Canada-US Deal Deadline Delayed: Manufacturers Face 50% Tariffs

Canadian manufacturers are holding their breath as they await a deal between Canada and the US to avoid hefty tariffs. President Donald Trump has delayed a deadline to finalize an agreement until Friday, prolonging uncertainty that's weighing on Canada's economy.

Companies like Canadel Inc., which sells about 70% of its wood furniture at US retailers such as La-Z-Boy Inc. and Raymour & Flanigan Furniture Co., are already feeling the pinch. They've been hit with a 25% tariff on some of their merchandise last year.

The looming threat is even more daunting, with a 50% tariff hanging over them unless a deal is reached. This could significantly impact Canadian companies that rely heavily on exports to the US.