winnipeg’s economics department.

“Our stability, our leadership in (Prime Minister Mark) Carney in particular and the premiers is gaining international attention.”

Regardless of a trade deal, in the long-term, Manitoba businesses will export to more countries and lessen reliance on the United States, O’Gorman said.

gabrielle.piche@winnipegfreepress.com