After months of anticipation, Canadian products prices are expected to take effect on Tuesday, sending concerns over the business world of Manitoba.
The United States being one of the oldest and most important business partners in Manitoba, the consequences for business owners can be difficult.
“There are no winners,” explains Justin Copp, president of Brunswick Steel. “All this will do, it is increasing the costs for consumers, whether it is to buy a vehicle, to buy a good agricultural or anything. It will cost everyone in their pockets. »»
Brunswick Steel, which manufactures Manitoba agricultural businesses, faces a particularly unique challenge. Many COPP customers export their products to the United States, and new prices compromise their competitiveness on the market.
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“If there are customers who send their products south of the border and if there are prices on them, their product is no longer as competitive,” explains COPP.
The prices, which will increase costs for American consumers, effectively assess Canadian competition goods. This will have an impact on Manitoba companies, their finances and, above all, their employees.
“Government’s support should initially be the burden of layoffs,” explains COPP. “And that will happen if they have not already done so. Staff layoffs are difficult, and certainly no business wants to pass with it, but sometimes it is necessary in a weak economy. »»
From Tuesday, exports will face a price of 25%, with an exception for energy exports at 10%.
Tyler Slobogian, principal analyst of policies at the Canadian Federation of Independent Affairs, says that prices can be a major disturbance for small businesses.
“This could cause a lot of chaos for owners of small businesses who are already dealing with a kind of small margins or limited margins,” explains Slobogian.
“This could lead to less consumption expenses, it could lead to layoffs and end up in closures if governments do not act quickly.”
Slobogian and COPP both say that if commercial negotiations could continue, the interprorvincial trade should be priority.
“For some time, we have been calling governments to reduce interprotrovincial trade barriers that exist in Canada,” says Slobogian.
“You know, some owners of Manitoba companies have recently told us that it was easier to do international business than with our counterparts in Saskatchewan and Ontario.”
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