U.S President Donald Trump will not be placing tariffs on Canadian exports, at least not on his first day in power.
Canada, as well as many border states, are relieved.
“Thirty-four sates wake up every morning and look to Canada as their number one customer. This is not win-lose, right, this is lose-lose for U.S. and Canadians,” says Rhonda Tulk-Lane, Atlantic Chamber of Commerce CEO.
It’s unknown what the possible tariffs could look like and if Trump plans to target specific goods or to hit all industries.
“We are estimating that individuals will feel an impact of these tariffs $1,900 every Canadian annually and $1,300 for every American,” says Tulk-Lane.
“When you look at the trade with the U.S., it’s about 65 per cent of the trade that comes out of Canada and the same with Nova Scotia, that’s how close we are to 65 per cent of trade. The next biggest number is 10 per cent with China and then two per cent down the road. We kind of describe the U.S and Canada, it’s a relationship,” says Mitch Raymond, Canadian Manufacturers and Exporters Nova Scotia Division vice president.
According to the Atlantic Chamber of Commerce, 99,678 jobs in Atlantic Canada depend on exports to the U.S. and 2,133 of companies export to the U.S.
“The biggest exports would be like food products, so seafood, agriculture, then its stats for number two is Michelin Tires quite honestly, then we get into a lot of wood products, could be packing for example,” says Raymond.
“When we look at each of our four provinces , New Brunswick has the most at stake, they have the largest two-way trade with the U.S. And we are looking at fuels, fish and wood, really key things. Atlantic Canada, we have quite the abundance when it comes to natural resources, so these are the things that are going to be most affected, are critical minerals,” says Tulk-Lane.
The majority of the region’s goods are sold to the U.S. The Atlantic Chamber of Commerce states the value stands at $36.6 billion annually. The top trade states are Maine, New Jersey and Massachusetts.
Ron Marcolin with the Canadian Manufacturers and Exporters says tariffs could be disastrous for New Brunswick.
“Over 90 per cent of our goods are export goods, the vast majority go to the U.S,” says Marcolin.
According to the Atlantic Chamber of Commerce, the top Atlantic Canadian exports are mineral products, which are worth $14.1 billion, followed by animal products worth $3.1 billion and prepared food and beverages worth $1.8 billion.
