On Saturday, February 1, US President Donald Trump announced that a 25 per cent tariff on all goods entering the US from Canada would take effect on Tuesday, February 4. On Saturday evening, Prime Minister Justin Trudeau announced that Canada is responding with a 25 per cent tariff on $155 billion in American goods entering Canada. However, after a tense series of discussions between the Prime Minister and the President, and high-ranking officials from both countries, the US agreed late in the day on Monday, February 3 to delay the introduction of any tariffs for at least 30 days. In response, Canada, and provincial governments agreed to withhold any retaliatory tariffs and other economic measures for the same amount of time.
Local industries are cautiously watching to see how the US tariffs could affect their business.
METEC Metal Technology Inc. in Vankleek Hill fabricates and manufactures a variety of custom and precision metal products and machinery, including equipment for snow removal, street cleaning, aircraft, and other made-to-order products. METEC Vice President of Operations Marc Walz said the company will be impacted by the tariffs.
“METEC exports approximately 25 per cent of our products to the United States. This figure increases yearly as we gain more customers in the USA,” Walz said.
However, METEC does not purchase many materials from American suppliers.
“On the other hand, we do not purchase a lot from the US since most of the material comes from Canada,” remarked Walz.
He added that every dollar counts in the industry, which means American customers will not be pleased about tariffs.
“Our customers in the US would not accept tariffs as we are in such a competitive market.”
Walz said the tariffs will affect plans for growth at METEC.
“We are making large investments this year in order to create jobs and grow our team at METEC to keep up with the demand for our products and services. These tariffs would impact our plans and schedule,” he said.
The consumer response to the US tariffs has been swift. Many area residents are sharing advice on social media about which products are totally Canadian in origin and manufacture. Stephanie’s Grill and Bar in Hawkesbury announced on Sunday, February 2 that it had removed all American wine from its inventory. The Liquor Control Board of Ontario (LCBO) announced it would remove all American products from its stores, and would no longer distribute American products to bars, restaurants, and grocery stores. The Société des alcools du Québec (SAQ) also announced it would remove American products from its stores. However, the governments of both provinces announced on Monday that they would delay the decisions because of the 30 day pause announced by the US on Monday.
In the days and weeks ahead, watch The Review for further information on how you can support Canadian companies by purchasing Canadian products.
