Tax deferrals coming, other measures to follow as Manitoba fights back against U.S. 'economic attack': Kinew
U.S. products pulled from Manitoba Liquor Mart shelves after Trump's 25% tariffs came into effect Tuesday
Manitoba Premier Wab Kinew says the province will continue to roll out additional non-tariff countermeasures "to stick up for Manitobans and to stick up for Canada" if tariffs imposed by U.S. President Donald Trump that came into effect Tuesday persist in the coming days.
Kinew made the comments at a news conference Tuesday afternoon, where said he wanted to share a "message of unity" as he touted announcements his government made earlier in the day to offer tax deferrals to businesses in the province and pull American products from liquor stores in response to Trump's tariffs.
"As humble and as friendly Manitoba as we all want to be, when a fight finds its way to us, we're a nation of hockey players. We know how to handle ourselves," Kinew said, flanked by members of the Manitoba NDP caucus outside the legislative building, which earlier in the day had had a giant Canadian flag affixed overtop its front entrance.
"And so we know that when it is time to have a good scrap, Canadians and Manitobans are ready. But our first and foremost responsibility is always to protect our children and our grandchildren and to protect our families."
In response to questions from reporters, Kinew said he would have more to say soon about countermeasures "to stand up against this unjustified aggression" from Trump in a number of areas, including some related to preventing U.S. companies from winning provincial contracts and others related to hydroelectricity and procurement.
"When you're in a struggle with a larger adversary, you have to use leverage. And so the leverage that we have as Canadians is our unity. It's looking at those natural resources, it's looking at energy," Kinew said.
"And it's using all of those tools in a smart fashion, which doesn't necessarily mean using them all on Day 1. We've got to play the long game here as well."
Kinew, who called Trump's tariffs "an economic attack on this country," said the tax deferrals for provincially administered taxes like the health and education levy and the retail sales tax will mean businesses can keep more cash on hand to keep people working "and keep our economy moving through this period of uncertainty."
Businesses affected by the tariffs will have the option of deferring payments of both the provincial sales tax and the health and post-secondary education tax levy — commonly called the payroll tax — for at least three months. Kinew said the change will start with the February tax period and continue for three months before it's reassessed.
The payroll tax charges employers a percentage of their payroll. Businesses with payroll of less than $2.25 million a year are exempt.
The premier said he supports measures taken by other levels of government in response to the tariffs, including the federal government's retaliatory measures and the decision by other provinces to remove liquor from the U.S. from the shelves of their provincially run liquor stores — something Manitoba has done too.
"The good news about this is that the Canadian booze is way better than the American stuff," Kinew said. "And so this is one sacrifice that I think everybody from coast to coast to coast can get behind."
The ban on U.S. liquor is expected to affect about six per cent of products sold by Crown-owned Manitoba Liquor & Lotteries, including 409 spirits, 341 wines and many beers and other products. The ban only applies to products made in the U.S., not to U.S.-based brands such as Budweiser that are brewed in Canada.
On a call with Canada's other premiers earlier Tuesday, Kinew said he also extended an "open invitation" to use Churchill's upcoming shipping season this summer "as proof of concept to show how we can diversify reaching international markets."
"Let's be serious about Trump-proofing our Canadian economy, including accessing international markets through tide water in Churchill," he said.
While Kinew said he's been hearing support from counterparts in the U.S. over the past weeks, as Trump has threatened to impose tariffs on Canadian goods, he said now's the time for those supporters to start raising their voices.
"Now we need loud allies, not quiet allies," Kinew said.
"We need people to join us in the fight against Donald Trump's tariffs and to voice what the impacts are going to be on the pork producers in Iowa, what the impact is going to be on the businesses in North Dakota that rely on cross-border shopping, on folks who depend on Canadian energy and Canadian minerals to power the steel mills in Pennsylvania."
WATCH | Manitoba Premier Wab Kinew's Tuesday afternoon news conference:
Meanwhile, the City of Winnipeg said in a news release on Tuesday that officials have been working to understand the financial impacts the tariffs will have on the city, as certain capital projects and procurement areas could be affected.
The city is co-ordinating its approach with the provincial and federal governments to align procurement strategies and advocate for solutions that protect municipal operations and economic stability, the city said.
The city strategy includes a new tracking process for U.S. purchases, updating tenders and contracts and regular public reporting to the city's standing policy committee in order to ensure transparency, the news release said.
Locals buy Canadian amid 'dumbest trade war in history'
Several Winnipeg residents CBC spoke with Tuesday said they've already been making a point to buy Canadian goods over those from the U.S., and those efforts will be even more of a priority now that Trump's tariffs are in place.
Dorothy Bennett said she hopes to see the tariffs removed soon, because the resulting situation is going to be "a mess" for people on both sides of the border.
"Hopefully the people on the border towns will yell enough and maybe something will be done," Bennett said, calling for people in the U.S. to contact their elected officials with concerns about their country's tariffs.
David Navratil said the situation "seems like the dumbest trade war in history," echoing comments made by Prime Minister Justin Trudeau earlier Tuesday.
"The flip side of this is it's going to change the relationship between Canada and the United States. I mean, I feel like it's permanently changing buying patterns, which can't be good for the United States in the long run," Navratil said.
"I don't know what their long-term strategy is, but I don't get it."
He said he hopes to see more action taken by the Canadian government to stop people in the U.S. from trying to buy up Canadian businesses and properties if the country's dollar is driven down.
Navratil said he also hopes to see action taken at a Manitoba level — whether it's big, like the province working to break down interprovincial trade barriers, or something even smaller.
"Maybe the Winnipeg Jets can stop selling American beer and just focus on locally brewed beer," he said. "Even if it's a little bit more money, I think everybody would appreciate even small things like that happening."
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With files from The Canadian Press