Proposed Trump trade tariffs would be 'crippling' to N.L. economy, Furey says
Trump could place 25 per cent tariff on all goods from Canada on Jan. 20
Newfoundland and Labrador Premier Andrew Furey says proposed tariffs by U.S. president-elect Donald Trump would be crippling for the province, and wants premiers across the country to be part of the team that stands up for Canadian industry.
Trump announced Monday that he plans to slap a 25 per cent tariff on all products entering the United States from Canada and Mexico if more isn't done to curb the flow of drugs and migrants across the U.S. border.
For a province like Newfoundland and Labrador, which Furey says does about 50 per cent of all of its trade with the United States, it's a grave concern.
"It's crippling. It's devastating to the economy of Newfoundland and Labrador," he told CBC News Tuesday.
Data collected by Statistics Canada in 2022 showed Newfoundland and Labrador exported $7.2 billion in goods to the United States that year.
Furey said some of the biggest players are industries like oil and gas, minerals, forestry and the seafood industry — and that the impact of the tariff would be felt across those industries.
In an emailed statement to CBC News, Association of Seafood Producers executive director Jeff Loder said the tariff would send ripples through the sector on account of more than 67 per cent of seafood exports going to the U.S.
Furey and other premiers have demanded a meeting with Prime Minister Justin Trudeau to discuss the potential tariff and its impact, which Trudeau has said will happen this week.
Furey said he plans to stress the importance of both a "Team Newfoundland" and "Team Canada approach," sharing the importance of preserving regional industry across Canada.
"We don't want to give up something to ensure that … the auto industry is protected to the detriment of the seafood industry," he said.
Energy N.L. CEO Charlene Johnson was unavailable for an interview on the topic Tuesday, but told CBC in an email that she supports Furey's efforts to address the tariffs to "ensure we can continue to export to a key trading partner and provide our lower carbon oil to the world's largest economy."
Furey said it's also important for American leaders to understand the impacts of the tariffs on their residents. For example, electricity from Newfoundland and Labrador is sent to places like Massachusetts from Hydro Quebec, which would result in a 25 per cent rate increase for rate payers in the state come January.
"It's incumbent on us across the country as premiers and leaders to ensure that that message gets through. And not just to the Trump administration," the premier said.
He told CBC News he's recently spoken with the governors of Vermont and Massachusetts to voice those concerns.
Tony Fang, an economics professor at Memorial University in St. John's, said he wasn't surprised to see a tariff floated out by Trump — but was surprised Trump landed on such a high percentage.
He said Trump could be trying to gain an upper hand in negotiations for the United States-Mexico-Canada (USMCA) trade agreement, which is up for review in 2026.
"It's really bad news, I would say," he told CBC Radio. "This is [a] really kind of lose-lose situation, because it would also hurt the U.S. economy as well, and it won't necessarily create jobs as Trump has promised."
Trump has said tariffs could be put in place on Jan. 20 — his inauguration day — unless he gets more co-operation on his border issue.
Furey told CBC News he was offended by Trump tying the tariff to illegal immigrants, saying the issue isn't unidirectional.
"It is not going to be cured by slapping a 25 per cent tariff on a pound of crab. I mean, that's just ridiculous."
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With files from Terry Roberts and On The Go