Canadian industry leaders are seeking government assistance to counter potential U.S. tariffs that threaten local businesses and jobs.
Ottawa: Canadian industry groups are sounding the alarm about possible U.S. tariffs. They’re worried about how these tariffs could hurt local businesses. The president of Canadian Manufacturers and Exporters, Dennis Darby, wrote an open letter to political leaders, stressing the risks to manufacturing.
He pointed out that if Canada retaliates, it could lead to even more economic trouble. A recent survey showed that 90% of manufacturers expect serious impacts if tariffs are imposed. This could mean higher prices for goods on both sides of the border.
Darby explained that many Canadian exports are semi-finished goods. If tariffs make these more expensive, it could drive up costs for U.S. companies, leading to inflation in both countries. Plus, Canadian businesses might lose sales as U.S. firms look for cheaper options.
The survey also revealed that nearly half of manufacturers fear layoffs or hiring freezes if tariffs go through. With the economy already shaky due to high interest rates, the situation could worsen if tariffs are enacted.
Darby is urging the government to create a short-term relief program to help exporters. He believes this could be funded through counter-tariffs or export taxes. Many businesses are already holding back on investments and hiring due to uncertainty.
He’s also calling for incentives to support domestic manufacturing and tax relief to stabilize businesses. If new laws are needed for these measures, he insists Parliament should act quickly.
Currently, Parliament is prorogued until March 24, adding to the uncertainty as the country braces for potential tariffs. Darby emphasizes that if Canada retaliates, the government must have a plan to support affected firms.
Retailers are also concerned about the impact of tariffs. They warn that higher prices could lead to slower consumer spending, which would hurt sales. Consumers are already feeling the pinch from inflation, making them sensitive to price hikes.
The Canadian Federation of Independent Business is echoing these concerns, noting that many small businesses rely on trade with the U.S. They’re calling for reduced taxes to help offset the impact of tariffs.
Business groups believe that addressing long-standing issues like interprovincial trade barriers could also help during this uncertain time. They’re ready to tackle these challenges head-on, even if it takes a crisis to bring about change.
