Local businesses in Canada, like Dainty Foods located in Windsor, Ont., are grappling with increased costs due to the ongoing trade war between Canada and the United States. Dainty Foods, Canada’s sole rice mill, is seeking an exemption to avoid the counter-tariffs imposed by the Canadian government. Since early March, the company has been subject to a 25% tariff on rice imports from the U.S., part of the $30 billion worth of goods targeted by Canada in response to U.S. trade actions.
According to CEO James Maitland, Dainty Foods relies on the U.S. for 80% of its rice imports. Without an exemption, the company faces the prospect of reorganizing its entire supply chain, potentially leading to the discontinuation of certain business lines. Maitland emphasized the importance of securing the exemption to sustain the company’s growth trajectory.
Plans for a $40 million facility in the U.S., expected to generate 250 jobs, are currently on hold as Dainty Foods navigates the impact of tariffs. Another local business, Cavalier Tool and Manufacturing Ltd., is also considering applying for an exemption following reciprocal tariffs on aluminum and steel imposed by Canada.
The Department of Finance Canada is processing remission requests, offering relief through programs like the Duties Relief Program and the Duty Drawback Program. While the timeline for exemption approval remains uncertain, businesses are urged to provide the necessary information specified by the government.
Despite the straightforward nature of Canada’s exemption process, Maitland expressed the significant stress caused by the ongoing trade war, leading to health issues and operational challenges. He acknowledged the prolonged nature of the situation, anticipating a timeline of six months to a year for resolution and emphasizing the need for resilience to mitigate the impacts on businesses.
