Derek Friesen, the owner of PhiBer Manufacturing Inc. in Manitoba, had not been significantly impacted by the Canada-U.S. trade conflict until the recent announcement of retaliatory Canadian tariffs on $27.6 billion worth of U.S. products. PhiBer Manufacturing Inc. specializes in agricultural equipment, such as dash trailers used by large-scale farmers for crop management. While the company traditionally sourced frames for these trailers from Iowa, the frames will now be subject to new retaliatory tariffs starting on Sept. 8. Friesen expressed concerns that the increased costs resulting from these tariffs will likely lead to a substantial rise in the prices of their trailers, potentially rendering them economically unfeasible for both buyers and sellers in the near future.
The targeted list of newly tariffed items includes a range of products from the U.S., with tariffs set at 15, 25, or 50 percent, effective from Sept. 8. These tariffs will affect various goods, such as seafood, paper products, furniture, apparel, tools, and motorcycles. Notably, products made of iron or steel, paper goods, machinery, and parts face some of the highest tariffs. Economist Bradley Saunders from Capital Economics noted that the Canadian government strategically selected goods for tariffs, primarily targeting items with available domestic alternatives to minimize the impact on Canadian consumers and industries.
While some businesses may benefit from the new tariffs, such as Danby Appliances in Guelph, Ontario, which could gain a competitive edge for their Canadian-made products, others like PhiBer Manufacturing Inc. anticipate challenges due to increased costs. Simon Gaudreault, chief economist at the Canadian Federation of Independent Business (CFIB), emphasized the detrimental effects of retaliatory tariffs on Canadian businesses, particularly those heavily reliant on imports from the U.S. Despite the government’s $7.5-billion support package for businesses and workers affected by the trade dispute, concerns remain about the adequacy of these measures in mitigating the negative impact of the ongoing trade war.