Retaliatory tariffs cut ‘step in right direction’ toward hopeful talks

Tariffs have snaked their way through Food Fare — in the lemons, soups and organic cereals.

A California avocado cost close to $1 last year, store owner Ramsey Zeid said. Lately, he’s seen the price jump as high as $4.

The Winnipeg retailer joins many Canadian businesses paying fresh duties on American imports. But that’s set to change: Prime Minister Mark Carney announced Friday he’d repeal some 25 per cent tariffs on United States goods that fall under the Canada-United States-Mexico Agreement on trade.

Carney said he was assured by U.S. President Donald Trump the move would aid trade negotiations. The two spoke via phone Thursday.

Canada launched its tariffs in response to U.S. fees on Canadian exports. The southern country has placed tariffs on steel, aluminum, copper, autos, lumber, energy and items that fall outside CUSMA compliance.

Canada imposed tariffs on $59.8 billion worth of U.S. goods, from household items to steel, in March.

“At the end of the day, the average consumer is the one that’s affected,” Zeid said, adding fewer counter-tariffs will “help everybody out.”

He’s noticed shoppers veering away from U.S. products — partly because of a ‘Buy Canadian’ sentiment, but also due to higher prices, he said.

He’s halved some of his U.S. shipments and has begun stocking more Canadian options, like local yogurts and butter, at the chain of local stores.

“This was a big lesson for us and for probably most Canadians,” Zeid said. “We have to support Canadian-made products. The more we support them, the bigger they will grow.”

Forty-five per cent of the Canadian Federation of Independent Business’s Manitoba members import directly from the United States. Roughly 4,000 Manitoba companies are members.

“(Carney’s) decision is a step in the right direction,” said Brianna Solberg, CFIB director of legislative affairs for the Prairies and northern Canada. “It will certainly take some of the pressure off of Canadian small businesses as these trade talks continue.”

At least one-third of Manitoba small businesses feared closure in the next year if nothing changed in the Canada-U.S. trade war, preliminary findings from an August CFIB poll show (85 Manitoba businesses had responded).

Support for counter-tariffs appeared stronger during the conflict’s onset in early 2025, Solberg relayed. Lately, a minority of members say such measures should be in place.

“I don’t know that we’re ever going to get back to a zero per cent tariff,” said Chuck Davidson, president of the Manitoba Chambers of Commerce. “But the closer we can get, the better it’s going to be for Canadian and Manitoba businesses.”

He’s clocked businesses continuing to pause hiring and investments, and seeking markets outside the United States, as the trade war has unfolded.

“Our hope is that what the prime minister did (Friday), and the response that we’ve heard coming from south of the border, will get those discussions back on track,” Davidson said.

Premier Wab Kinew formed a U.S. Trade Council with Manitoba business leaders in January. The group hasn’t met formally since June, but they’ve received updates on Kinew’s interactions with fellow premiers and Carney, said Davidson, a council member.

“We’ve got to get the right deal for Canada, but it has to be one that creates that stability and certainty,” said Loren Remillard, Winnipeg Chamber of Commerce president and a fellow council member.

Canadian tariffs remain on U.S. autos, steel and aluminum. American tariffs on steel and aluminum expanded to hundreds more items this week. Agriculture implements, propane tanks and cutlery are among the additions, said Dennis Darby, president of the Canadian Manufacturing & Exporters.

Manufacturing accounts for roughly 10 per cent of Manitoba’s gross domestic product.

Darby said he hopes the removal of counter-tariffs will lead to the axing of levies still in place. “If not, it continues stress for manufacturers, and, obviously, we’ll continue to look to the government for support.”

— with files from The Canadian Press

gabrielle.piche@winnipegfreepress.com