There is plenty of fear and uncertainty around the possible trade war with the United States despite delays being announced on Monday. Local industry leaders are still worried about the proposed 25 percent tariffs that were recently announced by US President Donald Trump.
“I guess there's a bit of disappointment, unfortunately, when something like that, with our largest trade partner happens, it's not the greatest thing for either economy,” said Aaron Martin, general manager of the Stratford and District Chamber of Commerce. “I was sad to hear that happened. But it was something that was speculated on, but we didn't know if it was just, you know, talk or it was something that was going to actually come into place.”
Prime Minister Justin Trudeau talked with his counterpart twice over the phone on Monday, and Trudeau was able to meet some of Trump's demands that resulted in a 30-day delay on the tariffs. The agreement will see Canada expand its existing $1.3 billion dollar border protection plan, list cartels as terrorist organizations, launch a new cross-border task force, release $200 million dollars more to fight drug trafficking and appoint a fentanyl czar. For many, it was a sigh of relief that Prime Minister Trudeau hit back with retaliatory tariffs, but local experts warn it could be a double-edged sword.
“We obviously have to do something, but the downside to that is, it will hurt,” said Martin.
Jamie Pritchard of the Stratford Business Improvement Association agreed, encouraging people to shop local now more than ever.
“The tariffs leave a lot of uncertainty; even though there is a 30-day reprieve, there is still that uncertainty which can create fear,” said Pritchard. “Our downtown small businesses are still feeling the pain from the pandemic. Results could be catastrophic for pricing, job losses, and inflation, but we as Canadians need to seize the opportunity to review our spending habits, read labels, become more Canadian educated and support locally-made and distributed products.”
The risks will be felt by all businesses if a trade war does end up happening, but some industry in Stratford could feel the biggest impact.
“The one right on the hop is manufacturing,” said Martin. "We do a lot of trade here with the United States. We do a lot of work for them. Everything from, you know, aerospace parts to car manufacturing parts all along the lines there, but it can even hit things like the distilleries and we have one distillery in town that actually sends quite a fair amount of product to the United States. And then obviously we're surrounded by agriculture here, which I think will also be impacted if it drags out for a long period of time.”
Experts say the possibilities of a trade war between two of the biggest trading partners will impact consumers on both sides of the border.
“I know that's one thing a lot of people are worried about right now,” said Martin. “If we have a downturn in sales with manufacturing goods or anything along those lines, obviously the factories have to do things to keep their lights on and keep things going. And sometimes that means running shorter amounts of shifts. So more or less jobs can be impacted. I know some people have looked at a bit of a hiring freeze at the moment, and then there's some even talking about layoffs just to keep the business afloat. And that's not just something that's on our side. This is something that's going to hit the supply chain from the other side of the border as well.”
The Chamber and BIA are advocating for people to shop locally.
“I believe in shopping locally. Shopping locally directly supports Stratford's economy by keeping money circulating within Stratford, creating jobs, fostering a vibrant downtown, and reducing the environmental impact by minimizing transportation needs for goods,” said Pritchard. “Money spent in a small shop stays in Stratford as the business uses it to pay local employees, use local services, pay local taxes, eat in local restaurants and more.”