Some Calgary companies are trying to cope with the new trade reality.
Steel, aluminum and auto tariffs remain in effect but Canada didn’t get hit with anymore American tariffs on April 2 but some Calgary businesses are feeling the affects due to the impact on supply chains.
Most of the steel and aluminum Calgary company All Metal Manufacturing works with comes from the U.S. and most of its products are sold back to the United States, so navigating the potential impact of the trade war is tricky.
“What has tariffs? What doesn’t? What’s covered by CUSMA (Canada-U.S. - Mexico Agreement)? What isn’t? it’s very hard to deal with,” said Chad Spicer, the owner and general manager of All Metal Manufacturing.
A hydrovac boom shipped to the United States in February came with tariffs around $200.
The same part shipped in March came with tariffs around $17,000.
“We thought we knew what our costs were, then we get hit with $17,000 in tariffs,” said Spicer. “How do we quote that to our customer? How do we account for that? How do we make up for that? It’s hard.”
Tariffs on other countries are making a difference too.
About a third of the inventory at medical equipment supplier Advantage Home Health Solutions is manufactured in China, then sent to an American distributor, before coming to the store in Calgary.
“I don’t understand the reasoning behind tariffs,” said Phil Hochhausen, owner of Advantage Home Health Solutions.
“I understand the rationale,” he said, “but I don’t think it’s valid. And I’m disappointed that we’d have to raise our price just because of that.”
Customers of The Sentry Box will likely have to pay more too, since most board games are made in China, then shipped to U.S. companies, before getting distributed to places like the popular Calgary game store.
“We can eat some of it, but you can’t lose money forever,” said Gordon Johansen owner of The Sentry Box.
“We’re looking for alternative sources for some stuff,” Johansen said. “We may have to just change things because some of the U.S. companies are going to go out of business because of this. I
“t’s going to devastate the whole industry in the (United) States,” he added. “So we’ll see what happens.”
Losing business is also a concern for Calgary’s construction industry, with the supply chain so heavily integrated with the United States.
“Uncertainty is costing more in the long-term than tariffs because cancellation of projects,” said Bill Black, president of the Calgary Construction Association. “It could lead to contractors being forced to take risks and then have to absorb the financial impact down the road.”
Businesses expect a bumpy road ahead.
U.S. President Donald Trump has said there is the potential for more tariffs and possible counter tariffs from Canada which both add more uncertainty and potential costs for businesses.
