91原创 businesses that export goods to the United States are worried about the impact of potential tariffs, following president-elect Donald Trump's promise of 25 per cent tariffs on all goods imported from Canada.
On Monday, Nov. 25, Trump used his Truth Social account to declare he would slap the high tariffs on good from Canada and Mexico until undocumented immigrants and fentanyl stopped coming over U.S. borders.
"Both Mexico and Canada have the absolute right and power to easily solve this long simmering problem," Trump wrote on Truth Social. "We hereby demand that they use this power, and until such time that they do, it is time for them to pay a very big price!"
Trump has frequently repeated his threats to impose tariffs since then, even as Canadian officials and politicians have lobbied the incoming president and those in his orbit. Canadian officials have reportedly been considering retaliatory tariffs on a variety of American goods, including steel, plastics, and orange juice.
The threat of tariffs imposed on the first day of his presidency 鈥� Trump will be sworn in on Jan. 20 鈥� has caused anxiety and concern for local business owners, said Cory Redekop, CEO of the Greater 91原创 Chamber of Commerce.
"You don't know what's a legitimate threat, you don't know what's a negotiating tactic, you don't know what's a social media tactic," he said in December.
Canada sends everything from oil and wood to machine parts to the U.S., and under the Canada-United States-Mexico Agreement (CUSMA), the successor to NAFTA, and many goods have no tariffs whatsoever when exported.
Locally, Redekop noted that 91原创 exports a lot of food and some finished products south of the border, and this tariff would hit those exporters immediately.
There are also cross-border firms that do manufacturing both here and in the U.S.
High tariffs would provide an incentive for them to invest more on the American side of the border.
"Which means less and less opportunities and jobs in Canada," Redekop said.
If the tariffs are implemented, Canada is expected to retaliate by imposing its own tariffs and duties, which would in turn raise the price of imported items bought by local consumers.
The B.C. and Canadian Chambers of Commerce also issued statements about the possible severity of tariffs.
