Canadians are dealing with a looming threat of proposed tariffs and a ticking clock as U.S. president-elect Donald Trump takes office in three days.
Canadian politicians are outlining a plan to counter any possible tariffs, with everyone in agreement that Trump’s stated plan could have a devastating impact on Canada and the National Capital Region.
Inauguration day is Monday and it’s not clear how quickly this could go into effect. Premier Doug Ford warned this week about the economic impact of tariffs, stating that it could lead to half a million job losses.
In Ottawa, local businesses are preparing for all possible outcomes.
At Newman Tools, owner Tom Neumann sells more than 30,000 tool parts, with half of his clients in the United States.
“Tariffs are bad for everybody,” said Neumann. “I’ll see what happens, if it’s just baloney, or if it’s if it’s really going to affect us because 25 per cent really affects businesses profoundly.”
Neumann says he’s prepared to weather the storm if Trump goes through with the possible 25 per cent tariff on all Canadian imports, but it will be costly.
“We’d have to advise people that we’re shipping it from Canada, and they have to be aware that there’s 25 per cent tariffs,” he said. “I don’t know what to do. I mean we can add 25 per cent and prepay the tariffs. I don’t have a solution right now.”
As Monday looms, the Canadian government is ready to respond with retaliatory tariffs on American goods.
If the tariffs and counter tariffs take effect, it would be the biggest trade war between the two countries in recent history and a serious threat to both economies. Neumann trying not to stress about it going into the weekend.
“Wait and see,” he said. “You can plan all you want and then everything changes.”
