The latest round of Canada-U.S. tariffs could affect more than what we pay when checking out at our favourite stores. It could also have an impact on Canadian jobs, investment and production.
New 50 per cent U.S. tariffs took effect Aug. 22 on roughly $28 billion in Canadian goods after last-minute talks failed to produce an agreement.
The tariffs cover a wide range of Canadian products, including some alcohol, clothing, hockey equipment, cement, and dairy products among others.
For Canadian companies that depend on the United States, the tariffs could make their products much harder to sell.
American buyers may cut orders, choose U.S. suppliers or look to other countries.
That could leave Canadian businesses with lower sales and less work.
If that continues, companies could reduce shifts, delay hiring, cut investment or, in more serious cases, lay off workers.
The new tariffs come on top of separate U.S. trade measures already affecting Canadian steel, aluminum, automobiles and softwood lumber.
Canada is responding with new tariffs of its own beginning Sept. 8.
Prime Minister Mark Carney says Canada’s retaliatory tariffs will be concentrated in sectors including steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics, although the detailed product list has not yet been released.
Those tariffs could help some Canadian companies by making competing American products more expensive in Canada.
But that comes at a cost. Canadian businesses that depend on American machinery, steel, electronics or other parts may have to pay more for the supplies they need.
That could leave some companies facing higher costs at the same time they are having a harder time selling into the U.S.
In a nutshell, the longer the dispute continues, the more uncertainty it creates.
Businesses often make hiring, expansion and investment decisions years in advance. When tariffs and trade rules change quickly, companies may hold off on those decisions until they have a clearer idea of how the trade war will play out.
That uncertainty could become one of the biggest risks for Canadian workers and industries if the trade dispute lingers on.
(Bob Perreault)
