REGINA, Sask. — The latest tariffs imposed by the U.S. on Canadian imports are impacting several notable industries and businesses in Regina.
In late August, the U.S. imposed 50 per cent tariffs on millions of Canadian goods, impacting several Saskatchewan products.
“We have the mineral products from our analysis that those are biggest trading shares for the United States, so those are going to take the most hit,” explained George Sakyi, chief economist at Economic Development Regina (EDR).
Other products impacted include chemicals, food oils and vegetable products, although Sakyi said Saskatchewan’s overall exposure is limited.
Last week, Premier Scott Moe said the latest tariffs cover 11.3 per cent of annual imports to the U.S.
But how are these tariffs affecting business costs?
Regina & District Chamber of Commerce CEO Mike Tate said Crazy Ape Extreme Equipment is facing significantly higher costs to import products and export its own goods.
“Their steel comes from the U.S., gets hit with a tariff when it enters Canada, and then is tariffed again as a finished trampoline when it is shipped back to the U.S. As an example, a $20,000 order could end up facing $10,000 in tariffs.”
Tate said this number doesn’t take into account the recent tariffs on Canadian imports or the 700 products the federal government will impose tariffs on for U.S. imports starting Sept. 8.
“This situation is ultimately harmful to both economies and businesses.”
However, not every Regina business is seeing changes from the latest tariffs, noted Tate.
“Degelman Industries said they have experience with this kind of tariff cycle and don’t expect a major impact this time around. Most of their finished goods have long been exempt, serving as a reminder that tariff exposure varies from business to business, even within the same sector.”
As each company assesses their situation, Tate said he worries for Canadian companies competing with each other to find new businesses in the country.
“Anytime companies are looking at other options, that could create new markets and have an impact on local markets, businesses and the economy. At the same time, our local businesses are also looking at other options.”
Those other options include trade diversification beyond the U.S., explained Sakyi.
“Seeing how trade is actually getting diversified to Europe and all of that. We are starting to actually ship products that we didn't use to ship to some of these areas.”
In the short term, both Tate and Sakyi recommended that businesses apply to the Regional Tariff Response Initiative, for which the federal government recently announced a new $1.5-billion investment administered by Prairies Economic Development Canada.
But Tate also said businesses need to prepare for the worst-case scenario.
“We have to understand Canada cannot accept the worst terms for the country, so businesses have to be ready for further countermeasures.”
This could mean dealing with tariffs for the next few years, but Sakyi is hopeful the government will continue finding ways to work around it.
“We have to ensure we can find a fiscal balance and continue to support those impacted while they work to resolve the matter.”
