The trade dispute between Canada and the United States is not good news for businesses, says the chief executive officer of the Greater Charlottetown Area Chamber of Commerce.
Penny Walsh-McGuire is talking about the U.S. tariffs imposed on some Canadian steel and aluminum products and the Canadian government’s retaliatory measures.
“It’s not great for businesses trying to plan,’’ Walsh-McGuire said. “I was talking to a member who had already planned to expand and a lot of steel equipment going into their expansion, they’re already down that path and costs are going to be a challenge for what they thought was going to be a simple expansion. We are hearing (concerns) at different levels.’’
Most of the chamber’s discussions have been with the manufacturing industry and those talks have centred around the fact that the cost of production is going to go up as a result of this trade spat.
Companies, for example, that use aluminum for things like making cans or packaging are starting to feel the pinch.
Walsh-McGuire said she spoke to one contractor in the construction industry who told her another challenge now will be bidding on jobs.
“The prices are not staying consistent; they’re changing daily. That could range from a small construction company up to a larger mechanical contractor. They’re feeling daily increases on metal products.’’
The Atlantic and Canadian arms of the chamber, and thus the Charlottetown area chamber, support the Canadian government’s decision to retaliate against the U.S. tariffs.
“It’s obviously regrettable that it’s reached this point, especially with an important ally and trading partner like the U.S., but it is necessary, we feel, and our network feels, to defend the interest of business and our economy.’’
Walsh-McGuire said others are now looking to source steel from trade partners outside the U.S.
She added that there is still possibly another shoe to drop.
“What is still up in the air is the NAFTA negotiations and what it will mean for the dairy industry; for a number of industries. I think, generally, there’s a lot of holding our breath with businesses, particularly those who rely on inputs from the U.S. That, of course, trickles down.’’
