Derek Friesen, the owner of an agricultural equipment manufacturing business in Manitoba, had been mostly unaffected by the Canada-U.S. trade war until today. His company, PhiBer Manufacturing Inc., produces agricultural equipment, including dash trailers used by large-scale farmers. These trailers have frames imported from Iowa, but as of September 8, they will be subject to new retaliatory tariffs imposed by Canada.
Friesen expressed concern that the increased tariffs on these essential components will lead to a significant rise in prices, making it challenging for farms to absorb the additional costs. With dash trailers constituting around 70% of his sales, Friesen fears that they may become economically unfeasible in the near future.
The retaliatory tariffs, affecting various U.S. products valued at $27.6 billion, include seafood, paper products, furniture, apparel, tools, and motorcycles. Bradley Saunders, an economist, noted that the Canadian government aimed for a targeted approach to minimize the impact on consumers while hurting American businesses.
While some businesses, like Danby Appliances in Guelph, Ontario, anticipate manageable cost increases due to the tariffs, others fear the potential negative effects. Simon Gaudreault, chief economist at the Canadian Federation of Independent Business (CFIB), highlighted the challenges faced by Canadian businesses, especially those heavily reliant on imports from the U.S.
Despite the government’s $7.5-billion support package for businesses affected by the trade war, concerns remain about the effectiveness of these measures. Gaudreault expressed skepticism about the support programs, emphasizing the need for a resolution to the ongoing trade dispute as the ultimate solution.