“An escalating trade war is never a good thing but we have to stand up to a bully.”
That’s from Prince George Chamber of Commerce executive director Neil Godbout after the US Government announced additional 50% tariffs on several Canadian sectors after a potential trade deal fell apart over the week.
Canadian Prime Minister Mark Carney is responding with dollar-for-dollar tariffs on American goods.
Godbout told MyPGNow.com workers and businesses end up being the biggest losers.
“It’s been a very long time since tariffs have been weaponized like this. Frankly, it’s not really a good idea because Canada’s response has been over the past year and a half is seeking out other trading partners and to trade more internally.”
Simply put, nobody wins in a trade spat of this magnitude.
“This is not a Canada-US hockey game. When we drop the gloves and get into a fight like this economically, people lose their jobs and businesses close down. Other things start to happen within the economy and that is not a good thing.”
Earlier this summer, the B.C. Chamber of Commerce issued a report on what sectors will be most impacted by American tariffs.
Canada’s counter-tariffs that arrive September 8th will raise costs for BC and local businesses that import goods and services from the United States.
“My optimism is tested every single day,”
B.C. Forests Minister Ravi Parmar didn’t mince words over his displeasure with his American counterparts over the additional 50% tariffs that are set to take effect on several sectors and products.
This includes a different section of our already reeling softwood lumber industry – this time President Donald Trump is targeting plywood and veneer, which help make doors and window frames.
“We have a president in the United States that is signing a deal in pencil and not in pen and change the world at anytime. That doesn’t serve the interests of forest workers or any workers in Canada and certainly with these now threat of Section 338 tariffs now in place.” said Parmar.
“The plywood and veneer sector, which is as a government, a pivot towards more value-added products in B.C. and now to have 45% tariffs and duties on our lumber sector to now have 50% tariffs on our plywood and veneer operators, it is devastating.”
“I have talked to many operators have stopped buying logs entirely. I spoke to a First Nation this morning who said a long-term purchaser, a veneer operator won’t be buying logs in the future until this situation gets sorted. I think that speaks to the uncertainty of the forest economy here in British Columbia.”
Parmar noted there are many in the veneer sector who are considering layoffs while others have a bit of a buffer given the work done prior to the lead up to the first deadline of tariffs, allowing product to get across the border before the 50% tariffs came in place, allowing for a little breathing room.
Other executives suggested if the Section 232 tariffs were rescinded, operations would restart in their log yards.
“It’s just a really s*itty time in the forestry sector right now and my heart goes out to all those workers paying the price because of this.” Parmar added.
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