Derek Friesen, the owner of PhiBer Manufacturing Inc. in Manitoba, expressed how the recent announcement of Canadian retaliatory tariffs on $27.6 billion worth of U.S. goods has directly impacted his agricultural equipment manufacturing business. While his company mostly avoided the effects of the Canada-U.S. trade war, certain products, like the frames imported from Iowa for their dash trailers used in agriculture, will now be subject to new retaliatory tariffs starting on Sept. 8.
Friesen highlighted the potential consequences of these tariffs, emphasizing that the increased costs will likely result in a significant rise in the prices of their trailers. He expressed concerns about the economic feasibility of continuing to buy and sell these trailers, which constitute a substantial portion of his company’s sales.
The targeted list of newly tariffed items includes a range of products facing tariffs of 15, 25, or 50 percent, such as seafood, paper products, furniture, apparel, tools, and motorcycles. Bradley Saunders, an economist, noted that the selection of goods for tariffs appears strategic, with a focus on items that have domestic alternatives to minimize the impact on Canadian consumers.
Despite the negative implications for many businesses, some like Danby Appliances in Guelph, Ont., see potential benefits from the tariffs. The owner, Jim Estill, mentioned that while some parts will face higher prices due to the new tariffs, it could make their Canadian-made products more competitive in the market. Estill acknowledged the dual impact of tariffs, recognizing both potential gains and losses for his business.
Simon Gaudreault, chief economist at the Canadian Federation of Independent Business (CFIB), echoed concerns about the challenges posed by the retaliatory tariffs, emphasizing the higher import dependency of Canadian businesses compared to exports. He expressed skepticism about the effectiveness of the government’s support measures, citing past difficulties faced by small business owners in accessing such programs.
The article concludes with a call for a resolution to the trade war, emphasizing the need for a prompt and amicable conclusion to the ongoing economic disputes between Canada and the U.S.
