By James Matthews
Many business communities are circling their wagons in anticipation of an economic war with Canada’s largest trading partner.
Industries and business groups, municipalities and communities are bracing for possible financial impacts. The wariness extends even to Haliburton County.
The expected salvos: A barrage of tariffs, one country answering the other.
United States President Donald Trump dangled the threat of 25 per cent tariffs on imported goods from Canada. Except for Canadian energy resources. He hit the electricity that New York State depends on with a 10 per cent tariff.
So Canada unveiled the treat of retaliatory tariffs on products worth $155 billion from the United States. Tariffs threatened by both countries were delayed for 30 days at the beginning of February.
Tariffs are taxes on goods paid by importers. So Canadian companies who sell their wares to industry and consumers south of the border would pay. American companies selling to Canadian markets would pay the tariffs imposed by Canada.
Money generated by the import fee would go to the respective government that imposed it.
That is, if the stalemate is broken and the tariffs are imposed.
American producers of poultry, meat products in various forms, pork, dairy products, natural honey, and some fruits and vegetables could face higher import fees to the Canadian marketplace.
Spices and various grains and rice are on the tariff list. Wine, fermented beverages, and tobacco products from the U.S. may have increased tariffs. Fabrics, plastics, and metals are on the list. Makeup and some other beauty products are there, too, as are materials and tools necessary for manufacturing and construction.
Patti Tallman, the executive director at the Haliburton County Development Corporation, said the possible monetary ruckus at the border is a concern for the local economy and how it could impact the community as a whole.
“The local businesses that currently bring goods from the U.S. markets are having to look at things differently,” she said.
The Haliburton Highlands Chamber of Commerce, along with the Ontario Chamber of Commerce, is conducting a survey to understand the potential impact of U.S. and Canadian tariffs on the county’s business community.
Amanda Conn, Haliburton Highlands Chamber of Commerce’s executive director, said survey responses will help advocate for policies and resources that support Ontario’s business community.
“A 30-day delay means more time for Canadian businesses and governments to drive home the point that tariffs make no sense between the two closest allies the world has ever known,” Conn said in an email.
Candace Laing, the national chamber’s president and CEO, said the standoff makes it clear that perpetual uncertainty will continue.
“Businesses and investors already feel on shaky ground with the 30-day tariff pause, and now our steel and aluminum industries are first into the fire,” she said.
Stakeholders in the construction industry, interior design and decor, retailers, grocery stores all import something from south of the border.
“You may see some stockpile products and critical materials in advance of the tariffs or work with existing U.S. suppliers to absorb some of the tariff costs or explore alternative pricing strategies,” Tallman said.
Ultimately, she said tariffs could increase costs. As such, businesses will have to consider whether to absorb the extra costs, pass them on to the customer, or adjust their business model.
Tallman said this is a time to consider new markets and to source materials from Canadian suppliers.
“But, more importantly, how can we look to support our local business community to support our own businesses as much as possible?” she said. “It not only will impact our businesses but will have a trickle effect on everyone buying our day-to-day goods and services.”
