As the trade war with the United States heats up, local businesses are preparing for the possibility of higher costs while Ottawa and Gatineau look for ways to strengthen economic ties closer to home. At Smudge Beauty Bar on Dalhousie Street, owner Mark Mignault says some of the products his business relies on are sourced from the United States. “I think it’s too early for the information to come to us directly, so all I can really do is prepare that costs are going to go up,” Mignault said. Manicure, pedicure and other beauty products are among the goods targeted by Canadian retaliatory tariffs. For small businesses like Smudge Beauty Bar, the uncertainty centres on which products could be impacted and how much those costs could rise. “We just have to prepare for it the best we can and decide if it’s going to impact consumer pricing and stuff at this point,” Mignault said. As Canada imposes new tariffs on U.S. goods, the mayors of Ottawa and Gatineau are looking to make it easier to do business across the river. The two mayors signed a new economic cooperation agreement Tuesday aimed at strengthening the relationship between the two cities and reducing trade barriers in the region. “We will work together again and again in the region to consolidate our economy, to create opportunities, to downsize the quantity of barriers that we have between the two provinces,” said Gatineau Mayor Maude Marquis-Bissonnette. Ottawa Mayor Mark Sutcliffe pointed to craft breweries as one example, saying breweries in Gatineau can face restrictions selling their products on store shelves in Ottawa. The agreement looks at economic development, transportation and tourism, while also pushing to have the national capital region recognized as a distinct economic zone. “We need to think of this as one economy, one economic zone so, we’re going to work with our federal and provincial partners to make sure that happens,” said Sutcliffe. While businesses wait to see how the escalating trade dispute will affect their bottom line, consumers are also watching for the impact on household costs. Some people who spoke with CTV News said they are concerned about higher prices but believe Canada needs to stand firm in its dispute with the United States. “I think it’s a terrible situation to be in and I think it’s going to affect a lot of families and livelihoods, but I think it’s ultimately important that Canada stands up to the U.S. and that we’re not bullied,” said Luc. Sutcliffe says he also plans to bring a motion to city council Wednesday to discuss other ways to protect the local and regional economy during the current period of economic uncertainty.
