Derek Friesen, the owner of PhiBer Manufacturing Inc. in Manitoba, reveals that the ongoing trade tensions between Canada and the U.S. had previously spared his agricultural equipment business, with only a few products being affected by earlier 10 per cent tariffs. However, the situation changed when Canada announced retaliatory tariffs on $27.6 billion worth of U.S. goods. Starting September 8, the frames imported from Iowa for their dash trailers, essential equipment for large-scale farmers, will be subjected to new tariffs. Friesen expresses concerns that such tariffs will significantly increase costs, potentially making these trailers economically unviable in the near future.
The targeted list of newly tariffed items by Canada includes various products such as seafood, paper goods, furniture, apparel, tools, and motorcycles. The tariffs are set at 15, 25, or 50 per cent and affect items made of iron, steel, paper products, machinery, and parts. According to economist Bradley Saunders, the selection of goods for tariffs seems strategic, aiming to impact American businesses while minimizing the burden on Canadian consumers and industries.
While some businesses like Danby Appliances may benefit from the tariffs by gaining a competitive edge in the Canadian market, others like PhiBer Manufacturing Inc. and many small businesses express concerns over the potential negative impacts. Simon Gaudreault, chief economist at the Canadian Federation of Independent Business (CFIB), notes that retaliatory tariffs pose a significant threat to Canadian businesses, especially those more reliant on U.S. imports than exports. Gaudreault remains skeptical about the effectiveness of the newly announced support measures by the federal government, emphasizing the critical need for a resolution to the trade war.
Overall, the impact of the tariffs remains a topic of concern for Canadian businesses, with hopes for a swift resolution to alleviate the economic pressures stemming from the trade dispute.