Manitoba Chamber of Commerce discusses U.S. trade with local businesses

Manitoba Chamber of Commerce president and CEO Chuck Davidson was in Steinbach last Thursday to discuss with local businesses the impacts of and solutions for a 25 percent tariff on Canadian goods anticipated for March 4.

Davidson said there was a general feeling of concern at the round table from the seven businesses that were there. “What businesses are continuing to do is they’re preparing for the worst and hoping for the best. At the same time they are trying to look at what kind of measures they’re going to need to continue to operate their businesses and look at new markets or how do I continue to keep the staff that (they) have.”

On Monday U.S. President Donald Trump announced that 25 percent tariffs will be imposed on Canadian goods, after a month-long reprieve. During a news conference with French President Daniel Macron, Trump said, “The tariffs are going forward on time, on schedule.”

The 25 percent tariff will double on March 12 on steel, aluminum, and some car parts, while the energy sector will only see a 10 percent levy.

“When you talk to our neighbouring states like North Dakota and Minnesota they don’t see the win for this. It’s just as problematic for them, right? Because they’re reliant and both of our economies have been very intertwined for a long time,” said Davidson.

In general, there has been a heavy reliance on trade with the Americans. Davidson said that 72 percent of all exports from Manitoba go to the United States. He estimated that was about $18 billion worth of Manitoba goods that cross the border into the U.S. every year. Comparatively, about $23 billion worth of goods come into Manitoba from across the border during that same time period.

“It’s unfortunate that we’re going down this path right now because again we’re hearing it from organizations like the U.S. Chamber of Commerce various organizations south of the border, they do not see how this is a win-win. This is a lose-lose situation. It’s a lose situation for Manitoba businesses, it’s a lose situation for Manitoba consumers, but it’s also a lose situation for U.S. businesses and U.S. consumers,” he added.

Davidson said the tariffs have reinvigorated national pride in Canadians where they want to buy Canadian and travel within Canada. That has sparked concern in the Americans he has spoken to as they’re afraid that Canadians won’t want to holiday in the United States and that they won’t buy American products.

While Canada has trade agreements with other countries such as Peru and South Africa, Davidson believes more money should be invested into infrastructure projects to get the shipments out of the country, such as in the Ports of Vancouver and Churchill.

Not only does Davidson believe that other markets beyond the United States need to be explored, but markets within Canada also need to be developed by eliminating provincial trade barriers.

He said chambers from across the province will be meeting with premiers in Toronto in two weeks to discuss how these barriers can come down.

“There is an appetite to move on that issue because we do view it as one of the things that we can control that will have a positive impact on the Canadian economy and the Canadian GDP and that it’s time for this to happen. That this is a barrier that we have created and that’s been challenging for businesses across Canada that it’s time that we take that down.”

In the end, Davidson believes that Canada should be looking at what it can control rather than focusing on what the U.S. is doing.

“We can control supporting local internal trade barriers, we can control looking at other markets, we can control making investments in infrastructure to get to those markets as well. That’s where Canada and the provinces need to spend their time focused is looking at the long-term game.”