Canadians are bracing for what the trade war’s next phase might bring, hours before what U.S. President Donald Trump is dubbing “liberation day” in that country.
Ron Marcolin, divisional vice-president of Canadian Manufacturers and Exporters in New Brunswick and Prince Edward Island, says the magnitude of economic uncertainty right now is unmatched in history.
“We have no comparables to something like this,” says Marcolin. “Canadian businesses, and obviously some worldwide businesses, have never experienced something as drastic as this.”
Marcolin says manufacturers have spent the last few months trying to build up inventories, increase production schedules, and export to the U.S. at a faster than normal pace.
“They’re talking a lot more to their suppliers, they’re talking a lot more to their clients, and also their employees,” says Marcolin. “I think they’re being very truthful with their employees. I think that’s a net benefit of all this.”
On Tuesday, the Conference Board of Canada Trade estimated 160,000 people could lose their job in the second quarter, pushing national unemployment up to 7.3 per cent. The board estimated half of the job losses would be in manufacturing.
Lisa Loughery, CEO of Brunswick Credit Union based in Saint John, says clients are anxious about the current uncertainty as well as the area’s recent designation of being Canada’s most tariff exposed city.
“What it is doing is causing our local companies to diversify,” says Loughery. “That doesn’t happen overnight. That takes a long time to put in place.”
Loughery says the already strong sentiment of buying local will likely only grow stronger and help businesses in the short term.
“Not knowing the firm details of what’s to come really impacts any type of a business that is planning expansions, large capital purchases, building large purchases for individuals,” says Loughery. “It’s really hard to plan when you don’t know what’s coming down the road.”
According to the White House, the tariffs will begin to take effect when Trump makes an address Wednesday at 5 p.m. A.S.T.
