Despite the relatively lower impact of the newest U.S. tariffs on Canadian exports in Newfoundland and Labrador compared to other provinces, a business expert at Memorial University emphasizes that all decisions come with a price for consumers.
Tom Cooper, speaking to CBC News on Monday, highlighted that with existing tariffs and Canada’s retaliatory tariffs, the cost will likely lead to price hikes on certain goods, particularly American products or Canadian products made with American materials.
Cooper explained, “When you’re manufacturing goods, you need to import certain items for production. For instance, if you run a craft brewery, you rely on importing aluminum cans. If these aluminum cans come from the U.S., they will be pricier.”
He added, “The burden of tariffs falls on everyone. It’s not solely borne by the company; they must transfer the extra cost to the consumer.”
Following the failure to reach a satisfactory trade agreement between Canada and the U.S., President Donald Trump enforced new tariffs on billions worth of Canadian goods. In response, Prime Minister Mark Carney has pledged countermeasures.
While a wide array of products and goods are subject to tariffs, Newfoundland and Labrador is expected to experience the least impact on provincial exports, as essential commodities like oil, gas, seafood, and critical minerals remain untariffed.
Newfoundland and Labrador is largely shielded from tariffs affecting its exports, with just 0.4 per cent of goods sent to the U.S. affected by the latest round of tariffs. Nevertheless, as reported by CBC’s Max Baco, this shield may not prevent consumers from facing price increases on certain products.
Other items like electronics, gloves, mittens, paintings, and more will be subject to tariffs.