With just a week left before new U. S. tariffs are expected to kick in, business groups in the Waterloo region of southern Ontario are worried about how this uncertainty might impact local businesses and manufacturers.
In mid-July, U. S. President Donald Trump announced that a 50 per cent tariff would be placed on Canadian exports to the U. S., which includes goods that comply with the Canada-U. S.-Mexico Agreement (CUSMA).
Trump has previously threatened tariffs only to backtrack later, but it’s uncertain if he’ll do so again this time.
“There is nothing worse, absolutely nothing worse for business in terms of making decisions, investment decisions, business decisions, hiring decisions than uncertainty,” Ian Mc Lean, president and CEO of the Greater Kitchener Waterloo Chamber of Commerce, told .
U. S. officials have stated that this action is a reaction to Canada’s retaliation against U. S. trade policies. This includes taking U. S. alcohol off provincial store shelves and accusations of discrimination against U. S. motor vehicles and dairy products.
The impending 50 per cent tariff will also come while Canadian officials are trying to negotiate amendments to CUSMA with their American counterparts.
If no agreement is reached by August 19, the new rate will take effect.
LISTEN | Greg Durocher explains what he’s hearing from Cambridge businesses: The Morning Edition – K-W7:01Local businesses brace for new tariffs A week remains until President Donald Trump follows through on his threat to impose a 50 per cent tariff on Canadian goods-a move causing upheaval among local manufacturers who export across borders. Greg Durocher from Cambridge Chamber shares insights on what he’s hearing from nearby businesses.
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‘No one’s an expert’
This proposed 50 per cent tariff is an unprecedented threat for Canada as more than 500 Canadian products are likely to face this new charge. The U. S. has categorized the affected Canadian exports into three groups: Dairy, which includes milk, cream, whey and related ingredients. Alcoholic beverages, which covers beer, wine and spirits. Motor vehicles-though notably not including cars-encompassing over 12 industries like electronics and telecom equipment, furniture and home goods, plastics and packaging as well as toys and sporting goods. Mc Lean mentioned that local business owners have expressed various feelings about the situation-some feel “angry, upset at the Americans,” while others seem anxious. “Others may be hoping that this might not come to pass,” he said. “No one’s an expert. We’re not an expert … and I’ll tell you that those who are experts in this field-accounting firms or logistics firms-no one knows.” Greg Durocher, president and CEO of the Cambridge Chamber of Commerce noted that some business owners are starting to feel “panicky” due to the tariff threats. Durocher didn’t name specific companies but shared that some local businesses have expressed uncertainty regarding how their previously CUSMA-compliant components might be impacted by these new tariffs. Nevertheless, he indicated that only “a very, very small percentage” of what Cambridge exports to the U. S. would fall under these new charges. Durocher mentioned his chamber is collaborating with customs brokers and consultants who assist businesses in understanding how much of their products could be affected by these incoming tariffs. This process has inadvertently led many businesses to discover local suppliers or partners within Canada. “That’s kind of the good news story out of what’s happening,” he said. “We at the chamber are starting to work with companies saying ‘Well why don’t you try finding someone locally who can handle that or someone in Canada?'”<پ Durocher acknowledged that while seeking domestic alternatives may help some businesses; it’s not a solution for everyone.LISTEN | Greg Durocher explains what he’s hearing from Cambridge businesses: The Morning Edition – K-W7:01Local businesses brace for new tariffs A week remains until President Donald Trump follows through on his threat to impose a 50 per cent tariff on Canadian goods-a move causing upheaval among local manufacturers who export across borders. Greg Durocher from Cambridge Chamber shares insights on what he’s hearing from nearby businesses.
One week before deadline
<پ The spoke with industry sources indicating that the Canadian government plans on addressing some demands from the U. S., such as lifting bans on American alcohol sales while considering removing retaliatory tariffs on American-made vehicles along with changes related to dairy-all in exchange for relief from tariffs.<پ The has reported Trade Minister Dominic Le Blanc along with his American counterpart aim at providing Trump “a path towards potential trade deal possibly by Monday.”</پ However negotiations extend beyond just these upcoming tariffs; Le Blanc along with chief trade negotiator Janice Charette seek relief regarding sectoral tariffs imposed by America affecting several Canadian goods including steel , aluminum , lumber , and automobiles.<پ Additionally Canada hopes current discussions will facilitate cooperation between both nations concerning extending CUSMA which Trump chose not renew last July.<پ “I think we need faith in our federal government knowing any agreement always involves compromise,” Mc Lean remarked about ongoing trade talks.<پ “People desire fair agreements without feeling like we’re negotiating on bended knee toward Americans.”Source link
