Canadian businesses and industry leaders are preparing for the impact of newly imposed 50 per cent U.S. tariffs, hoping for timely domestic assistance. Prime Minister Mark Carney summoned his negotiation team back to Ottawa on Friday night following the breakdown of trade talks due to what he described as “unreasonable” demands from the U.S.
With negotiators no longer engaging, U.S. President Donald Trump’s threatened 50 per cent tariffs are now in effect, covering various Canadian products like wood furniture, cement, plywood, and wine. Ron Kubek, the owner of Lightning Rock Winery in B.C., managed to deliver a $20,000 order to Washington state just before the tariffs took effect, marking his final shipment to the U.S. for now.
Kathleen Chapman, president of aVenco, a Canadian parchment baking paper manufacturer, anticipates a significant impact on her Bowmanville, Ont.-based business as 30 to 40 per cent of her products are exported to the U.S. The ongoing trade war has instilled uncertainty among her American customers, hindering business planning and future prospects.
The newly imposed tariffs cover approximately $28 billion worth of Canadian exports, affecting about five per cent of goods shipped to the U.S. According to an estimate by Oxford Economics, manufacturers producing items like plastic, chemicals, cement, and concrete, primarily located in Quebec and Ontario, are expected to bear the brunt of the tariffs.
Dennis Darby, president of Canadian Manufacturers and Exporters (CME), expressed concerns over the detrimental impact on manufacturers, especially those already facing sectoral tariffs on steel, aluminum, lumber, and autos for over a year. The new 50 per cent duties are poised to exacerbate the challenges faced by these businesses, potentially leading to job losses and decreased exports to the U.S.
Economist Trevor Tombe projects around 87,000 job losses nationwide due to the new tariffs, with industries like agriculture, textiles, electronics, furniture, and plastics manufacturing being most affected. The indirect repercussions on sectors such as warehousing and trucking could amplify the geographical scope of the job losses, with Alberta expected to witness approximately 9,000 job cuts.
Ron Kubek is concerned about the potential impact of Canada’s retaliatory tariffs on his winery, as certain essential materials like glass, screwtops, and cardboard packaging are sourced from the U.S. He emphasizes the importance of government support in removing barriers to interprovincial alcohol trade to aid businesses like his amid the escalating trade tensions.
Small and medium-sized businesses, represented by Dan Kelly of the Canadian Federation of Independent Business (CFIB), express hope for effective support programs in light of past programs that failed to aid small businesses adequately. The looming 50 per cent tariffs pose a significant threat to these businesses, urging swift and substantial government assistance to mitigate the adverse effects.
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