U.S. tariffs on Canadian exports threaten free trade and economic growth — so Canada must act now, says the Greater Niagara Chamber of Commerce.
“We're vulnerable,” said CEO Mishka Balsom.
U.S. President Donald Trump imposed a 25 per cent tariff on Canadian goods on March 4, which prompted Canada to introduce retaliatory tariffs on the same day. Additional U.S. tariffs remain uncertain. In a March 5 media release, the chamber encouraged Canada to prioritize interprovincial trade, starting with provincial governments removing trade barriers.
Trade standards need to be aligned, inspections streamlined and rules standardized, to cut red tape, lower costs and improve efficiency and competitiveness, the chamber said. Balsom said Niagara-on-the-Lake residents can help.
“I think Niagara-on-the-Lake has a wealth of local products and local businesses to support,” she said. “We consciously can go out and make those choices.”
Whether people support a bakery, coffee shop, or restaurant in town, or choose a NOTL wine from the menu, it will make a difference, she said.
“When we make those kinds of choices, we, at the same time, also support our Canadian economy,” she said. “It can really critically impact the well-being and in the interim time, the sense of uncertainty.”
North-south trade has shaped Canada’s infrastructure, but if east-west connections are improved (as in, between Canada's east and west coast economies), this presents major growth potential, she said.
“Canada's a resource-rich country,” said Balsom. “What are some of the products that we can actually create here?”
The chamber’s proposals include a unified electrical grid, a coast-to-coast pipeline and transnational rail networks. As global relations shift, Canada has a chance to strengthen its position internationally, with new economic and diplomatic possibilities emerging, the chamber said.
“We have an opportunity to diversify our industries,” said Balsom.
“And the partnerships that we have.”
The chamber suggested the next Canadian government launch a royal commission to explore how to navigate these changes while protecting sovereignty and boosting the economy. Many of Canada’s free trade agreements are underused and the government should invest more in the trade commissioner service, the chamber said. It also recommended providing funds to help businesses shift imports and exports from the U.S. to other foreign markets, which would especially benefit small exporters.
Balsom said the Canadian government should thoughtfully reinvest revenue from tariffs to help businesses hurt by U.S. tariffs, into regulatory improvements and business-friendly policies.
“With the money collected, let's put our efforts into those areas,” she said. “Thoughtfully.”
New tariffs will cost more than the revenue raised, the chamber said, as will investments in inter-provincial trade infrastructure, which likely rules out tax cuts or a budget surplus (a situation where the government has more revenue than expenses).
However, the right policies can reduce the impact. About eight years ago, the Greater Niagara Chamber of Commerce convened a cross-border coalition of chambers of commerce, which covers Canada’s busiest land crossings: Hamilton, Windsor-Essex, Chatham-Kent and the Buffalo-Niagara Partnership. This coalition represents 5,065 organizations and 430,000 workers.
The chamber also launched a trade and tariff support page this year, with updates and resources to help businesses. They continue to deliver news through daily emails and web posts too. It also hosted a podcast with Stephen Tapp, chief economist of the Canadian Chamber of Commerce, where they discussed the impact of tariffs.
The Greater Niagara Chamber of Commerce has scheduled more expert info sessions for the future and said it will do everything in its power to ensure the success of Niagara’s businesses.
Paige Seburn is a Local Journalism Initiative Reporter based at The Lake Report.