Manitoba industries disappointed 'destructive' trade war with U.S. going ahead
CBC
Some Manitoba business representatives expect the U.S.'s decision to slap a 25 per cent tariff on Canadian goods will harm both sides in the trade war even if they're lifted in the short term.
President Donald Trump said Monday there was "no room left" for Mexico and Canada to stop the levies on exports to the U.S., which came into effect midnight on Tuesday.
"They have the potential to be very destructive to our industry," said Aaron Dolyniuk, executive director of the Manitoba Trucking Association.
About 41 per cent of freight in Manitoba revolves around cross-border trade, Dolyniuk said, with some businesses having already started to slow down amid the U.S. president's tariff threats.
"Short-term impacts are likely going to be very large, hurting a lot of companies," he said.
"I am concerned about some of our members.… They've built their businesses, in some cases over decades, and something like this could have a very large impact in a very short period of time."
The trade relationship between both countries was worth about $1.3 trillion in 2023, with $3.6 billion in goods crossing the border every day.
Terry Shaw, Prairies vice-president for the Canadian Manufacturers & Exporters Association, said a recent CME survey found nearly 50 per cent of respondents would freeze hiring or lay people off if tariffs where imposed.
"We've heard some members are already laying people off," Shaw said.
"In terms of cost absorption, the options are really limited. Just over one in 10 … of our members surveyed nationally say they can fully absorb the tariff costs. But even then, only on a short-term basis."
Trump said he was imposing the tariffs to punish Mexico and Canada because they're not doing enough to stop the flow of drugs and migrants into the U.S.
The U.S. paused them in February after both countries made a series of commitments on border security, including a $1.3-billion border security plan that had been previously announced by the Canadian government.
Foreign Affairs Minister Mélanie Joly said Monday the country was ready to impose counter-tariffs against $155 billion in American goods. The first tranche of tariffs went into effect at midnight.
"There is the possibility of being harmed kind of twice," said Andrea Ladouceur, CEO of the Bioscience Association of Manitoba. "We do import a lot of ingredients from the U.S. as well."
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