Waiting on tariffs hardest part for Canadian businesses, CFIB says

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OTTAWA — U.S.-imposed tariffs — and Canada’s retaliatory levies — will wreak significant harm on Canadian businesses.

That’s what Canadian Federation of Independent Business (CFIB) president Dan Kelly said will come of Wednesday’s latest escalation in U.S. President Donald Trump’s trade war.

“If we go even with medium-sized tariffs, this is going to be a gigantic issue for small and medium-sized companies across the country,” Kelly said.

“The tariff threat, and in particular Canada’s retaliatory tariffs, it will deeply scar Canada’s business community.”

In mid-March, the U.S. imposed a 25% tariff on steel and aluminum, which came shortly after Trump imposed tariffs on all Canadian goods — with exemptions applied on Canada-U.S.-Mexico Agreement-compliant goods and the auto sector, set to expire on Wednesday.

Kelly said that while about 16% of their member companies export to the U.S., around half of them import goods and materials from the U.S.

“It’s Canada’s retaliatory tariffs that will be the second shoe to drop,” he said.

“Export tariffs from the U.S. will hurt hard.”

With Canadian industry left in an unbearable limbo due to inconsistent and spasmodic communications from Trump, Kelly said the uncertainty over what will happen is nearly as damaging to Canadian business as the tariffs themselves — particularly considering Trump’s Wednesday afternoon announcement lacked initial clarity on Canada’s position.

“I’ve heard from more than a one business owner that says, ‘If we’re going to have tariffs in place, can we just get it over with? Let’s get the tariff war going so that at least we know what we’re going to be dealing with.'” he said.

“It has already caused so many businesses to move into retreat, businesses that are, you know, holding off any growth, plant expansion.

“This is really, really troubling.”

bpassifiume@postmedia.com
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