Friesen, the owner of PhiBer Manufacturing Inc. in Manitoba, expressed concerns about the impact of the recent Canadian retaliatory tariffs on his business. The company produces agriculture equipment, including dash trailers for farmers, with frames imported from Iowa. With the new tariffs set to take effect on September 8, the cost of these frames will increase significantly, potentially leading to higher prices for their products.
Friesen emphasized that such a price hike could make it financially challenging for both buyers and sellers, particularly affecting the economic feasibility of the trailers, which constitute a significant portion of their sales. He warned that farmers may struggle to absorb the additional costs resulting from the tariffs.
The retaliatory measures, targeting $27.6 billion worth of U.S. goods, will impose tariffs of 15, 25, or 50 percent on various products, including seafood, paper goods, furniture, apparel, tools, and motorcycles. According to economist Bradley Saunders, the Canadian government strategically selected items with domestic alternatives to minimize the impact on consumers while hurting American businesses.
While some businesses, like Danby Appliances in Ontario, may benefit from the tariffs by gaining market share due to increased competitiveness, others fear the negative repercussions. Simon Gaudreault, the chief economist at the Canadian Federation of Independent Business (CFIB), expressed concerns that the tariffs could pose a significant threat to Canadian businesses, especially those relying on U.S. imports for components.
Despite the government’s announcement of a $7.5 billion support package to assist affected businesses and workers, Gaudreault and others remain skeptical about the effectiveness of these measures. They believe that ending the trade war is the ultimate solution to alleviate the challenges faced by Canadian businesses.
