Disappointment mixed with cautious optimism, resolve in Manitoba as Trump makes good on tariff threat

Manitoba business and labour leaders expressed disappointment Friday after U.S. President Donald Trump hiked his tariff on many Canadian goods to 35 per cent, bringing further economic uncertainty.

They remained hopeful ongoing trade talks between the two countries will strike the right deal for Canada’s economy.

“We were hoping to avoid this escalation in our current trade tensions with the U.S.,” said Winnipeg Chamber of Commerce president and CEO Loren Remillard. “We remain confident, in time, we will find common ground with the U.S. administration. The most important thing is getting the right deal for Canada, not necessarily getting it done right now.”

Trump increased the tariff (on imports not compliant with the Canada-U.S.-Mexico Agreement, or CUSMA) after a deal wasn’t struck before a deadline he imposed.

Manitoba Federation of Labour president Kevin Rebeck agreed no deal is better than a bad one for Canada.

“I think there are a lot more businesses that are watching this with great uncertainty and unease, and that’s not good for anyone, but we can’t let the U.S. just dictate a deal that’s only good for them and hurts our economy,” he said.

“I’m glad our prime minister (Mark Carney) is working towards a deal that puts Canadians first.”

Rebeck said tariffs are hurting both countries’ economies, with about 200 Manitobans — largely in the steel sector and some in food production — on work-sharing measures or laid off.

Alan Arcand, the Canadian Manufacturers & Exporters’ chief economist, said the U.S. is Manitoba’s No. 1 trading partner, with 80 per cent of the province’s exports going to its southern neighbour.

Manitoba’s exports to the U.S. were down by 30 per cent between January and May, he said.

“That’s definitely a huge problem for the Manitoba economy,” Arcand said. “It’s been a challenge the entire year, and increasing the tariff rate from 25 per cent to 35 per cent adds on to those difficulties.”

Arcand said CME supports the federal government’s decision to “remain firm” and pursue a better deal.

Canada’s automotive, steel, aluminum, copper and softwood lumber industries have been most affected by the trade war, he said.

In Manitoba, the advanced manufacturing sector could be among the most affected by the increased tariff, Remillard said.

He said a vast majority of Manitoba’s exporters is compliant with CUSMA and therefore will not be subject to the increased tariff, but a significant percentage will be impacted.

Remillard said he expects eligible companies that haven’t filled out the necessary paperwork will make a “significant move” to become compliant in the coming days.

He said Trump’s changing trade policy has had a chilling effect on business. Arcand said it has been nearly impossible for businesses to plan.

While some groups or politicians encouraged Ottawa to retaliate, Remillard said the Winnipeg Chamber of Commerce is hoping “calmer approaches” by the federal government continue, and it doesn’t take any action that will hurt Canadians.

All levels of government should provide supports or resources to affected sectors to help them weather the storm, he said.

Trump already applied 50 per cent tariffs on steel and aluminum imports. The move left the steel-producing city of Selkirk, just north of Winnipeg, bracing for potential impacts.

“You just can’t do business at a 50 per cent tariff. It’s just out of the question,” said Mayor Larry Johannson, who’s been monitoring Brazil-based Gerdau SA’s steel mill in Selkirk.

“Every time I go by there, I’m looking at the yard to see how many employees’ cars are parked there, and how many trailers are there loaded with steel and ready to go.

“Of course, it’s been very, very busy before this latest increase to the tariffs. We were seeing a lot of double trailers loaded with steel coming out of the mill.”

Johannson said he saw some trailers — destination unknown — ready to go when he drove by Friday morning.

“We’re seeing back and forth in there, and that’s a good thing. Honestly, as mayor, I just can’t see doing business with a 50 per cent tariff,” he said. “Fifty per cent tariffs is not a fair rate. It’s a ludicrous rate.”

When Premier Wab Kinew visited the mill in March, he said the Manitoba government will source Canadian steel for all its infrastructure projects and relevant equipment purchases.

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Johannson, whose father and grandfather worked at the mill, is hoping that approach is mirrored across Canada.

“We want Manitoba steel to have equal opportunity in any projects in Canada,” he said. “We can supply the steel.”

In the meantime, Johannson wants negotiations between Canada and the U.S. to be “ramped up.”

“We have to get (the tariffs) down,” he said. “I wish I could lock the door until they come out of there with a good deal that is beneficial to both.”

chris.kitching@freepress.mb.ca

Chris Kitching
Reporter

Chris Kitching is a general assignment reporter at the Free Press. He began his newspaper career in 2001, with stops in Winnipeg, Toronto and London, England, along the way. After returning to Winnipeg, he joined the Free Press in 2021, and now covers a little bit of everything for the newspaper. Read more about Chris.

Every piece of reporting Chris produces is reviewed by an editing team before it is posted online or published in print — part of the Free Press‘s tradition, since 1872, of producing reliable independent journalism. Read more about Free Press’s history and mandate, and learn how our newsroom operates.