Changing his mind once again, U.S. President Donald Trump temporarily paused tariffs on some Canadian products Thursday, but his latest decision has brought more uncertainty than relief for businesses.
“It’s good in the fact it’s granting our industry further reprieve in terms of facing these impacts, but again, the uncertainty, you can’t run a business on uncertainty,” said Chris McKee, executive director of the Atlantic Provinces Trucking Association.
McKee says a recent poll to its members revealed every single carrier member who responded has stated that tariffs will impact their business, but to what extent is unpredictable.
“We’re hearing from our members that in the face of these tariffs they’re putting a hold on capital purchases, on new employees, hiring, on updating their fleets and buying new equipment because they’re not sure how these tariffs are going to impact their business operations,” he said.
“So, while we have this continued uncertainty on a month-to-month basis, all of these decisions are being put on hold.”
The Atlantic Provinces Trucking Association represents over 320 members within the trucking industry and McKee says he’s talked to other sectors who are also frustrated by the situation.
“We really just would like to know what the impact is going to be and to get on with things,” he said.
“All we can do is really just wait and see. We’ve spoken with peers in other industries and other sectors and everybody’s in the same boat in terms of the unknown.”
Confusion causing concern for the economy: LeBlanc
Speaking in Dieppe, N.B., on Friday, Federal Finance Minister Dominic LeBlanc said there’s concern for the Canadian economy in light of the confusion.
“This kind of uncertainty doesn’t help people make the best business decisions they can, so that’s why the quicker we can get out from under this sort of patchwork quilt of American tariffs that are being applied, the better,” he said.
LeBlanc says while Canadians expect a firm response from the government, even its retaliatory tariff response is going to have an impact on the economy overall.
“We’ll continue to defend the Canadian economy and Canadian workers, but if Americans are willing to remove the tariffs until April 2 on the vast majority of exports to the United States, that’s important for the job security of Canadians and it’s important for Canadian businesses to have a chance to prepare if we can’t get to the agreement we want with the United States in a few weeks,” he said.
As of Friday, LeBlanc said Canada has not paused its 25 per cent tariff on $30 billion worth of exports from the United States, and that it is prepared to move forward with more retaliatory tariffs at the beginning of April if needed.
However, he pointed out this could be an opportunity for Canadian businesses to look at other options.
“Perhaps the urgency of this moment may give Canadian businesses and government leaders, federally and provincially, an opportunity to remove trade barriers within Canada, to help businesses look at other markets and diversify, so that may be a positive that comes from this uncertainty,” said LeBlanc.
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