N.S. business owner surprised by tax of tariffs

A sheet metal business in Halifax is paying more than expected amid the ongoing trade war.

When Brian Carver took a close look at his invoices, he noticed something unexpected.

“They’re charging us HST on top of the tariffs,” said Carver, who runs Nova Sheet Metal.

The company fabricates duct work for ventilation units for homes and apartment buildings.

Materials come from suppliers in Quebec and Ontario who have imported it from the United States who have paid a tariff on the import. That cost is then passed down to Carver and it’s having a significant effect on his bottom line.

Since the trade war began, Carver has seen about a ten per cent drop in business. He says contractors and builders are putting projects on hold and those that are going ahead are costing him money.

“On top of all the tariffs and shipping we’re being charged HST on top of the tariffs, which is driving it up another 14 per cent,” Carver says. “I think the government should give us a break and not tax the tariffs.”

A recent invoice shows Carver paid $362 in tariffs and $429 in HST, totalling almost $800.

“Politicians, they got to get together here and understand that when tariffs increase prices, well, then sales taxes are going to take more money from either businesses or consumers, so I think what we have to see from all levels of government is further tax relief,” says Franco Terrazzano of the Canadian Taxpayers Federation. “We need to make sure that our businesses can survive here in Canada, that our Canadian businesses are competitive and that life is more affordable for Canadians.”

“We know that tariffs are bad for the economy, businesses and people,” said Heather Fairbairn, a spokesperson for the Department of Finance and Treasury Board, in a statement. “Nova Scotia is a harmonized sales tax province, which means that the federal government determines where HST applies and collects the tax on Nova Scotia’s behalf.

“Tariffs are applied to the price of imported goods and materials as decided by the federal government, under the Excise Tax Act. GST/HST applies to most imported goods and is calculated on the duty-paid value, including the purchase price and any applicable duties for the purchaser or importer.”

The United States and Canada have both had a 25 per cent tariff on steel and aluminum since mid-March.

Prime Minister Mark Carney and President Donald Trump have agreed to have a deal on tariffs within the next 30 days.

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