Manitoba has ‘contingency plans’ in case of Trump tariffs: Kinew

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Manitoba’s premier says the province has “contingency plans” and “quick responses” in place should U.S. President Donald Trump impose sweeping tariffs next week.

As for what those plans include, the premier shared few details when speaking to reporters Tuesday.

“Our hope is that in the first instance, we can just preserve the trade relationship as it is,” Premier Wab Kinew said at a news conference in Brandon. “If things get to a more challenging position, we have a series of contingency plans in place to support your jobs and to support the Manitoba economy.”

In the hours following the inauguration Monday, President Trump suggested his administration could impose 25 per cent tariffs on Canadian imports on Feb. 1.

“We are thinking in terms of 25 per cent on Mexico and Canada because they are allowing vast number of people, Canada is a very bad abuser also, vast numbers of people to come in and fentanyl to come in,” Trump told reporters.

Officials, however, have suggested the president would only sign a memorandum telling federal agencies to study trade issues with an April 1 deadline.

Read More: Tariffs could hit Canada next week, Trump says

Kinew said the province is looking at a series of ‘quick responses” that he said would provide stability. He added he wants to strengthen the trade relationship with the U.S.

“If there’s a Trump tariff tax, that’s going to raise prices on consumers in the States, and I don’t think anyone wants that, right?” Kinew said. “We’re making that case really strongly.”

He said he will be joining a group of Canadian premiers on a trip to Washington D.C. on Feb. 12 to make that case.

Until then, the Manitoba Chambers of Commerce said the threat is damaging local businesses.

“At the end of the day, what we are hearing from businesses is that they are anxious,” Chambers Vice-President Elisabeth Saftiuk told CTV Morning Live.

“The real threat of tariffs has caused a great deal of uncertainty for Manitoba business owners, and even though the tariffs haven’t been implemented yet, this uncertainty that we’ve been dealing with for months can be and has been incredibly damaging.”

Saftiuk said the threat of tariffs can stunt growth, as businesses might hold off on hiring or pausing their expansion plans.

“It creates a holding pattern, which is not good for business and not good for our economy.”

Saftiuk said tariffs would hit Manitoba especially hard, as 72 per cent of Manitoba’s total exports head south of the border. This accounts for $18 billion worth of products exported to the States every year, she said.

“Manitoba, we know that we thrive on trade. It’s a really important part of our GDP,” she said. “We have about 1,800 companies in Manitoba who do export to the United States, so tariffs on Canadian-made goods severely harm this unique and collaborative relationship that Manitoba in particular, has with the United States.”

She said as the deadlines on tariffs loom closer, it is important to send a message to the U.S. underscoring the importance of this trade relationship.

“If we look at the manufacturing of an automobile, auto parts might cross North American borders up to eight times before the automobile is finally manufactured,” she said. “We share one of the world’s most integrated and mutually dependent trading partnerships.”

-With files from The Canadian Press