As newly imposed tariffs take effect, a number of business and municipal leaders in the southeast are expressing their surprise.
Dave Carlson, Reeve of the Rural Municipality of Emerson-Franklin, says he expected negotiations to take place and never thought the tariffs would actually be implemented. Now that they have, he hopes they will be short-lived.
For months, residents and businesses have been closely monitoring the situation, trying to decipher what the future holds.
“You don't know how it's exactly going to affect your livelihood,” he explains. “But now that it looks like it's happening, everyone has just got to bear down and do what you can and support local if you can.”
The RM is home to many businesses that rely on cross-border trade, including transport companies, customs brokers, and agricultural producers who export goods to the U.S. Carlson says these businesses will likely feel the effects first.
“There are businesses out there that don’t have any real choice. They do business in the United States,” he says. “It's definitely going to make a difference and again, we're just hoping that it's going to be short-lived and that some compromises or deals can be done.”
Carlson says he does wonder if the tariffs could push businesses to relocate to the U.S. to avoid the added costs.
“The worry can be, are companies going to say, 'You know what, I'm going to make my investments in the United States to get around the tariffs?’ Maybe I'm moving some plant operations or things like that, just to avoid those tariffs. That's a worry.”
Despite the challenges, he encourages his community to stay strong, band together, and advocate for change.
“We just have to pull together and I think we try to look for alternative markets, do all that you can and lobby your government officials, your MPs, your MLAs to try to help get us back on track.”
Carlson adds “I just think our trade between our countries is just far too integrated to make this into a long, protracted fight.”
Mid Canada Transload Services, located south of Letellier, Manitoba along Highway 75, specializes in transloading agricultural, food-grade, organic, industrial, and manufactured products. The company is expected to be significantly impacted by the newly imposed tariffs.
Like Carlson, CEO Real Tetrault also did not anticipate that Trump’s tariff threat would become a reality.
“I was in quite a bit of disbelief that he actually went through with it and especially across the board on all products from Canada including agriculture. Which I feel that the U.S. and Canada are very intertwined in agriculture as well as a lot of other products. We need their products, and they need our products. So, I was very surprised that this actually went through.”
With 70% of the company's business dependent on the United States, the potential consequences are concerning.
“If the costs become higher, it will take some time for companies to adjust. And either they pass on the added cost to their customer, or else they just stop buying. And I think in the short term that's what will happen. Our customers will stop transporting goods through the border just to see what happens.”
In anticipation of the tariffs, many clients have increased shipments over the past month to prepare. While this provides some temporary relief, Tetrault acknowledges that it is not a sustainable solution.
“Either they have to make a decision to pay the 25% tariff or not export. So, it will be interesting.”
As for Mid Canada, the company is closely monitoring the situation while maintaining operations.
“There will be some product moving within Canada, so we do some of those goods. It's not sufficient at this point to continue in the long term.”
If the tariffs persist, Tetrault acknowledges that difficult decisions will have to be made.
“We lay staff off? Do we only open one day a week? I don't know. I don't like to see that part, but it's difficult to know or to say at this point what the direction is. We'll just wait and see.”