Derek Friesen, the owner of PhiBer Manufacturing Inc. in Manitoba, had been relatively unaffected by the trade tensions between Canada and the U.S. However, the situation changed when Canada announced retaliatory tariffs on $27.6 billion worth of U.S. goods. The tariffs will now impact the frames for his company’s agriculture equipment, including the dash trailers used by large-scale farmers to care for crops. These frames, previously imported from Iowa, will now be subject to new tariffs starting on September 8.
Friesen expressed concern that the increased costs due to these tariffs will significantly raise the prices of their trailers. He emphasized that farms cannot afford such price hikes, and it may soon become economically unfeasible to buy or sell these trailers.
The retaliatory tariffs imposed by Canada will affect a wide range of U.S. products, including seafood, paper products, furniture, apparel, tools, and motorcycles. Bradley Saunders, an economist, noted that the Canadian government strategically targeted goods that have domestic alternatives, aiming to impact American businesses while minimizing the impact on Canadian consumers and industries.
While some businesses like Danby Appliances may benefit from the tariffs by making their Canadian-made products more competitive, others, like PhiBer Manufacturing Inc., anticipate challenges ahead. Jim Estill, the owner of Danby Appliances, mentioned that while some increased costs are manageable, the overall impact of the tariffs may deter customers from making significant purchases.
Simon Gaudreault, chief economist at the Canadian Federation of Independent Business (CFIB), shared concerns about the negative impact of retaliatory tariffs on Canadian businesses, especially those reliant on U.S. imports. Gaudreault highlighted that the support measures announced by the federal government may not be sufficient to alleviate the challenges faced by businesses during the trade war.
Despite the support package offered by the government, Friesen emphasized that the ultimate solution lies in resolving the trade war. He stressed the importance of finding a resolution to the ongoing trade tensions between Canada and the U.S.