N.S. businesses brace for 'double whammy' tariffs

U.S. tariffs plus Canadian retaliatory tariffs has some industries affected at both ends

Some Nova Scotia industries say they're hoping for a correction to Canada's retaliatory tariff list or a remission program as they face tariff impacts from the U.S. and at home.

The Nova Scotia Seafood Alliance said it was "somewhat blindsided" when Ottawa announced seafood would be included on the dollar-for-dollar counter-tariffs on $27.6 billion worth of U.S. goods. The measure is in response to the new 50 per cent tariffs being imposed on Canadian goods by the U.S.

"We're disappointed to see ourselves included in this without having the benefit of being able to advise our federal government colleagues about what the implications may be and how we might have better tuned this list," Kris Vascotto, executive director of the Nova Scotia Seafood Alliance, told Radio-Canada on Tuesday.

"But I understand it was undertaken at fairly short notice to develop it and implement it and hopefully there is going to be some room for correction."

Vascotto said the Canadian and U.S. seafood sectors have a strong, integrated relationship. He said Canada imports about a billion dollars worth of fish and seafood from the U.S. every year and that "pretty much every single item that we import" was on the retaliatory list. This includes raw materials from the U.S. that get processed in Canada and then get exported back as seafood products.

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"If our strategic approach has tried to encourage more domestic consumption, it would seem that it would be more appropriate to not necessarily put the raw product on that tariff list, but actually to put the finished product on there so we’re still trying to understand some of the approach and rationale behind it," he said.

Vascotto said when the retaliatory measures come into effect on Sept. 8, it is going to "generate some significant cost pressures for those producers and is going to end up with them having to make some very hard decisions about whether they keep their doors open for the rest of the season or not."

For its part, Ottawa is rolling out $7.5 billion to help workers and businesses weather the new U.S. tariffs.

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In Hantsport, N.S., officials with CKF Inc. — the makers of Royal Chinet paper plates and other items like egg cartons — said they're concerned about getting tariffs from both the U.S. and Canada.

Like the seafood sector, CKF also imports some of its raw materials for its products from the U.S.

"That's a big concern of ours that if the retaliatory tariffs include raw materials that we use, we're going to be hit in what's called a doubly whammy because we'll be having to pay on raw materials coming in and some of our products going out we may be paying on," said Peter MacDonald, CKF's director of sustainability and external relations.

'Everyone pays more with tariffs'

MacDonald said the company is supportive of Ottawa's tariff actions, but added the federal government needs to be aware that companies could be adversely affected if they're getting hit at both ends.

He said there should be remission.

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"The reality of any tariff is that the U.S. consumer will ultimately pay more because either the customer does pay for the duties or they buy it from a U.S. supplier who will raise their prices because there is an opportunity there. Everyone pays more with tariffs," MacDonald said.

Possible remission of tariff requests

Premier Tim Houston told Radio-Canada in an email on Tuesday that the province is reviewing how the list of retaliatory tariffs will impact specific businesses and sectors here.

"We appreciate that the federal government is remaining flexible and willing to consider remission of tariff requests," Houston's statement read.

Houston said the province will continue to support the seafood sector and other impacted businesses.

"We will help them access federal supports, find new customers in new markets so their success is not dependent on the decisions of President Trump," Houston said.

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With files from Kheira Morellon and Jane Sponagle