Ottawa and eastern Ontario businesses are bracing for the possibility of tariffs with U.S. president-elect Donald Trump returning to the White House.
The 47th president has pledged to sign a flurry of executive orders on his first day, including an across-the-board tariff of 25 per cent on all Canadian imports. While it appears Trump will not be implementing the threatened tariffs on his first day in office as previously promised, businesses and the federal government say they are still preparing for all possible outcomes.
Tom Neumann, owner of Newman Tools in Ottawa, sells more than 30,000 tool parts with half of his clients in the United States.
“Tariffs are bad for everybody,” Neumann told CTV News Ottawa on Friday.
“I’ll see what happens, if it’s just baloney, or if it’s if it’s really going to affect us because 25 per cent really affects businesses profoundly.”
Border town mayors have also said the tariffs could have a significant impact on cross-border travel and have warned of a potential surge of asylum seekers, with mass-deportations being a part of Trump’s promises early in his next term.
“I think it’s something we’ll likely see once the tariffs are in place. I think it’s too early to really see that right now, but it’s something that we anticipate happening,” said Cornwall Mayor Justin Towndale last week.
Economic experts have warned of the devastating effects the measure could have on both countries, especially if Canada and the United States enter a trade war. Ontario Premier Doug Ford has warned it could cost the province up to 500,000 jobs.
Trump has said he intends to use tariffs for addressing perceived unfair trade practices, to raise revenue for the federal budget and as a negotiating tactic.
The Canadian government has said that they are ready to take on Trump and levy countermeasures, should Trump follow through with his threat. The government is readying a three-phased response it could begin rolling out as early as inauguration day, depending on what Trump does.
The United States is Canada’s largest trading partner, with the annual trade relationship between the two countries adding up to about $1.3 trillion. Canada is also the largest export market for 36 U.S. states.
Trump’s inauguration dominated news coverage across the globe, but some residents of Ottawa chose to ignore it Monday.
“We usually talk about politics or sports at the pub, but right now, we’re just not… nobody’s in the mood. It’s not my country but I mean it’s terrifying,” said Sara Ross at the Glebe Central Pub. “We’re just going to ignore it and then maybe tomorrow morning I’ll absorb it all.”
Others said they’re keeping a close eye on how Canada will be affected by another Trump term.
“Hopefully there won’t be too much fire for people day to day but definitely keeping an eye on things, how it’s going to affect us and the country, obviously with our own election looming as well, ” Ottawa resident Jeremy Salgo said.
“I believe he will impose tariffs; I think the tariffs are just the beginning because he’s capable of anything,” added Ottawa resident Dennis Bruneau. ”It’s as soon as it goes into his mind, he thinks it’s a good idea.”
With files from CTV News Ottawa’s Natalie van Rooy, Katelyn Wilson and Dave Charbonneau and from CTVNews.ca.
