New Brunswick exporters are taking stock of where their businesses stand with American customers following the 11th hour collapse of a trade deal between Canada and the United States. Saint John-based Moosehead Breweries said a 50 per cent U.S. tariff on Canadian beer would create “an immediate and serious challenge” for domestic exporters including its company. “We’ve been selling Moosehead in the U.S. for almost 50 years, and we’ve built an incredibly loyal American customer base, but navigating a 50 per cent tariff puts a massive burden on our ability to compete fairly in the U.S. market,” said the company in a statement. Moosehead said it wouldn’t shift production to a U.S. facility in order to bypass U.S. duties. “Moments like this highlight why supporting Canadian-owned and operated businesses matters,” said the company’s statement. From beer to baked goods, about 20 per cent of business at Sussex-based Mrs. Dunster’s comes from the U.S. Mrs. Dunster’s co-owner and CEO Blair Hyslop said the plan was to continue the bakery’s presence stateside while finding new markets. “We’ve been down to Mexico a few times, trying to open up some opportunities down there,” said Hyslop. “We’re also always on the lookout for potential acquisition opportunities. It’s really not about shrinking our U.S business because our U.S business is pretty robust right now. It’s really about making sure we’re not overly dependent on it.” Mrs. Dunster’s entered the U.S. market decades ago, with products available throughout the New England states. “We have some very loyal customers down there who have grown up on the brand, just as they have here in Atlantic Canada,” said Hyslop. “That business has been challenged over the last few years not because of tariffs directly, but because of the economic situation in the state of Maine and in New England in general. People don’t have as much money as they used to have, and their grocery bill is going up.” The federal government announced $7.5 billion in support measures for Canadian workers and businesses on Tuesday, along with counter-tariffs on hundreds of American products. Ron Marcolin, the divisional vice-president for Canadian Exporters & Manufacturers, said the disappointment of a thwarted trade deal does provide a bit of certainty on where things will go next. “We know the relief measures are very targeted, and will help bridge the gap,” said Marcolin. “That’s a very good and positive thing. We also agree with the retaliatory tariffs. We have to do that. We’re forced to do that. But it’s very important that Canada stands up and does that.” For more New Brunswick news, visit our dedicated provincial page.
