Derek Friesen, the owner of PhiBer Manufacturing Inc. in Manitoba, expressed that the trade tensions between Canada and the U.S. had mostly avoided impacting his agricultural equipment business, except for a few products affected by earlier 10 per cent duties. However, with the recent announcement of retaliatory Canadian tariffs on $27.6 billion worth of U.S. goods, his company is now facing challenges. PhiBer Manufacturing Inc. specializes in producing agricultural equipment, including dash trailers used by large-scale farmers for crop management. These trailers have frames imported from Iowa, which will now be subject to new retaliatory tariffs starting on Sept. 8. Friesen anticipates that the increased costs due to these tariffs will significantly raise the prices of the trailers, potentially making them economically unfeasible for both buyers and sellers in the near future.
The targeted list of newly tariffed items by Canada includes various products from the U.S., with tariffs ranging from 15 to 50 per cent, effective from Sept. 8. These tariffs will impact a wide range of goods such as seafood, paper products, furniture, apparel, tools, and motorcycles. Bradley Saunders, an economist at Capital Economics, noted that the Canadian government’s selection of items for tariffs seems to be strategically chosen to have minimal impact on Canadian consumers while targeting American businesses. Saunders emphasized that the overall effect of these countermeasures on inflation and business growth is expected to be relatively minor.
While some businesses like Danby Appliances in Guelph, Ont., may benefit from the new tariffs by gaining a competitive edge in the Canadian market, many others are concerned about the negative repercussions. Simon Gaudreault, chief economist at the Canadian Federation of Independent Business (CFIB), raised concerns about the potential threats retaliatory tariffs pose to Canadian businesses, especially those heavily reliant on importing components from the U.S. Gaudreault emphasized that the existing support measures may not be sufficient to mitigate the adverse effects of the trade war, and an urgent resolution to the ongoing tensions is crucial for the business community.
In response to the trade war escalation, the Canadian government announced a $7.5-billion support package to assist businesses and workers affected by the tariffs. Despite these measures, the CFIB remains skeptical about the efficacy of the support programs, citing past challenges small businesses faced in accessing such assistance. The consensus among business owners, including Derek Friesen, is that a swift resolution to the trade war is essential to alleviate the economic strain caused by the tariffs.
