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CBC
31-01-2025
- Business
- CBC
As N.L. officials chart tariff response, businesses and workers grapple with uncertainty
Businesses and workers across Newfoundland and Labrador are gearing up to face looming U.S. tariffs — and a turbulent future. David Haire, vice-president of the Newfoundland and Labrador chapter of Canadian Manufacturers and Exporters, said he hasn't seen layoffs, but the threat of tariffs has already created an uncertain business environment. "We've seen investments start to slow down. We see hiring starting to slow down," he said in an interview with CBC News. "I can tell you … the impact can be severe and we are taking this extremely serious." According to provincial government officials, more than a third of Newfoundland and Labrador exports go to the United States. Premier Andrew Furey has said the tariffs could impact more than 10,000 jobs. Haire says some companies are trying to get as much product into the United States as possible before the tariffs kick in. "They don't want to get caught with that inventory. So they're pushing it and in some cases they are discounting," he said. Jessica McCormick, president of the Newfoundland and Labrador Federation of Labour, says even if the U.S. government decides to delay the tariffs, the threat of tariffs by itself is having a "chilling effect" on investment. "It's going to have long-term consequences, not just for the four years that Donald Trump may be in office, but maybe beyond that," she said. Furey says all hands on deck Haire and McCormick are part of a roundtable of industry, labour and government leaders convened by Furey to discuss the tariff threat. Furey said he wants the federal government to offer a COVID-19-style relief package for industries impacted by the tariffs. : "I think that they have the ability, that they have levers, that provincial governments don't have," he said while speaking on Thursday to reporters. The provincial government is planning a formal buy-local marketing campaign in the coming days as part of what Furey calls a "team Newfoundland and Labrador approach." "We need to be making sure that Newfoundlanders and Labradorians, and Canadians at large, understand the products and what value they can bring to them," he said. Responding to disruption Some firms are jostling to replace American-made products with their own. Additive XL, a division of Atlantic XL based in St. John's, uses fine metal powders in 3D printing to make metal machine parts for companies in a variety of industries, including oil and gas, health care and mining. Pascal Milord, project manager with Additive XL, says his company provides a solution to supply chain uncertainty for some industries. "We're realizing how globalization [has] been a great thing when it works. When it doesn't work, things break," he said. Milord pointed to the widespread supply chain disruptions during the COVID-19 pandemic and the threat of U.S. tariffs as two examples of those threats. He says he believes Additive XL could replace materials sourced from the United States if the Canadian government implemented retaliatory tariffs. "We can provide a part that would typically take months from the supplier in Asia or elsewhere in North America, and we can reduce that into weeks, even days sometimes," he said. Trump's tariff plan still unclear As recently as last week, Trump has expressed concerns that lax security at the northern border is allowing an influx of fentanyl and migrants into the United States, though just one per cent of illegal drugs entering the country comes from Canada. On Wednesday, Trump's nominee for commerce secretary, Howard Lutnick, said Canada could avoid tariffs on Feb. 1 if the federal government does enough to increase border security. The federal government has announced $1.3 billion in extra border security measures. Lutnick acknowledged that Canada is taking action. "I know they are acting swiftly," he said of Mexico and Canada. "And if they execute, there will be no tariff. And if they don't, then there will be." Still, Lutnick said the Trump administration is looking several options for tariffs, and decisions will be informed by a trade policy study set to be delivered April 1. 'Throwing a grenade' Tom Cooper, a Memorial University business professor, says he expects the tariffs to impact some industries more than others. "The products that they're going to be talking about are what I would say [are] nice to have, not need to have," he said. The trade partnership between Canada and United States went through rocky patches during the first Trump presidency, but Cooper said tariff threats represent a new direction for a relationship previously built on cooperation. "There's been mutual trust and respect," he said. "What Trump has been doing is really kind of throwing a grenade into that mutual trust and respect."
CBC
30-01-2025
- Business
- CBC
Furey looks to federal government, buying local to help push back against possible U.S. tariffs
With U.S. tariffs possibly coming into effect as early as Saturday, Newfoundland and Labrador Premier Andrew Furey gathered industry and labour leaders to discuss responses, but many are still waiting on the federal government for a plan. On Thursday afternoon, Furey gathered dozens of industry association leaders and labour representatives to discuss a response to U.S. President Donald Trump's proposed 25 per cent tariff on Canadian goods, even telling them to have their cell phones close by on Saturday when the tariffs could come into effect. "This could be perceived as a strong attack on our sovereignty and independence and our national identity," Furey told reporters. "Because this will be the moment where people look back and say, 'Well, when did Canada change? Did we stand up? Did we meet the moment? Did we have the courage for future generations to protect the maple leaf?'" But instead of laying out ways the provincial government would support industries that stand to be impacted, Furey pointed to the federal government to formulate a "robust plan" to help. "They have levers that provincial governments don't have — they have monetary policies, they have different fiscal room, they have different fiscal instruments, different fiscal capacity — than we do, here, as a provincial government," he said. Furey said he'd like to see a COVID-19-style relief package as well as enhanced EI support and Marine Atlantic fees reduced. Sovereignty under threat Earlier this month, Furey said Trump's threats to use "economic force" to absorb Canada was a threat to Canada's sovereignty and was "unacceptable." In response to the tariff threat, the federal government announced a $1.3-billion border package, which includes sending drones to patrol the border as well as two leased helicopters. On Thursday, Furey said these border measures were good news for Canadians, but that it's a fallacy that Canada is exporting large amounts of drugs or immigrants into the U.S. — which is one of the reasons Trump's team suggested as the motivation for the tariffs. "That is not true. That is a bilateral issue. It's not a unilateral issue," said Furey. However, he said Canada should be establishing a strong border to protect Canadians and it enhances Canada's sovereignty. Buy local The provincial government will push a buy local campaign. It's expected to roll out in the next few days. However, local products can be more expensive and there is an ongoing rising cost of living crisis to contend with. Furey didn't say if there will be any relief cheques sent out. "We'll address the issues as they arise. Make no mistake, there will be an acute impact immediately on industries like the fishery, like the forestry industry," he said. He also said Newfoundland and Labrador needs to look at diversifying its trading partners, but didn't name any specifically the government was looking into. "In some way, the president has done us a favour in helping us look internally. Should we be relying on one single partner? These are incredible products that can be sold anywhere in the world." Heightened concerns Fish, Food and Allied Workers union president Dawn Street said members are worried about incoming tariffs, especially as it could impact collective bargaining. Last year, 90 per cent of Newfoundland and Labrador snow crab ended up in the U.S. Street said that's an amount that Newfoundland and Labrador consumers can't absorb, and that diversifying into new markets won't happen quickly. "We're really concerned what it's going to mean on consumer buying power in the United States. Snow crab is such a niche product and consumers will try to find cheaper alternatives," Street said. Energy N.L. CEO Charlene Johnson said the oil and gas industry is the most significant contributor to the province's GDP, accounting for 23 per cent. She said oil is unique because it can be shipped anywhere in the world and doesn't need to rely on one customer. However, she said if oil prices drop, that will impact production and would negatively impact the sector. "One thing that has really come to light with all of this, is the importance of energy security and how we should be producing more oil in Newfoundland and Labrador and supplying our lower carbon product to the world," Johnson said. With the economic uncertainty, Johnson argued it wasn't a good time for the federal government bring in an emissions cap, which she said would drive investment away. But PC Leader Tony Wakeham says the provincial government's approach is lacking. "What is the plan? Where is the concrete plan for each of these industries to say that here's what we're going to be doing going forward? It's nice to announce what you're going to do, but my question is what have you done?" he said. "That's the question that hasn't been answered and we've known about this since November." Wakeham agrees the federal government has to be a part of the solution.
