The president of the Manitoba Chamber of Commerce says Donald Trump‘s threat to slap a 25 per cent tariff on everything entering the U.S. from Canada is a “lose-lose for everyone.”
Chuck Davidson told 680 CJOB’s Connecting Winnipeg that experts were expecting a move like the one the U.S. president-elect has proposed, but they were looking for something considerably lower.
“The Canadian Chamber has done some work on this, and recognized that a 10 per cent tariff was going to cost the Canadian economy about $30 billion,” Davidson said.
“Well, when it’s 25 per cent. Do the math — it’s going to be significantly larger than that.
“This is a huge concern from a business perspective and from a U.S.-Canada relations persepective as well, and I think this really caught some a little off-guard.”
Davidson said Manitoba exports $15 billion worth of goods to the U.S. every year, and with tens of billions coming back this way as well, Trump’s proposal will squeeze businesses and put jobs on the line.
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“I think there needs to be a better understanding of the importance of that relationship from both sides,” he said.
“There’s close to 40 states that consider Canada — and in some cases Manitoba — to be their number one trading partners.”
Trump has said the hefty tariffs will stay in place until Canada and Mexico stop drugs and people from illegally crossing the borders.
Terry Shaw with Canadian Manufacturers and Exporters shares the opinion that the tariffs would have a devastating impact — on both sides of the border.
“This would impact the U.S. economy, U.S. consumers and U.S. manufacturers, just as well as it does Canadian,” Shaw told 680 CJOB’s Connecting Winnipeg.
“So it really is kind of a lose-lose situation if it does come to pass.”
Shaw said the current uncertainty around the tariff is not doing the economy any favours, and that if the president-elect does go through with the tariff, the Canadian government will have to respond with its own measures.
“We’re talking $800 billion in economic activity between these two countries every year — that we’re just going to throw a 25 per cent premium on.
“It’s incredibly damaging on both sides of the border, not only to manufacturers, but to consumers who need our manufactured goods.”
