Trump tariffs would be terrible for Manitoba economy: MCC

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Donald Trump’s tariff threats are already sending shockwaves through Manitoba’s business community and would be a disaster for the local economy, the president of the Manitoba Chamber of Commerce (MCC) said.

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“We knew from what Trump had been saying that something might be coming, and we’ve been preparing for the possibility of 10% tariffs that Trump had previously talked about,” MCC President and CEO Chuck Davidson said on Thursday.

“But 25%, it’s fair to say it sent shockwaves through the business community, not just in Manitoba but across Canada.”

On Monday, President-Elect Trump, who will be sworn in on Jan. 20, threatened to impose steep 25% tariffs on goods imported to the U.S from Canada and Mexico and threatened he could do it on day one of his administration through executive order if those countries did not meet his demands regarding issues including border security.

Davidson said officials had already been “doing the math” to better understand what 10% tariffs could mean for the Canadian economy, as that is something Trump had previously threatened, but said no one was prepared for what Trump threatened on Monday.

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According to MCC, a 10% tariff on imported goods to the U.S. could cost the Canadian economy as much as $30 billion, while a 25% tariff could cost the Canadian economy between $70 and $75 billion.

With those threats now looming, Davidson said anxiety levels for both small and large business owners and those who trade with the U.S. are extremely high in Manitoba.

“The concern now is ‘what’s going to happen to my business because of this,’ and many are thinking the worst,” he said. “That is not an insignificant number. That would force some businesses to close or reduce staff to address those kinds of economic challenges.

“This would be extremely problematic.”

The MCC said they are now pushing for stronger communication between officials in Manitoba and Canada, and their U.S. counterparts, in the hopes that Trump backs off of his threats, and believe the key is for both nations to understand how important they are to each other.

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“I think there needs to be a better understanding from Americans and Canadians alike of the importance of our mutually dependent relationship,” Davidson said. “This is a huge concern from both a business perspective and from a U.S.-Canada relations perspective.”

The MCC also put out a media release this week after Trump threatened the tariffs, and said they are now calling on both provincial and federal leaders to take steps to strengthen economic relations with the U.S. before Trump takes office.

“This is a pivotal moment for U.S.-Canada trade relations. We can’t afford to sit on our hands,” the MCC said. “With the potential for significant economic disruption, we urge the Prime Minister and Canada’s premiers to prioritize this issue at the highest levels.

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“The need for the Government of Manitoba to strengthen economic relations with the United States and to capitalize on the opportunity to engage directly with U.S. policymakers has never been greater.”

The chamber is also calling for Manitoba to have a larger and more permanent voice in the U. S. when it comes to trade relations.

“Manitoba needs dedicated representation in Washington to provide our province with an influential voice in U.S. trade negotiations and to help advocate for issues critical to Manitoba’s economy, such as agriculture, manufacturing, and cross-border logistics,” the MCC said.

— Dave Baxter is a Local Journalism Initiative reporter who works out of the Winnipeg Sun. The Local Journalism Initiative is funded by the Government of Canada.

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