The strategy seems to be: Put forward a united front, while moving to protect economic interests.
With the U.S. expected to impose 25 per cent tariffs on Canadian imports on Saturday, businesses in B.C.’s border cities are bracing for the fallout.
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Despite the creation of an alliance of Canadian “border mayors” that includes a number in B.C., it’s unclear how much influence local governments can have on the looming trade war, say owners of several businesses that export products to the U.S. Instead, they are focused on protecting their interests, such as finding new markets and pushing for retaliatory tariffs to level the playing field.
“We do need a unified response,” said Baha Naemi, managing director of Cancorr, a Surrey company that produces corrugated sheet board that is used to make cardboard boxes and packaging. “I’m not sure there’s much that local politicians can do, but it is important to send the right message.”
Naemi said his company stands to lose hundreds of thousands of dollars each month if U.S. tariffs make his product more expensive. But he has some leverage because the paper industry in each country relies on the other. Canadian pulp is exported to the U.S. where it is made into paper before returning to Canada to be made into corrugated sheet board. Naemi exports some of his product to U.S. box makers.
“Because there is equivalent trade, reciprocal tariffs can help level the playing field,” he said.
Naemi said there will need to be close collaboration between Canadian manufacturers to find ways to remain competitive, particularly if the tariffs represent a lasting shift in U.S. policy. That could mean reopening mills so B.C. pulp doesn’t need to be sent south to be made into paper before returning to Cancorr’s Surrey facility.
Tom Sundher, owner of Sundher Group Timber and Wood Products, is counting on the quality of B.C. wood to open new markets for his custom-made specialty timber products.
“If my customers in the U.S. want the wood, they’ll have to pay (the tariffs),” he said. “We’ve got the finest timber on the coast in our hemlock, Douglas fir and cedar. Why should we give it away? If they don’t want it, then I’ll sell it to someone else.”
His company has been focused on finding new markets for several years, including China, India, Vietnam and the Middle East.
Sundher said the tariffs “don’t make sense to me” as they will drive up the price of products for U.S. customers.
To help soften that blow, Bud Ivey, owner of Ivey International, a Surrey company that specializes in environmental remediation technology, started a branch in Delaware the last time Donald Trump was president.
“The first time we saw this ‘Buy American’ attitude, we knew we had to act,” he said.
Ivey has also diversified to other countries, while ensuring his U.S. locations have two years worth of inventory.
“(U.S. President Trump) is a business person, and I think he likes to throw people off balance (and) make people nervous,” he said. “I haven’t seen so much fear in a long time.”
But, he conceded, “at the end of the day, if they want to harm us, they can.”
That understanding has been apparent in the responses of B.C. politicians. On Thursday, Surrey Mayor Brenda Locke was joined by Drew Dilkens, the mayor of Windsor, Ont. to discuss plans to advocate for the interests of border cities through the Border Mayors Alliance, a partnership of about 20 Canadian mayors.
About 20 per cent of Surrey businesses, including 113 import and export businesses and 900 transportation and warehousing firms, have trade ties with the U.S., said Locke, representing $2.8 billion in cross-border commerce each year.
“As the only city in Western Canada with two land-border crossings with the United States, Surrey faces significant risk. If these tariffs go into effect, we could see hundreds of local jobs at risk, significantly impacting Surrey’s economy,” she said.
There is also concern in at least one border city south of the line as well, with the mayor of Blaine, Wash., Mary Lou Steward, recognizing that a “trade war is the last thing both countries need.”
The mayor said her city benefits from Canadian tourists, as well as a cold storage industry geared toward the cruise ships that visit Vancouver.
“There certainly are industries for which more ‘Buy Local’ activity could be helpful, but not many of those are the products trading between Canada and USA,” said Blaine council representative Richard May. “Experts say that these tariffs will not pencil out well.”
But May said he was patiently awaiting “the actual outcome” of the discussion over tariffs “as the current president has had to reverse many of his sweeping orders and attempted changes due to constitutional limitations and pushback from the U.S. Congress and impacted groups.”
B.C. Premier David Eby said there has been chaos and confusion trying to understand “conflicting messages” from the White House, after a report emerged hinting the duties might be delayed for a month. Trump later said he was pressing on.
Eby said his new “war room” committee met Friday morning, and provincial officials were working closely with business and labour leaders, as well as First Nations and other stakeholders.
He said the meeting included discussions about strengthening B.C.’s supply chains, reducing trade barriers between provinces, and helping people buy Canadian-made products.
Eby told reporters during a video call that he hopes Trump listens to advisers about the harmful impacts of the promised tariffs, but B.C. is “ready for the fight” if the president’s plan goes ahead on Saturday.
It was “hard not to think that this uncertainty (from) the White House, the chaos that seems to be coming from there, is actually part of an overall strategy to destabilize key trading partners,” he said.
But rather than speculate, the premier said B.C. must prepare to support workers, families and businesses.
— with files from Canadian Press