With Donald Trump being inaugurated as the new U.S. president on Monday, threats of tariffs on Canada haven't gone away since they were first floated over a month ago.
Canadian businesses are now facing the reality that the longtime trading partner to the south will be introducing some bumps when it comes to trade between the two nations.
Economic Development Regina put out a report back in early December taking a look at the tariffs and their proposed impact on southern Saskatchewan, calling that a big hit for the region's economic certainty.
With the tariffs on the horizon, President Chris Lane says that the reality of the situation is hitting businesses hard.
"I think the last time we talked the threat was there, but it was still a ways off and there was some hope that it might not actually come to fruition. But I think as Inauguration Day gets closer, I think from both businesses and a policy lens it's becoming more and more real. We know businesses that depend on the US as a market are rightfully concerned about what's going to happen here in the next couple weeks."
As the threat has drawn closer, Lane says that businesses have been adapting in various ways.
"There are various states of preparation for this or concern or action that can be taken. I think probably what's happening in some of these businesses is they're talking first of all to their US customers and trying to understand what impact any tariff would have on a customer's ability to continue to buy Canadian goods. So that's probably one of the first things that's happening now."
"It would be understandable if these businesses were in the process of making some contingency plans about what happens in the event of these tariffs and their ability to export diminishes. A lot of that will depend on specifics like how long and how deep are these tariffs going to last. So everything from operational continuity that I think in the most dramatic cases, probably some businesses that have operations in the US might even have a contingency plan about maybe shifting production of those products into the US and maybe avoiding the terror that way."
Businesses are also looking to diversify their customer base among other countries so they can sell without tariffs.
A big topic of discussion among the federal and provincial governments has been the proposal of counter-tariffs to try and put economic pressure on the United States.
Lane says that while standing up for the country is good, a counter-tariff could be a cause for anxiety among Canadian businesses.
"I think when you hear from businesses and the business community that there's a level of anxiety and concern that comes along with that as well. I think at the end of the day if you're doing business, generally, most people try to avoid making their product less competitive and less affordable for potential customers. So while it's an understandable tool, I think there's an understandable level of anxiety for business operators when they hear about things like retaliatory tariffs."
Lane stresses that a potential embargo on critical minerals or oil, which is another option which has come up, would also be worrying for businesses.
"We've been through this with canola in China or lentils in India, so we know the struggles that an end to Saskatchewan exports as a whole in a market can be. So I think we have to approach that with some caution, as well as understanding that there's probably not a one-size-fits-all perfect solution in this situation for sectors and regions in Canada, but also understanding that unity is ultimately the most important thing here."