As politicians rush to find ways to avoid proposed American tariffs on Canadian goods, manufacturing leaders in the London area are developing backup plans to keep their operations running amid significant uncertainty.
President-elect Donald Trump has announced he would impose a 25 percent tariff on all Canadian products entering the United States unless Canada enhances its border security.
“We’re definitely concerned, and we’re definitely talking about it,” said Paul Smith, president of Arva Industries, a St. Thomas-based company that designs and manufactures equipment for the rail and mining sectors.
The company employs 47 people and does considerable business within Canada as well as in Mexico and Latin America on the mining side. On the rail side of things, customers are located in Chicago, Philadelphia, and New York City. It would be that portion of the business that would suffer most if tariffs were enacted, Smith noted.
“You have to prepare. We’re trying to see if we can transition into more of an engineering firm rather than just a manufacturing one, so we’d look for locations in the United States to produce our products, particularly on the rail side. In fact, we’re meeting with a company next week that offers that service. That’s our mitigation.”
Producing rail cars in the United States would cost approximately 60 percent of any contract’s value for Smith’s company. “It’s a concern.”
U. S. steel, orange juice on list of Canada’s retaliatory tariffs: Source
A senior government source has informed that a list of potential retaliatory tariffs includes U. S. steel and aluminum, ceramics, and orange juice. However, these would only be enforced if U. S. president-elect Donald Trump proceeds with his tariff threat against Canadian goods.
Etienne Borm is the president of Etbo Tool and Die Inc., located outside Aylmer; his company has around 200 employees who design and create processes and automation for making auto parts while also manufacturing various components. He stated that tariffs would pose a “significant problem” for his business as well as other manufacturers across Canada.
“Mr. Trump has a way of negotiating with strong language, and I fully expect there will be some sort of tariff-hopefully short term-so he can claim victory on some of his objectives,” Borm said. “Hopefully it’s short-lived so we can navigate through it together. We just need to hope calmer heads prevail.”
Borm explained that business leaders know how to stay calm during uncertain times: “I’m reasonably confident there’s going to be some negotiated solution at the end where at least optically he gets a win so we can move forward.”
“It’s an unpredictable landscape created by one person creating noise.” Whether dealing with bullies or bombastic executives ; you listen carefully considering what needs may exist behind their statements – ultimately observing things from broader perspectives across our nation.”
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U. S. steel, orange juice on list of Canada’s retaliatory tariffs: Source
A senior government source has informed that a list of potential retaliatory tariffs includes U. S. steel and aluminum, ceramics, and orange juice. However, these would only be enforced if U. S. president-elect Donald Trump proceeds with his tariff threat against Canadian goods.
Etienne Borm is the president of Etbo Tool and Die Inc., located outside Aylmer; his company has around 200 employees who design and create processes and automation for making auto parts while also manufacturing various components. He stated that tariffs would pose a “significant problem” for his business as well as other manufacturers across Canada.
“Mr. Trump has a way of negotiating with strong language, and I fully expect there will be some sort of tariff-hopefully short term-so he can claim victory on some of his objectives,” Borm said. “Hopefully it’s short-lived so we can navigate through it together. We just need to hope calmer heads prevail.”
Borm explained that business leaders know how to stay calm during uncertain times: “I’m reasonably confident there’s going to be some negotiated solution at the end where at least optically he gets a win so we can move forward.”
Planning Amidst Uncertainty
Harry Laidlaw serves as general manager at Takumi Stamping-a Canadian subsidiary of a Japanese company based in St. Thomas-which employs about 350 individuals producing automotive parts for Toyota. Roughly 30 percent of its output is shipped south into the United States while most goes towards Canadian plants. “I’m very worried about this situation. Financially , concerning profit margins , it could have severe repercussions since we ship down into Indiana and Kentucky. The people I work alongside share similar concerns regarding job security , which affects overall business operations for Canadians ,” Laidlaw expressed. One major challenge lies within this uncertainty , he remarked : “We don’t know what’s coming , which is fundamentally problematic. It’s unclear how much rhetoric exists versus what should be taken seriously from (Trump).” A solution must involve collaboration between Canadian premiers , industry leaders , along with federal representatives according to St. Thomas Mayor Joe Preston : “They purchase many items from us while we reciprocate equally – we’ve got strong trading ties,” he stated. Most seasoned entrepreneurs tend toward foresight yet remain adept at reacting swiftly under pressure mentioned Preston too :“It’s an unpredictable landscape created by one person creating noise.” Whether dealing with bullies or bombastic executives ; you listen carefully considering what needs may exist behind their statements – ultimately observing things from broader perspectives across our nation.”
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