Local businesses bracing for 'ripple effect' from global Trump tariffs

THUNDER BAY — Local businesses are “confused, uncertain, not sure what this means for them directly, not sure what this means for the Canadian economy, the global economy,” said Charla Robinson, president of the Thunder Bay Chamber of Commerce.

Newswatch asked Robinson what the chamber has been hearing from the business community at large about U.S. President Donald J. Trump’s recent trade policies.

Despite Canada being exempt from Trump’s 10 per cent global "reciprocal" tariffs, she said people here still expect to be hit with a ripple effect.

“Our products are so integrated. We have built a global trade system, and now, this is basically trying to dismantle that,” said Robinson.

For example, she said most electronics like smartphones and computers are imported into Canada from the U.S. but are manufactured overseas.

“Those all now have these massive tariffs on them, but then they're bought by a U.S. company that is now a supplier. So, what does that mean for computer prices for everybody?”

The new tariffs on international goods create further anxiety for local business owners.

“We do buy so much from the U.S., and maybe those products are made in some of these other countries that are impacted by these additional tariffs. So, it's really hard to kind of put your finger on exactly what's happening, but I think the underlying message is prices are likely going to go up. It's just a matter of figuring out how that directly will impact local businesses,” said Robinson.

Robinson said the recent announcement of 25 per cent tariffs on the auto industry will also impact Canada’s economy, specifically in Ontario.

“Even though Thunder Bay isn't perhaps directly involved in auto production, there's still expected to be a ripple effect because it is such a large part of our economy as a province. There still could be a ripple effect across Thunder Bay,” she said.

“I do know that there are some businesses in Thunder Bay that, while their business may be directly here in Thunder Bay and isn't specifically providing auto parts to plants, they are in some of their other branches across Ontario very much connected to auto parts and auto plants. So, there is definitely a feeling of concern around how that's going to impact overall operations.”

Currently, the back-and-forth tariff exchange between Canada and the U.S. has left Canadians paying 25 per cent tariffs on vehicles imported from the U.S. that are not compliant under the Canada-United States-Mexico Agreement.

On the U.S. side, Trump in imposing a25 per cent tariff on Canadian steel and aluminum and 10 per cent on energy.

Robinson said the chamber is directing businesses to government support systems like Export Development Canada and Trade Commissioner Service.

“We're trying to find the resources that businesses need and directing them to perhaps trade commissioners to local experts like Coal International that helps with those sorts of importing, exporting questions,” said Robinson.

“Those supports may be aligned to your specific needs and make sure that our businesses are able to take advantage of everything that's available."