An industry association representing more than 300 manufacturers in Manitoba’s agri-food sector says it is concerned about escalating protectionist rhetoric as Canada’s premiers consider how to respond to U.S. tariff threats.
On Wednesday, Justin Trudeau and 12 prime ministers, including Wab Kinew, signed a statement pledging to do everything in their power to prevent Donald Trump from imposing punitive tariffs on Canadian products. .
The president-elect of the United States has promised to impose a 25% tax on Canadian exports.
Ontario Premier Doug Ford said after Wednesday’s meeting that all options should be on the table as the country seeks retaliatory action. Danielle Smith, Alberta Premier, did not sign the final communiqué.
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Manitoba Premier Wab Kinew speaking to reporters before the start of the meeting with other Canadian leaders in Ottawa.
Photo: The Canadian Press / Justin Tang
Mr Kinew, for his part, said the meeting showed that the leaders were forming a united front.
Before the summit, he called for a long-term economic strategy highlighting Team Canada
and who makes Canada a country that rebuilds things again
.
But the possibility of a new trade war with the United States has some Manitobans worried.
Michael Mikulak, PDG de Food & Beverage Manitobaaffirms that the members of the association would be devastated
if Mr. Trump carried out his threat.
He sees the prospect of the two neighboring countries turning in on themselves as a danger.
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Michael Mikulak points out that most companies in the agricultural sector would have no choice but to pass the bill to consumers on both sides of the border if Mr. Trump follows through on his tariff threat.
Photo : - / Felisha Adam
We need leaders who have vision and who are able to communicate the value of […] internationalism, both in terms of trade, culture and diversity
maintains Mr. Mikulak.
We need strong international relations, and many of them are based on trade.
According to a provincial analysis (New window) (in English), 46% of Manitoba’s agri-food exports were destined for the United States in 2023. This represents $4.53 billion in goods.
Mr. Mikulak emphasizes that most companies in the sector generate a profit margin lower than the 25% brandished by the next American administration and that they would have no other choice but to pass the bill to consumers on both sides of the border. in the event that such a customs tariff materializes.
-He adds that even companies that don’t export to the United States will be affected by supply chain disruptions.
No one wins in a tariff war
Ryan Kuffner, president and CEO of the organization Economic Development Winnipeg (EDW), also believes that the imposition of tariffs by the United States could affect the Manitoba economy well beyond its exports.
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Ryan Kuffner believes that the context should allow Canada to better position itself for the future.
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He fears that foreign investments – often made in the province to gain access to the United States market
– dry up in the event of a tariff war.
Without this access, I fear that Manitoba [traverse] a freeze on investments.
Shiu-Yik Au, associate professor of finance at the University of Manitoba, says uncertainty alone is having an effect on businesses in the province.
The mere fact that it can cope with a tariff, he believes, will lead them to delay their investments, reduce their orders and the working hours of their employees
.
According to Mr. Au, if the next occupant of the White House follows through on their threats, Canada must retaliate.
The best approach, the professor says, is not to impose across-the-board tariffs, but to specifically target industries in Republican states where Mr. Trump draws most of his support.
Mr. Kuffner also believes that Canada must prepare to retaliate, but emphasizes that this economic confrontation should be seen as an opportunity to better position the country for the future
.
We must not just play defense, but also think that these are the opportunities for Canada.
He believes in particular that Canada should take advantage of the opportunity to encourage the purchase of local products and diversify its economic partners and develop its exports intended for the Mexican, European and Indo-Pacific markets.
Mr. Kuffner also believes that the country should also try to improve
his productivity and awaken his competitive spirit.
I believe that in the long term, this can be a great advantage.
With information from Arturo Chang and Catherine Moreau
