Canadian businesses are concerned about the impact of potential tariffs south of the border.
U.S. President-elect Donald Trump is threatening a 25 per cent tariff on all imports from Canada until it clamps down on drugs and migrants crossing the border.
The Canadian Federation of Independent Business said blanket tariffs of any amount would have a massive impact on our economy.
President Dan Kelly said the effect of tariffs on the value of the Canadian dollar would increase the cost of U.S. imports, affecting small businesses and consumers alike.
“Canada cannot afford to dismiss this as a idle threat or initial positioning – we need to take this seriously and present, once again, a united front in responding to this challenge,” Kelly said in a news release.
“Our governments must take all actions within our control to ensure we are a good and reliable trading partner for the US and the world.
“These include a stronger focus on crime, stabilizing our supply chains such as ports and railways, promoting our energy sector and reducing the regulatory and tax burdens facing Canadian businesses.”
About three-quarters of Canada’s exports go to the United States. According to the federation, small- and medium-sized businesses account for about 40 per cent of exports to the U.S.
Meanwhile, the Canadian Chamber of Commerce said Canada needs to urgently adapt its approach to trade talks with the United States.
“Being America’s ‘nice neighbour’ won’t get us anywhere in this situation,” Candace Laing, president and CEO, said in a news release.
Laing said Trump’s intention to impose tariffs signals that the U.S.-Canada trade relationship is no longer about mutual benefit.
“To him, it’s about winners and losers — with Canada on the losing end,” said Laing.
Comments