New U.S. tariffs on Canadian goods are creating uncertainty for some Filipino-Canadian business owners, despite limited direct impacts so far.
The United States imposed 50 per cent tariffs on a new list of Canadian products on Aug. 22 after trade negotiations between the two countries broke down.
Canada responded by announcing counter-tariffs on $27.6 billion worth of U.S. goods, scheduled to take effect Sept. 8.
Von Canton, president of the Philippine Chamber of Commerce-Toronto (PCCT), said there is a growing sense of uncertainty among some Filipino-Canadian business owners, particularly those connected to cross-border trade.
“Small and medium-sized businesses are especially vulnerable because they have less capacity to absorb these additional costs,” Canton said.
Even businesses that do not directly export to the U.S. could eventually feel the effects.
Canton said some businesses rely on equipment, packaging, ingredients, transportation and other products connected to the Canada-U.S. supply chain.
“When tariffs increase costs anywhere along that chain, those expenses are often passed on to small businesses and, eventually, to consumers,” he said.
However, Canton said most Filipino-Canadian businesses are not directly affected by the dispute because many operate in service and technology sectors.
Businesses selling physical goods may also source products from the Philippines or other international markets instead of the U.S., limiting their direct exposure to American tariffs.
So far, PCCT has not heard of significant changes among its members.
Canton said members have not reported major cost increases, supplier changes, delayed investments or other direct effects because of the current trade uncertainty.
The chamber is continuing to monitor the situation.
The trade dispute comes as Filipinos maintain a significant presence in Canada’s workforce and small-business community.
More than 957,000 people reported being Filipino in the 2021 census, making Filipinos the fourth-largest racialized population in Canada, according to a Statistics Canada study released in June.
Among Filipinos aged 25 to 54, the employment rate was 84.3 per cent in 2021.
Statistics Canada also found 27.5 per cent of employed Filipinos in that age group worked in sales and service occupations, while 10.1 per cent worked in manufacturing and utilities.
At the national level, the Canadian Federation of Independent Business (CFIB) has warned small exporters about the effects of the trade dispute.
A CFIB survey conducted from July 28 to Aug. 6 found 40 per cent of small Canadian businesses exporting to the U.S. expected to have products affected by the proposed tariffs.
Among exporters surveyed, 93 per cent expressed some level of concern, while 66 per cent said they were very or extremely concerned.
Ottawa has since announced $7.5 billion in new and expanded support for Canadian workers and businesses affected by the tariffs.
The measures include an additional $1.5 billion for the Regional Tariff Response Initiative to support small and medium-sized businesses and $500 million in additional liquidity through the Business Development Bank of Canada.
Canton said it remains unclear how useful those programs will be for Filipino-Canadian businesses.
“It is too early to determine whether the support will be accessible and sufficient,” he said.
“We hope the programs will be easy to access and responsive to the needs of Filipino-Canadian small businesses.”
While the dispute presents risks, Canton said it could also push Filipino-Canadian entrepreneurs to reconsider where they buy their products and supplies.
He said businesses could reduce their dependence on the U.S. by buying more Canadian products and looking toward the Philippines and other international markets.
For business owners concerned about the months ahead, Canton recommended reviewing their supply chains and identifying products or equipment originating in the U.S.
“Monitor costs closely, maintain sufficient cash flow, and avoid unnecessary price increases,” he said.
“Most importantly, stay informed about government support programs and connect with organizations like PCCT for updates and new business opportunities.”
Luis Miguel De Castro is a Changing Narratives Fund-Local Journalism Initiative reporter at Mabuhay Canada and a journalism graduate at Humber Polytechnic in Toronto. Originally from the Philippines, he is passionate about community storytelling, multimedia journalism, and amplifying Filipino voices through meaningful local coverage.
