Manitoba’s business community is weighing in on the potential impacts of the Canada-U.S. trade war.
The situation began in earnest Saturday, when U.S. President Donald Trump signed an executive order imposing tariffs on Canadian goods, set to take effect Tuesday. Later that day, Prime Minister Justin Trudeau announced counter-tariffs — to the tune of $155 billion.
Manitoba also joined other provinces — including Ontario and B.C. — in pulling American alcohol from provincially-owned liquor stores.
Tony Siwicki of the Manitoba Restaurant and Food Services Association told 680 CJOB’s The Start there are more questions than answers right now, and that he’s worried about the potential impact of pulling U.S. liquor.
“Producers don’t overproduce and they don’t underproduce, so we’re going to be in another supply and demand problem again, trying to make sure we have enough of the product,” he said.
“We’ve got lots of events going on — we’ve got weddings and socials, and everybody’s going to be racing to the shelves again, just like we did when COVID hit.”
For now, it’s a waiting game to see whether those U.S. products can be replaced, and how that might affect local establishments’ bottom line.
“(We have to find) out what we have as an option, what’s comparable, and of course price, so we’re going to be looking for help with making sure that we can afford the choices that we’re offered. It’s going to be tricky.”
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The move, Siwicki said, is also a problem for alcohol reps that work for American brands, many of whom he expects will lose their jobs.
The Manitoba Chambers of Commerce says the trade war could absolutely impact jobs in Manitoba, with large manufacturers and the agriculture sector potentially being the hardest hit.
“A lot of those goods that are going across the border on a daily basis are going to be the ones you think are going to feel the impact of this sooner rather than later,” said Chamber president Chuck Davidson.
“I think there’s still some hope as well that we can try to address them to a certain extent … there’s some hope that maybe some smarter heads will prevail.”
Davidson said his counterparts at chambers of commerce in the U.S., as well as American farm organizations are also pushing back, saying the imposition of tariffs will hurt Americans just as much as Canadians — and the long-term impacts of a trade war could have a serious impact on both countries.
“A 25 per cent tariff … how is that going to impact the average Canadian? It’s going to be about $1,900 extra per year. It’s going to cost every single Canadian, and so that’s going to have an impact,” he said.
“Businesses that are not going to be able to move forward, or they’re going to have lost contracts or sales … they’re going to have to make decisions locally as well. Do they have to reduce their workforce? Do they have to lay people off? Do they have to close their doors?”
Davidson said the average Manitoban should do what they can to buy local and Canadian products.
The tariffs will be top of mind at a Manitoba trade show taking place this week in Beausejour.
Manitoba Agriculture’s Terry Buss told The Start it’s difficult to know what, specifically, attendees at Tuesday’s Brokenhead River Agricultural Conference will be talking about, because the situation is so fluid — but the event’s timing is right for conversations around the trade war to take place.
Buss said the U.S. is a major customer for Manitoba farmers, but they market to areas around the world as well.
“We are competitive on the world stage because we are efficient, and we’re on the bleeding edge of operating at the maximum productivity and the lowest cost, and doing that in a way that’s sensitive to our customers’ wants and desires,” Buss said.
“Events like this allow us to bring together an educational opportunity and to bring together all the industry suppliers that interact with farmers.”
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