Derek Friesen, the owner of PhiBer Manufacturing Inc., expressed how the ongoing trade tensions between Canada and the U.S. had previously not impacted his agricultural equipment manufacturing business significantly, except for a few products affected by earlier tariffs. However, with the recent announcement of retaliatory Canadian tariffs on $27.6 billion worth of U.S. goods, the situation has changed.
The company, based in Manitoba, specializes in producing agriculture equipment, including dash trailers essential for large-scale farming operations. Previously, the frames for these trailers were imported from Iowa, but starting from September 8, these frames will be subjected to new retaliatory tariffs, causing concerns for Friesen.
Friesen expressed concerns that imposing tariffs on crucial components such as these frames would inevitably lead to a significant increase in the final product’s prices, making it challenging for farms to absorb the additional costs.
He anticipates that the tariffs would render these trailers, which constitute around 70 percent of his sales, economically unviable in the near future.
While some businesses are hopeful that the new countermeasures might boost sales within Canada, others are bracing for higher costs due to the escalating trade tensions.
- Considering the resurgence of the trade war, are you inclined to support Canadian products once again? Share your thoughts with us via email at ask@cbc.ca.
List of Newly Tariffed Items
Effective September 8, Canada will impose tariffs ranging from 15 to 50 percent on various U.S. products.
The new tariffs will impact a wide range of items, including seafood, specific paper products, furniture, clothing, tools, and motorcycles. Notably, products made of iron or steel, raw metals, paper products, and machinery parts will face the highest tariffs.
Bradley Saunders, an economist at Capital Economics, highlighted that the selection of items for tariffs appears to be strategic, aiming to minimize the impact on Canadian consumers and industries while hurting American businesses. Saunders emphasized that the overall effect of these countermeasures would be relatively minor, slightly boosting inflation, with government support measures likely offsetting a significant portion of the negative impact on business growth.
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