Derek Friesen, the owner of an agricultural equipment manufacturing company in Manitoba, had been relatively unaffected by the Canada-U.S. trade war until recently. His company, PhiBer Manufacturing Inc., produces dash trailers used by large-scale farmers for crop maintenance. These trailers include frames imported from Iowa, which will now be subject to new retaliatory tariffs as announced.
Friesen expressed concerns that the increased tariffs on these essential components would lead to a significant rise in production costs. He believes that such cost hikes would be challenging for farms to absorb, potentially making the dash trailers economically unviable in the near future.
The retaliatory tariffs, affecting a wide range of U.S. products, will come into effect on September 8. Bradley Saunders, an economist, noted that the Canadian government’s tariff selection seemed strategic, focusing on items with domestic alternatives to minimize the impact on Canadian consumers and industries.
While some businesses like Danby Appliances anticipate minimal cost increases due to the tariffs and even expect a competitive advantage for their Canadian-made products, others fear the negative repercussions. Simon Gaudreault, chief economist at the Canadian Federation of Independent Business (CFIB), emphasized the detrimental effects of the tariffs on Canadian businesses, especially those heavily reliant on U.S. imports.
Despite the government’s $7.5-billion support package for businesses affected by the trade war, concerns remain about its effectiveness in mitigating the economic challenges faced by businesses. Gaudreault expressed doubts about the support measures adequately aiding businesses through the ongoing trade dispute, emphasizing the need for a resolution to the trade war.
Ultimately, many business owners, including Friesen, believe that a resolution to the trade war is crucial for restoring stability and ensuring the sustainability of their operations.