New Brunswick exporters prepare for possible 25 per cent increase price on Canadian products sold in the United States if the president-elect Donald Trump follows through on his threat.
Darrin Smith, owner of JessEm Tools in Moncton, is one of the business owners now thinking about their future.
“More than 80 percent of our business is directed to the United States and there are alternatives. They could buy our competitors’ products. So if the tariffs go into effect and stay for a while, I can’t imagine Americans wanting to pay 25 percent more,” he said.
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He says if the tariffs are in place and last more than a few months, he will move his business to the United States or sell it to an American buyer.
Although he recognizes the impact either option would have on the plant’s 65 employees, he says he would have no other choice.
“It’s really a personal decision, because it will be my life and that of my family that I will decide,” he said.
“I feel bad for my team here if this comes true. But I’m no use to them by staying here and going bankrupt.”
An economist says New Brunswick would be in a particularly vulnerable position if Trump makes good on his threat.
Pierre-Marcel Desjardins affirms that the forestry, fishing and agriculture sectors would be particularly affected.
“About 92 percent of our international exports go to the United States. A 25 percent tariff would mean stopping most of our exports,” he said.
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