As U.S. President Donald Trump seemingly pulls out new and mutually damaging economic platforms on a weekly basis, local business experts are left scratching their heads.
Across-the-board 25 per cent tariffs on Canadian goods and resources entering the U.S. are on temporary hold, but he recently announced plans to add tariffs on Canadian steel and aluminum. This was attempted when Trump was in power in 2018 and it cost the U.S. economy billions.
Stuart McFadden, Cahtham-Kent’s director of economic development, said there seems to be little rhyme or reason behind what Trump is doing.
“Every day you wake up and wonder what he’s going to talk about and what the impact will be,” McFadden said. “It’s unjustified. There’s nothing about this (tariffs) that makes sense. Canada and the U.S. have had a great relationship for many years. Both countries prosper from it.”
McFadden said tariffs hinder business on both sides of the border. He’s not alone in that mindset.
“Tariffs are a lose-lose. They would raise business costs, reduce North America’s international competitiveness, and ultimately increase consumer prices at a time when Canadians and Americans are both struggling with significant affordability challenges,” Stephen Tapp, chief economist at the Canadian Chamber of Commerce, said in a media release.
Chatham-Kent is heavily tied to cross-border trade. Upwards of 1,000 jobs in C-K are connected to such trade, experts said.
“Chatham-Kent is deeply connected to the U.S. economy, as are so many communities across Ontario and Canada,” said Rory Ring, president of the Chatham-Kent Chamber of Commerce. “Disrupting this vital trade relationship through tariffs would have serious consequences. It’s not just about the big numbers; it’s about the jobs, businesses, and families here in Chatham-Kent that depend on cross-border trade. We need to strengthen, not break, these mutually beneficial ties to ensure a prosperous future for both our community and our trading partners.”
Trump has indicated he doesn’t need Canadian resources. McFadden begs to differ. Canadian lumber could help rebuild thousands of homes in Los Angeles in the wake of the wildfires. More than half of the petroleum the U.S. imports comes from Canada. And Canada provides electricity to millions of Americans.
One good thing coming out of all the economic sabre rattling Trump is doing is uniting Canadians.
“It’s causing us to rethink things, about being more self-sufficient,” McFadden said. “What we can do is buy local, buy Canadian and buy Ontarian,” he said. “Everyone gets buying local as a positive. You support your neighbour, your community, your province. I don’t believe Amazon sponsors a hockey team or a soccer team in Chatham-Kent.”
The economic threats could lead to more inter provincial trade, and increased trade to other nations.
“We have trade agreements with 70 countries. We need to look at those agreements to reduce our reliance on the Americans,” McFadden said.
