Kamloops businesses, exporters brace for ripple effects as 50 per cent U.S. tariffs loom

“Fortunately for us, CUSMA has held up for the most part,” Dickson said. “For our products coming out of the plant here in Kamloops into the United States, they have not been affected to date.”

However, Dickson explains that exemption cannot be taken for granted.

He said a 50 per cent tariff imposed without warning could force a manufacturer to absorb the cost, operate at a loss-of-profit or even walk away from some of its American business partnerships.

“If we were seeing 50 per cent tariffs overnight, we’d be having a tough time absorbing that cost,” Dickson said. “It could result in either having to reduce our manufacturing capacity and loss of jobs, or trying to survive while this gets negotiated.”

Even without being directly targeted, Progressive Planet is already navigating the uncertainty created by the ongoing trade dispute.

Dickson said there remains a likelihood that American distributors may become reluctant to place future orders with companies when they don’t know whether the tariffs will change their costs, or what prices they will eventually have to charge their customers.

The unpredictability surrounding the circumstances can also make it much more difficult for businesses to predict their cash flow, secure assisting finances and even in determining how much they can invest in the future growth of their corporation.

“We’ve actually seen our United States business grow, which in turn is great,” Dickson said. “But if we see tariffs, we’re obviously more exposed now than we were even a year ago.”

Venture Kamloops Executive Director Jim Anderson said the economic impact wouldn’t be limited to companies that ship their products directly across the border.

“You don’t have to be a service provider, a truck driver or component manufacturer that actually exports to the United States to be affected by tariffs,” Anderson said. “The companies that you supply to who eventually export to the United States will be affected by tariffs. You will be affected by tariffs, and the people who work for you will be affected by tariffs.”

Anderson said Kamloops’ diverse economy is a factor that could help dilute the wider community impact. However, that would offer minimal comfort to businesses that are directly caught in the tariff netting, particularly companies in sectors such as forestry that have already faced duties and other trade barriers.

If an exporter’s product arrives in the United States with a price increase of 50 per cent, Anderson said its customers could demand a lower price or worse, look for another supplier.

That would leave any Canadian producer with two primary options: reduce its operating costs or find customers in other markets, shutting the door to an American trading relationship all together.

“Those are not immediate fixes,” Anderson said. “Those are long-term business planning items that need to be addressed over a strategic period.”

Anderson said Venture Kamloops will continue working with local companies directly affected by any new tariffs. While Kamloops may be in a position to weather the broader economic storm, he said some businesses could still face difficult adjustments periods if the tariffs remain in place over the long term.

One fix? Buy Local!

“There’s also the opportunities within Canada to buy Canadian and support our Canadian manufacturers and businesses,” Anderson said. “As much as it’s been challenging, I think we’ve seen Canada come together as one to support ourselves as best as we can.”

by Jeremy Russo

Kamloops businesses, exporters brace for ripple effects as 50 per cent U.S. tariffs loom

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