Derek Friesen, the owner of PhiBer Manufacturing Inc. in Manitoba, had managed to avoid the impact of the Canada-U.S. trade war on his agricultural equipment manufacturing business, with only a few products being affected by earlier 10 per cent duties. However, the situation changed with the recent announcement of Canadian retaliatory tariffs on $27.6 billion worth of U.S. goods.
PhiBer Manufacturing Inc. produces agriculture equipment, including dash trailers crucial for large-scale farmers. These trailers have frames imported from Iowa, but they will now be subject to new retaliatory tariffs starting September 8th.
Friesen expressed concerns that the increased tariffs on critical components like frames would inevitably lead to a significant rise in prices, making it challenging for farms to afford the equipment.
He anticipates that the economic feasibility of these trailers, accounting for 70% of his sales, may be compromised in the near future.
While some business owners fear the higher costs resulting from retaliatory tariffs, others see an opportunity for increased sales within Canada due to these countermeasures.
- Are you shifting towards Canadian products amid the escalating trade tensions? Share your thoughts with us at ask@cbc.ca.
Targeted list of newly tariffed items
Starting on September 8th, Canada will impose tariffs ranging from 15% to 50% on various U.S. products. The affected goods include seafood, specific paper products, furniture, apparel, tools, and motorcycles. Notably, items made of iron or steel, raw metals, paper products, and machinery and parts face the highest tariffs.
Economist Bradley Saunders from Capital Economics noted that the selection of goods for tariffs appeared strategic, aiming to impact American businesses while minimizing the burden on Canadian consumers and industries.
He explained that the countermeasures’ overall impact on the economy would be marginal, slightly boosting inflation, with government support measures likely offsetting half of the potential drag on business growth.
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University of Calgary economist Trevor Tombe’s analysis indicates that nearly three-quarters of the tariffed items are industrial supplies or goods used in manufacturing processes, impacting businesses more than consumers.
For businesses like Danby Appliances in Guelph, Ontario, the new tariffs present