Nova Scotia is bracing itself as U.S. President Donald Trump announced potential tariffs of up to 25% on Canadian goods, which could drastically affect its exporting businesses. This decision, prompting widespread concern among Nova Scotia’s major industries, came shortly after Prime Minister Justin Trudeau negotiated a halt to the implementation of these tariffs for at least 30 days.
The looming tariffs created trepidation across various sectors. Mike Hartery, co-manager of Port Hawkesbury Paper, noted, "We believe it is highly unlikely there will be any special carve-outs for the paper industry." The mill, which exports over 90% of its products, is still preparing for the worst as it waits to see what impact the tariffs may have on its American customers.
"It could be rather significant," Hartery highlighted, referring to how tariffs would inflate paper prices for U.S. clients and potentially lead them to reduce their orders from Canada. The mill, which previously faced tariffs from 2015 to 2018, remains cautious about the possible repercussions these tariffs could have on its operations and customer relationships.
Echoing these concerns, Osborne Burke, general manager of Victoria Co-operative Fisheries and president of the Nova Scotia Seafood Alliance, expressed alarm at the potential economic fallout, stating, "65% of our products end up in the U.S." The seafood industry, heavily reliant on U.S. exports, is actively working on diversifying its market reach. Burke, currently vacationing with family, mentioned he is seeking alternatives to spending money within the U.S., reflecting personal resistance against economic pressures.
During their annual general meeting, Forest Nova Scotia’s executive director Todd Burgess articulated the challenges faced by the forestry sector. "Forestry's been on a low for a couple of years now... how can it get any worse?" he questioned, emphasizing the industry's struggles compounded by hurricanes and invasive species. With the threat of tariffs, Burgess stressed the need for immediate support and innovative strategies to adapt.
The tone at the meeting shifted as participants discussed potential strategies to mitigate the risks associated with the tariffs. Robin Wilber of the Elmsdale Lumber Company noted the opportunity within Canada, arguing, "Canada is known worldwide for forestry... we should be able to avoid buying products from the U.S." This sentiment highlights the hope for greater self-reliance. "We don't have all the answers, but maybe solutions will come down the road," he added, conveying cautious optimism.
On the trade front, Premier Tim Houston's government is advocating for the development of local resources, which falls under the broader strategy to address the predicted impacts of the tariffs. This includes exploring avenues previously untouched, like uranium mining, which suggests serious government backing for resource development amid the uncertainties of international trade.
Notably, businesses are exploring interprovincial trade as the crux of overcoming these challenges. Ryan Manucha, from the C.D. Howe Institute, posited, "If we can reduce internal trade barriers, perhaps we can look at this situation as a springboard for improvement." This angle suggests the tariffs could inadvertently push Canadian provinces to harmonize their trade practices more aggressively, creating opportunities for Nova Scotia businesses.
Meanwhile, Karl Coutinho, president of Avondale Sky Winery, lamented the barriers within Canada. "It shouldn't be easier for us to ship wine overseas than it is to send to New Brunswick or Ontario," he expressed, drawing focus to the absurdity of current trading conditions within provincial borders. This need to simplify interprovincial trade rules resonates among many entrepreneurs eager to expand beyond their regional markets.
Medical device manufacturers echo similar concerns for smoother domestic trade practices. Chris Cowper-Smith of Spring Loaded articulated how variances among provinces complicate selling within Canada. "We need to grow our domestic economy, and these are precisely the kinds of things we need to do so businesses can thrive," he proclaimed. The implication here is clear: unity among provinces could be the key to weathering the coming storm.
Despite the uncertain future of trade relations, Nova Scotia’s businesses remain resilient, preparing for any outcome. With strategies being formulated and government intervention anticipated, businesses and their leaders believe the push for new markets and the resolution of interprovincial barriers could light the way forward.
Whether or not the tariffs come to pass remains uncertain. Nonetheless, the proactive measures being taken by businesses across Nova Scotia speak to their determination to adapt and thrive, even when faced with potential economic headwinds.