Derek Friesen, the owner of PhiBer Manufacturing Inc. in Manitoba, had been mostly unaffected by the Canada-U.S. trade tensions, except for a few products hit by earlier tariffs. However, the recent announcement of retaliatory Canadian tariffs on $27.6 billion worth of U.S. goods has now directly impacted his business.
PhiBer Manufacturing Inc. produces agricultural equipment, including dash trailers used by large-scale farmers for crop maintenance. The company traditionally imported frames for these trailers from Iowa. But with the introduction of new retaliatory tariffs on these frames starting on September 8, Friesen anticipates a significant increase in production costs.
Friesen expressed concerns that the increased tariffs on essential components would lead to a surge in the final product’s prices, making it challenging for farms to afford the equipment.
He further mentioned that the potential rise in costs might make the dash trailers, representing a significant portion of his sales, unaffordable in the near future.
While some businesses hope that the new tariffs could enhance domestic sales, others like Danby Appliances foresee challenges. Danby’s owner, Jim Estill, acknowledged that certain parts used in their products would now face higher prices due to the tariffs. However, he highlighted the possibility of increased competitiveness of Canadian-made goods in the market.
Estill noted that while the tariffs could offer some advantages, they might still have an overall negative impact, especially if consumer spending declines due to the ongoing trade war.
Targeted list of newly tariffed items
Starting on September 8, Canada will implement tariffs of varying percentages on a range of U.S. products. The impacted goods include seafood, paper products, furniture, apparel, tools, and motorcycles. Notably, products made of iron or steel, paper items, machinery, and parts will face the highest tariffs.
Economist Bradley Saunders from Capital Economics suggested that the government’s selection of goods for tariffs aimed to minimize the impact on Canadian consumers and industry while still affecting American businesses. He projected that the tariffs would have a limited effect on inflation and that government support initiatives could mitigate some negative effects on business growth.
- <a class="cardWrapper-u5T0r