Brockville, Ont. company that exports to U.S. bracing for impact of tariffs despite 30-day pause

Border cities are bracing for a possible trade war. CTV’s Jack Richardson has more on how tariffs could impact an HVAC manufacturing company in Brockville.

Despite a pause on looming U.S. tariffs on Canadian goods, businesses in eastern Ontario that export to the states are still bracing for what could come.

Canarm Ltd. manufactures HVAC systems at their plant in Brockville, Ont. and about half of their products are exported to the United States, according to President and C.E.O Jim Cooper.

“We have to be able to compete in that market,” he tells CTV News Ottawa. “A 25 per cent tariff on someone that’s trying to ship into that market makes it impossible to compete. The margins aren’t that big.”

The Canadian-owned corporation has spent years building relationships with their customers south of the border, and Cooper thinks the tariffs would hurt them just as much as Canadians.

“They’re going to drive costs up and they’re also going to drive out good manufacturers from supplying the US market,” he says.

Since U.S. President Donald Trump’s inauguration, Canarm has considered opening a second manufacturing plant, only this one would be in the U.S.

“At the end of the day, we have a customer to service.”

Tariffs on Canadian goods and counter-tariffs on American imports were set to come into effect Tuesday, but late Monday afternoon Prime Minister Justin Trudeau said Canada and the U.S. have agreed to a 30-day pause.