Cambridge business says tariff delay brings relief but 'durable agreement' still needed

John Dalusong · CBC News

· Posted: Aug 19, 2026 1:11 PM EDT | Last Updated: August 19

While new 50 per cent U.S. tariffs may have been paused for now, a local business says the delay only brings temporary relief.

"For a company like ours, a 50 per cent tariff would have represented a very significant commercial barrier to our largest market," Matthew Berger, vice president of MW Canada, told CBC News. 

"What we really need is a durable agreement, something that's going to give us confidence, something that gives us the ability to plan about what the rules are going to be going forward."

MW Canada is a textile manufacturer based in Cambridge, Ont. The business started in apparel, upholstery and blanket fabrics in the 1960s, but now mainly serves the window covering and health care industries. 

U.S. President Donald Trump announced the pause on the levies less than two hours before the tariff deadline saying "Canada and the U.S.A., subject to the finalization of documents, have a deal."

Prime Minister Mark Carney released his own statement an hour later saying, "substantial progress has been made, although there is important work still to be done."

The tariff deadline has been moved to Saturday, with negotiations ongoing between the two sides.

LISTEN | Matthew Berger joins The Morning Edition to talk tariffs:

• Video

  Trump pauses 50% tariffs, saying new trade deal reached

• Manitoba business owners feeling the sting of U.S. tariff uncertainty

'Simply not enough demand' locally

Textiles are under the Canada-U.S.-Mexico Agreement (CUSMA), a trade deal that was set in motion back in 2020 which protected most traded products from tariffs.

With Trump's 50 per cent tariff threat however, CUSMA-compliant goods are not going to be exempt. 

This is a major threat to MW Canada, with 95 per cent of its products exported out of the country and "a significant portion" going to the U.S., said MW Canada's vice president.

Berger said manufacturing companies, especially specialized ones like MW Canada, don't have the capability to just "flip the switch" and start producing another product when the market goes down. 

"We operate on these multi-year program cycles and it could take years to design, develop tests and ultimately qualify fabric into these programs," he said. 

"Diversification is part of the strategy of doing more domestic business. Unfortunately, there's simply not enough demand in the country to run a large-scale operation around for our type of product."

WATCH | Michigan business owner on the tariff threatens his family business:

Many U.S. businesses rely on Canadian products, but with the looming 50 per cent tariffs, some are left with no choice but to break good-faith relationships with their Canadian partners to save their finances.

Berger said he would do the same if he was one of their U.S. customers. 

"Any good risk manager will begin looking at alternatives," he said. "Even the risk or the potential for a tariff is enough for someone to question their supply chain."

"Ultimately, a tariff like this is going to incentivize our American customers to consider bringing in more offshore goods [from Europe and Asia]. If that's the case, you have to raise the question of who does this tariff really, really affect? Who does it really benefit?"

WATCH | Feds announce $40-million investment in Waterloo and Brant regions:

What the government can do

Back in July, the federal government made a $40.5 million investment in tech businesses in and around Waterloo region. The funding was split between 23 businesses in Waterloo and Brant regions. 

One of the local recipients was MW Canada. 

"The province has been great with programs that are available," Berger said about government help.

But he thinks more should be done, especially when it comes to public procurement. He says public procurement has "looked at lowest acquisition cost as the primary driver for the decisions."

"What's happened over the years, especially in textile, is that overseas competitors have come in and eaten away at this market and we're left with very little capability," he explained.

"And so moving more public procurement to Canadian companies, to Ontario-based companies would go a long way in creating demand for the businesses here and retaining the capability and the skills and the talent that's needed to produce important products."

The Ontario government has introduced the Buy Ontario act in November of last year, which would require public sector organizations to prioritize in-province goods, services and vendors.

The move was said to help keep "public-sector dollars in Ontario and across Canada."

With the current situation, Berger said he will have to be patient.

"As time goes on, we evaluate the situation. We evaluate the news as it comes to us," he said.

"But at the moment … we're in this wait-and-see mode."