Derek Friesen, the owner of PhiBer Manufacturing Inc. in Manitoba, expressed concerns about the impact of new retaliatory Canadian tariffs on his business. The company produces agricultural equipment, including dash trailers used by large-scale farmers. The frames for these trailers are imported from Iowa and will now be subject to additional tariffs starting on Sept. 8. Friesen anticipates that these tariffs will significantly increase costs, making it challenging for farms to absorb the price hikes.
The targeted list of newly tariffed items includes a range of products from the U.S., such as seafood, paper products, furniture, apparel, tools, and motorcycles. Bradley Saunders, an economist, noted that the Canadian government focused on goods with available domestic alternatives to minimize the impact on consumers while hurting American businesses.
While some businesses like Danby Appliances may benefit from the tariffs by gaining a competitive edge in the Canadian market, others like PhiBer Manufacturing Inc. are concerned about the potential negative consequences. Simon Gaudreault, chief economist at the Canadian Federation of Independent Business, highlighted the challenges faced by Canadian businesses due to the trade war and expressed doubts about the effectiveness of government support measures.
Despite the support package announced by the federal government to assist businesses affected by the trade war, there are concerns that the measures may not be sufficient to address the broader economic impact. Business owners like Friesen emphasize the importance of resolving the trade war to alleviate the strain on businesses in both countries.