As U.S. President Donald Trump continues with his tariff threats, they could have big impacts on local businesses and the community. The White House announced 50 per cent import duties on goods ranging from vehicles to alcohol to dairy products, expecting to take effect in August. The Trump administration says the new measures are in response to provincial bans on U.S. liquor, Canada’s supply-managed dairy system and quotas on certain U.S. vehicles - the economy being thrown into a tizzy. Graydon Lau, co-founder of Quayle’s Brewery in Oro-Medonte says the newly announced tariffs by Trump is sitting in the back of all business owners’ minds here at home. “When the first set came around with aluminum and other goods, we were affected with our hops and our aluminum cans. We didn’t take up our pricing on our beer at all and we eat the difference,” says Lau. “We’ve got a good supply of cans right now, so we are okay, but as the saying goes, we’ll cross that bridge when we get to it.” The new tariffs are expected to come into effect in mid-August and Trump says they are intended to level the playing field amid what he calls Canada’s discriminatory treatment of crucial American exports like cars, alcohol and dairy. “Upwards of $20 billion of Canadian goods are going to be tariffed 50 per cent coming from Canada to the U.S.,” says Ashley Kalyn Peacock, an international trade consultant with Peacock Tariff Consulting in Orillia. Peacock says the latest threat by Trump could be devastating for many. “It’s going to significantly affect Canadian business,” says Peacock. “Margins are going to collapse if this goes through.” District Chair of Muskoka Jeff Lehman, also an economist, says he is watching how things play out very closely. “Fifty per cent tariff obviously makes our products very, very expensive in the U.S. When it’s 10 or 20 per cent, there is some offset with the currency difference,” says Lehman. “For example, I’ve heard that from industries in Simcoe County and Muskoka that Canada’s currency advantage, our dollar has helped offset this. Unfortunately, when you get to 50 per cent, that math just isn’t going to math anywhere.” Tariff consultants seem to agree this may be a rough time for many Canadian businesses with little relief in sight for the short-term. “Tariffs go up in an elevator and come down the stairs so we will be incurring this for quite some time,” says Kyle Peacock with Tariff Consulting. “This can turn the lights off for many, many Canadian business owners,” says Ashley Kalyn. All eyes are focused on Honda amid speculation of them closing up shop and moving south. However, in statement to CTV News, Honda of Canada Manufacturing says that it will not be affected by the newly announced tariffs. “Honda’s Canadian manufacturing will not be affected by the newly announced tariffs. Our Alliston facility remains flexible with more than 4,000 associates producing the Civic and CR V at full capacity to meet customer demand.”
