'The trust is gone': Ontario business and labour look for new partners as U.S. trade war continues

The damage done by Donald Trump's chaotic tariff war has Ontario businesses looking for new trading partners and allies, in the midst of deep uncertainty caused by the conflict.

That's according to groups representing businesses and workers across the province, who say one of the most profound impacts of the U.S. president's scatter-shot approach has been to undermine decades of trust built between the two countries.

The uncertainty has meant businesses across the province are now planning with an eye to Trump's mercurial behaviour, said Ontario Chamber of Commerce CEO Daniel Tisch.

"The White House has shown itself to be unreliable, untrustworthy and uncoordinated," he said. "I think the worry is that even if we do get to a deal … there's no guarantee that later in his term, the president won't turn on us again." 

Trump has long been a proponent of tariffs as a way to raise revenue for the United States and re-shore manufacturing jobs. Since taking office in January he has threatened to impose 25 per cent tariffs on most Canadian goods, a move critics argue will dramatically increase prices for American consumers while hurting businesses on both sides of the border.

Trump also pushed ahead with some tariffs earlier this week, including sweeping 25 per cent charges on steel and aluminum.

Tisch said Trump's threats and subsequent backtracks on many of the tariffs have sowed seeds of doubt within many Canadian businesses. They're holding off investments, finding new trading partners outside of America and laying off workers. 

"You're already seeing Canadian businesses look for new partners in Europe, in Asia and Latin America, where we have trade agreements and we have countries that actually value the alliances with us," he said,

Tisch said the U.S. will remain Canada's largest trading partner, so stability must be achieved by renegotiating the U.S.-Mexico-Canada free trade agreement. 

"But at the same time, we need to ensure that we're never this vulnerable again, and that means diversifying trading relationships with other markets and building new alliances," he said.

Canadian ice cream company, Chapman's, told CBC News Networks earlier this week that it has already broken ties with some long-time U.S. suppliers because of rising costs. 

"It's unfortunate, some of these companies we've been doing business with for over 30 years, and if anything, we're incredibly loyal to these suppliers," Ashley Chapman, the company's chief operating officer, said in an interview with CBC's Heather Hiscox.

"It's devastating for both sides of the border."

Unifor National President Lana Payne said she thinks one of the early casualties of Trump's trade war has been a long-standing good relationship between the U.S. and Canada.