2 weeks Ago By Brody Langager
The threat of U.S. tariffs still looms in the distance for Canada, and some businesses are working to secure their production and manufacturing with that in mind.
Greater Saskatoon Chamber of Commerce CEO Jason Aebig said local business will undoubtedly face more burdens in spite of the 30-day pause announced on Monday. “I think alarm is a very good way to characterize it,” Aebig said. “We shouldn’t minimize this; what we have seen here in the last 48 hours is a president who has torpedoed a trillion-dollar trading relationship that has produced 40-plus years of prosperity and security for our two countries.
It is unprecedented.” After American President Donald Trump threatened to implement 25 per cent tariffs on Canadian-made goods and a 10 per cent tariff on Canadian energy last week, Prime Minister Justin Trudeau announced retaliatory tariffs of 25 per cent on $155 billion worth of American goods over the course of the coming month. “Like the American tariffs, our response will also be far reaching and include everyday items such as American beer, wine and bourbon, fruits and fruit juices, including orange juice, along with vegetables, perfumes, clothing, shoes,” Trudeau said.
The Canadian tariffs would also apply to items like household appliances, furniture, sports equipment, lumber and plastics, he said. That all changed around midday on Monday, when Trudeau announced that discussions with Trump had resulted in a pause of at least 30 days. The Trump White House claims the U.
S. tariffs are a retaliation for fentanyl being smuggled over the country’s borders from Canada and Mexico. Trudeau noted that less than one per cent of fentanyl and less than one per cent of illegal crossings into the United States come from Canada.
Aebig said casualties in the business sector are expected, noting many businesses have had a longstanding interdependency with our neighbours to the south. “There will be business closures, there will be significant layoffs depending on the sector. I don’t think there’s any way to sugarcoat this,” he said.
Canadians have responded with vows to buy only local or Canadian-made goods when possible. Aebig said this is a good step, but unlikely to entirely stanch the bleeding to come. Canada is partly to blame for the dire situation, because regulatory roadblocks, interprovincial red tape and the carbon tax have made the country’s economy less competitive and more vulnerable, he said.
For Canadian politicians, dealing with Trump is like “pinball diplomacy,” with the goalposts constantly moving, he added. “It’s bonkers. It’s bonkers, the whole thing.
” Premier Scott Moe noted on Monday that 55 per cent of Saskatchewan’s exports go to the U.S., adding that Saskatchewan is probably the least reliant province in this regard.
He said the conversation needs to be about de-escalation. “We are an exporting province, and we are an exporting nation,” Moe said. Moe’s government has not announced any tariffs of its own, but he said it’s exploring those options.
Cole Thorpe, owner and founder of Prairie Proud, a retail store in Saskatoon, said local businesses have been struggling on multiple fronts, including pandemic recovery and more recently the Canada Post strike. “We experienced double-digit decreases in revenue in the holiday season this year, which we’re still surviving, but it’s really been hard,” Thorpe said. While some of the manufactured products sold at Prairie Proud come from the U.
S., it has been working over the past few years to offer more Canadian-made products, he said. “Over half of our products now, the full supply chain, the full manufacturing is done in Canada.
” TCU Place CEO Tammy Sweeney said investing in Saskatoon is more important than ever. “It requires that we as a city and as a destination take even more effort to ensure that we are competitive on a national basis.” While TCU Place has been working over the years to source more of its food and products locally, many costs would go up if tariffs become a reality, and clients would likely become more cautious about event bookings.
“If we get artist shows in our theatre, with the dollar rate primarily, then it will be almost cost-prohibitive for them to come to Canada. It’s already tight with the dollar rate what it is right now.”.
