The ongoing trade dispute between Canada and the United States is causing uncertainty among businesses in Yukon. Talks between the two nations collapsed recently, leading to the imposition of 50% tariffs on $27.6 billion worth of Canadian goods by U.S. President Donald Trump. In response, Canada announced retaliatory tariffs, set to start on September 8, matching the U.S. tariffs dollar-for-dollar.
Various sectors such as steel, dairy, appliances, agricultural equipment, pulp and paper, electronics, and seafood are being impacted. Ryan Warner, the general manager at Duncan’s Mechanical Contracting and Custom Metal in Whitehorse, expressed that the tariffs have put his business in a state of confusion, potentially leading to increased costs or delays down the line.
Warner mentioned that his company has been diversifying suppliers by turning to Asian and European sources, as well as procuring equipment from Vancouver and Ontario. However, the ongoing trade tensions are causing project delays and significant cost hikes ranging from 10% to 100% for customers.
Philippe Vincent, the general manager at Klondike Welding, is also experiencing the repercussions of the trade war. He noted a 75% surge in raw material costs from suppliers in recent weeks, likening the situation to the unpredictability seen during the COVID-19 pandemic.
Marcos Castillo, chair of the Whitehorse Chamber of Commerce, highlighted that both consumers and businesses are grappling with escalating expenses. He anticipates that the trade conflict will persist until the end of the current U.S. administration, emphasizing the need for the Yukon to reduce reliance on U.S. materials to enhance economic resilience.
The federal government recently unveiled a $7.5 billion support package for affected businesses and workers, offering access to loans, financial programs, and more flexible employment insurance application procedures. While some view these measures positively, others like Warner believe that eligibility verification for government aid can be arduous for smaller enterprises with limited resources. Vincent expressed satisfaction with the support but hopes for additional government assistance to counter the rising costs of raw materials from suppliers.