A total of 74 businesses in Prescott and Russell counties responded to a recent survey designed to gauge how the regional business community is reacting to tariffs in the United States on products imported from Canada.
Canadian-made steel being imported into the United States is currently subject to tariffs totaling 50 per cent, and Canadian-made automobiles are subject to a 25 per cent tariff when being imported into the US.
The survey, performed by the Prescott-Russell Development Corporation (PRDC), found that 50 per cent of the business owners surveyed were somewhat familiar with the recent tariff changes, and 49 per cent were very familiar. Among the business owners surveyed, 53 per cent said the tariffs had not directly impacted their business, 24 per cent said yes, and 23 per cent were uncertain.
The survey also found that 76 per cent of the businesses had not yet adjusted their prices to reflect the impact of the tariffs.
Businesses were asked if the tariffs have caused supply chain challenges for their operations. According to the responses, 66 per cent had not experienced delays or disruptions. More than half of the businesses, (54 per cent), indicated they are using a combination of absorbing the costs of tariffs, passing on the costs to customers, or are reducing operational expenses to mitigate the effects of the tariffs on their financial situation. Out of the total respondents, 35 per cent said they had chosen to pass the extra costs due to tariffs onto customers while 12 per cent said they chose to absorb the costs.
The survey found that 43 per cent of the businesses in Prescott-Russell are moderately dependent on other countries for goods and materials, 24 per cent are very reliant, and 32 per cent are not reliant at all.
At the present time, 58 per cent of the businesses said they had not made an adjustment to the budget due to concerns about tariffs, 32 per cent had made some modifications, and 11 per cent are revising their budgets extensively.
The survey also indicated there is not a high level of international competition involved for local businesses. A total of 77 per cent indicated they do not compete internationally.
Confidence about the ability to adapt to an economy affected by US tariffs varies in the survey. Among the businesses surveyed, 30 per cent were confident, and 50 per cent were somewhat confident about their ability to adapt, while 18 per cent were not confident.
PRDC Executive Director John Candie presented the highlights of the survey to United Counties of Prescott and Russell (UCPR) council on Wednesday, March 26. At that meeting, Russell Township Mayor Mike Tarnowski remarked how the tariff situation could have a major impact on industries in the region. There were no further comments or questions from council about the survey.
