Islanders concerned about uncertain economic future, even after tariff pause
'It was going to break a lot of relationships that we spent the last 20 years building'
With close to $1 million worth of product in the yard, Trout River Industries staff questioned how they were going to tell customers they would need to pay 25 per cent more if U.S. tariffs came into effect.
The P.E.I. company, like many others, was relieved by the 30-day pause on tariffs announced by Prime Minister Justin Trudeau on Monday.
"It was going to break a lot of relationships that we spent the last 20 years building," said Harvey Stewart, chief innovation officer of Trout River Industries, a live bottom trailer manufacturer in West Prince.
Despite the tariff reprieve, many Island businesses remain concerned that U.S. President Donald Trump could decide to hit Canadian goods with an import tax in the future.
"We can't wake up at the end of the month and say, 'Oh, here we are again,'" Stewart said.
Trout Rivers Industries is now considering switching to suppliers in Europe and Western Canada, and using different shipping companies that will redirect through Halifax instead of through the U.S., he said.
"We have to survive. There's 115 families here that we've got to make sure they're looked after."
Treading lightly
When it comes to managing the issue of tariffs, some Islanders say Canada needs to tread lightly with the U.S.
"It's really difficult to know exactly what the end game is for the U.S.," said Aspin Kemp, the CEO and CTO of Aspin Kemp & Associates, which designs and develops products for the marine and offshore industries.
Ottawa should be focused on "not trying to escalate the situation, but being firm," said Kemp.
"So far, I think that's happened."
Some Canadians have taken measures into their own hands by opting to buy Canadian in the face of Trump's proposed 25 per cent tariffs.
The pro-Canadian sentiment is "wonderful," but it doesn't mean people should exclude products from countries that Canada enjoys good trading relationships with, said Russ Mallard, president of Atlantic Beef Products and chair of the Canadian Meat Council.
"Maybe just temper our enthusiasm a little bit by the realities that many countries enjoy Canadian products, many companies in Canada absolutely depend on shipping to other countries and we have to make sure those trading relationships don't get damaged while we deal with the president of the U.S.," Mallard said.
"It's important to remember that we have trade relationships with other countries as well."
If the "escalation of bad relations" with the U.S. has revealed anything, it's that Canadian exporters need to look for new places to send their product, he said.
It's certainly a concern when it's easier to conduct business with certain states than it is with certain provinces.— Dan Kutcher, Summerside mayor
Summerside Mayor Dan Kutcher said he expects Canada's volatile relationship with the U.S. will continue for the foreseeable future.
"We need to make sure that we are prepared as a municipality with how we spend our dollars, where we source our goods and services from to make sure that we insulate ourselves as best we can should those tariffs materialize," he said.
Finding new trade partners doesn't necessarily mean looking outside of Canada, Kutcher said.
"We, as a country, need to be breaking down these archaic interprovincial trade barriers that have stymied trade between provinces," he said. "It's certainly a concern when it's easier to conduct business with certain states than it is with certain provinces."
With Premier Dennis King set to meet with Canada's first ministers on Wednesday, Kutcher said he hopes they will move that idea forward.
King said Tuesday he hopes to continue the momentum that the premiers have built up to this point.
"A reprieve is not total relief," he said.
"While we can rest for a second and maybe catch our breath and enjoy… a small victory for now, we remain equally as concerned as we were prior to that [pause] as to where this all stands and what the future looks like."
The province is continuing to work on gathering information on potential funding relief programs for Islanders should the tariffs go into effect, King said.
"We will have to just sort of keep at the ready should we need to make an immediate response to a situation that I guess — to put it very diplomatically — is extremely fluid and almost minute by minute."
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With files from Wayne Thibodeau