Manitoba biz leaders frustrated with tariff roller-coaster

Manitoba leaders are fed up — and trying to keep up — with U.S. President Donald Trump’s ever-changing trade war, including Wednesday’s pause of reciprocal tariffs on a swath of countries.

Original levies against Canada’s automotive, steel and aluminum industries remain.

“I’d like to see tariffs off completely or reduced,” Selkirk Mayor Larry Johannson said.

He drove past Gerdau’s steel mill in Selkirk Wednesday, he said, and semi-trucks loaded with product were leaving the yard. This, despite the continuance of a 25 per cent tariff on all Canadian steel and aluminum imports to the United States.

Manitoba exports continue to be hit by 25 per cent tariffs if they aren’t compliant with trade parameters of the Canada-United States-Mexico Agreement.

Levies on foreign vehicles, energy and potash are also impacting goods bound for the U.S.

“If we know where we’re at, and (the tariffs) are being left at this 25 per cent, at least it gives us a little bit of stability,” Johannson said. “However, stability isn’t really in President Trump’s vocabulary, because he can change his mind before the day is over.”

It’s a sentiment Johannson shared with executives from the Manitoba Chambers of Commerce and the Canadian Federation of Independent Business.

Uncertainty remains a major issue for local businesses, said Tyler Slobogian, the CFIB’s senior policy analyst for the Prairies and Northern Canada.

“The changes coming day after day are very frustrating,” he said, adding the decision to roll back reciprocal tariffs is “a step in the right direction.”

Half of the CFIB’s Manitoba members report being CUSMA compliant. Thirty per cent don’t know — it’s a “pain point” as they sort through paperwork and hustle to determine where their inputs come from, Slobogian said.

Opposition to U.S. tariffs seems to be mounting, including from within the southern country, noted the Manitoba Chambers of Commerce’s president.

“I think this, for a lot of businesses, has really been that wake-up call that they needed,” Chuck Davidson said.

Many firms are seeking new export markets and determining what makes sense for their operations, Davidson said. He called for a continued focus on internal trade barrier reduction and market diversification.

Mayor Johannson hopes to see Prime Minister Mark Carney require Canadian steel — including Selkirk’s — to be used in all federal infrastructure projects going forward. Premier Wab Kinew made a similar announcement for Manitoba projects in March.

Increased sourcing from the province has Johannson feeling “pretty optimistic.” And given the semi-truck traffic, it seems Gerdau’s Selkirk operation is still doing well, Johannson said.

The Trump administration has paused its reciprocal tariffs for 90 days but has opted to maintain a 10 per cent levy on nearly all global imports. Tariffs on Chinese imports, meanwhile, increased to 125 per cent, per Associated Press reporting Wednesday.

gabrielle.piche@winnipegfreepress.com