( CNN ) -- Hockey or debt ceiling ? Watching both are Canadian national pastimes these days , especially for businessmen such as Marty Cutler . Except , the political show comes with a big dose of concern . Like many Canadians , Cutler , owner of Fairmount Books in Toronto , said he feels quiet pride from closely following American politics and knowing his country is generally free of the acerbic partisan wrangling of its powerhouse southern neighbor . But he fears a U.S. default , if it were to occur , would be sure to hit home hard . `` The whole thing drives us a little crazy , '' he said . `` You 're the elephant and we 're the mouse : when you roll over we can get crushed . '' More than 50 % of Fairmount Books ' business is in the United States . If Washington ca n't find a way to break the debt ceiling impasse , folks like Cutler could pay a heavy price . Nobody can predict the precise global consequences of a U.S. default , but several economic experts said the ensuing panic could fall hard on Canada , the United States ' largest trading partner . A default would likely lead to a downgrading of America 's stellar AAA-credit rating , which could send interest rates -- the cost of borrowing -- skyward . In a worst-case scenario , this would grind bank lending to a halt , slowing economic activity and plunging the United States -- where Canada does 75 % of its trading -- back into recession , according to Jack Mintz , a professor of public policy at the University of Calgary . With approximately 20 % of world GDP comprised in America , the international business community has a lot riding on the debt negotiations , Mintz said . But Canadian businessmen such as John Larsen , whose business is also heavily dependent on American customers , may have more to lose than most . `` It would be devastating , no doubt about it , '' said Larsen , chief executive officer Larsen & Shaw , a company that makes hinges in Walkerton , Ontario . Roughly one in five jobs in Canada is dependent on the United States , said Avery Shenfeld , chief economist of the Canadian Imperial Bank of Commerce . `` Any material change to the U.S. economy is quickly felt on this side of the border , '' he said . `` There is a sense of pride in Canada 's regulatory , financial and political systems ... but Canadians ca n't afford to laugh off the troubles in the U.S. , '' he said . `` It does n't take too long for an economic weakness south of the border to send our own economy into trouble . '' For this reason , Catherine Swift , president of Canadian Federation of Independent Business , said her organization has intently followed the debt ceiling talks . The uncertainty has even driven up the value of the Canadian dollar . `` That 's going to kick the pants out of ( Canadian ) exporters , '' she said . `` Some are saying that Canada would become more of a safe haven for investments , but that 's a financial market thing . In terms of the real economy , this is bad news . '' Canada is already feeling the reverberations . The Toronto Stock Exchange fell more than 450 points this week and reached a one-month low Friday amid the uncertainty surrounding the debt ceiling talks . Perhaps in an attempt to assuage worries , Canadian Finance Minister Jim Flaherty said this week that he was `` relatively confident '' the United States will raise the debt ceiling . But he warned that America 's broader deficit gap would remain a long-term problem that could hurt Canada as well . `` We 're a trading nation and it matters to us that our most important trading partner has their fiscal house in order , '' Flaherty said . Compared to the United States and Europe -- where several countries are saddled with deficit crises -- Canada is on a clear path to a balanced budget by 2014 , Flaherty said . `` Canada looks relatively good on the world stage , '' he said . Asked if Canada had contingency plans for a default , Flaherty said , `` What we are doing in Canada is what we 're able to do in Canada . '' Still , some Canadian business owners expressed frustration with what they called American fiscal recklessness and its impact on Canadians . `` I 'm not surprised , given the reputation of Americans to be arrogant , that they are once again in this crisis situation , '' said Megan Halprin , part-owner of Snowflake , a clothing retailer based in Vancouver that does about a quarter of its business in the United States . In her view , Americans `` seem to attract crises . '' Canadians , she said , are conservative . Whatever their nature , Canadian businessman ought to be paying close attention to the drama unfolding in Washington , said Don Atkinson of Atkinson Maple Syrup Supplies . A default , he said , would have a `` horrible ripple effect '' in Canada . But Atkinson was sure Canadians would survive a default of any magnitude . Chalk that up to old-fashioned principles . `` We pay down our debt , '' he said , `` and do n't buy based on credit , as you do in the United States . ''
Canadian businessmen fear a U.S. default would hit their country hard . Canada is the United States ' largest trading partner . Some Canadians are frustrated with Canadian fiscal policies . ` ` We pay our debt , '' many say about their homeland .