Southern Alberta business community wrapping its head around latest tariff delay

U.S. tariffs have once again been delayed, and the whirlwind of policy change is causing headaches for business owners in southern Alberta.

The trade war between Canada and the United States hit another pause Thursday afternoon.

It was announced the United States would not tariff goods compliant with the USMCA trade agreement until at least April 2.

That will still leave about 62 percent Canadian exports to the U.S. exposed to tariffs.

“We’re all suffering a little bit of whiplash here both in southern Alberta, but Canada as a whole and around the world. Everybody is kind of (asking) are there going to be tariffs or not? If so, how large?” said Trevor Harrison, a retired professor of political science at the University of Lethbridge.

It’s the latest wrinkle in what’s been a stressful few months for Canadian business owners.

The back-and-forth policy changes have made it nearly impossible to make any long term plans.

“If you’re a business owner, this uncertainty is very painful, right? It’s hard to plan from day to day. Are you able to export? What are you what are you having to be paying for? What is the paperwork look like? You know, this this uncertainty. Then the on again, off again kind of scenario is probably the worst-case scenario for business owners,” said Trevor Lewington, CEO of Economic Development Lethbridge.

Lethbridge business Lethbridge business owners stay calm and carry on as U.S. tariffs are applied and then removed on an almost daily basis. (Quinn Keenan)

Snap decisions

Snap decisions and sudden shifts have been the hallmarks of the first couple months of the Trump presidency.

While it’s still early this could be a glimpse of what Canadians can expect for the next four years.

Harrison said “this is not somebody who is engaging, it seems to me, in kind of rational planning. He just simply loves the spotlight of creating chaos.”

Chaotic environment

Business owners may have no choice but to deal with the chaotic environment.

While it’s less than ideal, they say there are steps that can be taken to lessen the blow.

“First of all, if you’re a business that exports, you need to really understand your supply chain. What products do you have? What are your components? Do you understand all of the rules that apply? So even if the rules change, you need to understand what applies to you and what doesn’t really -- understand your product, its composition,” said Lewington.

Canada will delay its second round of tariffs until April 2 as Ottawa works to remove all tariffs.