Manitoba budget will have tariff contingency plans

Jeff Keele reports on how tariffs will factor into Manitoba’s 2025 budget and what supports businesses want built into the financial blueprint.

The ongoing trade war with the United States has Evolution Wheel owner Derek Hird’s head spinning.

The Winnipeg company makes tires for farm and construction equipment, and 85 per cent of their products are exported south of the border.

“Well, my blood pressure medication started to kick in two days ago, so it’s got me feeling a little bit better,” said Hird. “But it’s difficult, we are in real uncertain times where you just don’t know.”

Hird said the threat of tariffs and retaliatory ones has the potential to significantly increase his costs.

“One day it’s fine, and there’s nothing that’s going to happen,” said Hird. “Next day you’re paying 25 per cent, and the next day you could be paying 75 per cent.”

On the eve of the provincial budget, Premier Wab Kinew is promising his government will lay out two financial scenarios, one without tariffs and one with tariffs. He said the second option will include supports for the economy and businesses.

“You’ll be able to see here’s what the books would look like if Trump wasn’t up to what he’s up to each and every day,” said Kinew. “And here’s the contingency plans in place to support our economy and support our jobs.”

The province has already announced some relief measures, including tax deferrals.

But Brianna Solberg, with the Canadian Federation of Independent Business, said more is needed. They’d like to see the removal of the sales tax on insurance products, equipment, and machinery purchases.

“This is intended to help stimulate investment at a time when U.S. tariffs threaten to disincentivize businesses from growing and/or expanding their operations,” said Solberg.

Terry Shaw, from the Canadian Manufacturers and Exporters, would also like to see an emphasis on skills training for workers and some form of tax relief as well.

“What kind of tax removals or other cost incentives can we use to help offset some of those tariff impacts?” said Shaw.

Hird said he doesn’t want to beg for anything, but he’d welcome the help if necessary.

“If you start seeing a 25 per cent tariff, well, that’s the equivalent of payroll. So how do you all of a sudden have two payrolls?” said Hird.