Tariff talks are reaching a boiling point between Canada and the United States.
After nearly two weeks of negotiation talks between the two countries broke down on Friday without an agreement, the US
This past weekend the United States imposed 50% tariffs on roughly $20 billion of Canadian goods (five per cent of exports), and the Canadian federal government has said it will respond dollar for dollar, with matching tariffs taking effect September 8.
Quinte Economic Development Commission CEO Chris King said it was disappointing to see the situation get to this point.
“There’s potential direct impacts on our local economy with our manufacturers, and a lot of it depends on where the company the products are making is, and where they’re selling to,” he explained.
“The US is certainly a big part of many of our manufacturers’ market, and you recall last year the Canadian Chamber of Commerce did analysis of those companies that are most at risk or most exposed to the U.S. marketplace, and our region was number 11 in Canada in terms of our exposure to the U.S. marketplace.”
In a statement to InQuinte.ca, Quinte West Chamber of Commerce CEO Joe Southwell noted the region relies heavily on manufacturing, farming, and logistics to move items across the border every day and unilateral tariffs hurt local businesses that are already dealing with tight margins.
Most businesses in Prince Edward County do not ship directly across the border, so for many PEC businesses, the tariff impact is limited.
However, PEC Chamber CEO Duarte Da Silva stated retaliatory tariffs Canada is preparing on appliances, agricultural equipment, steel, and electronics, among other items, will raise input and equipment costs for farms, builders, and hospitality operators, which affects the County’s visitor-based economy.
“It impacts consumer confidence, discretionary spending, and the decisions a small business makes about whether to hire or invest,” he stated.
New federal programs are out to help businesses through the uncertainty.
“We encourage companies to reach out to us to share what’s happened to them, and then we’re going to keep communicating and sharing information and resources and programs that may help to support companies as they go through this,” said King.
“Hopefully, both sides get back to the table and come up with an agreement that works for everybody.”
