Haliburton Highlands Chamber of Commerce executive director Amanda Conn said it’s been a difficult few weeks for County-based businesses adapting to “seemingly ever-changing, on-again, off-again” tariffs proposed by the U.S. government.
After initially announcing plans to impose 25 per cent tariffs on Canadian imports effective Feb. 4, president Donald Trump delayed implementing measures until March 4. Since then, a series of retaliatory strikes from the federal and Ontario governments has resulted in more threats, though on April 11, Trump declared a 90-day pause on new tariff increases for most countries, including Canada.
The initial 25 per cent levy remains on imports, including non-United StatesMexico-Canada Agreement (USMCA) compliant goods and 10 per cent on energy and potash.
Conn said some County businesses are starting to feel the pinch.
“A few are definitely seeing some significant cost increases – those who rely on getting their raw materials from the U.S. or who have to ship things. We’re helping where we can, but I would say the nervousness many have been feeling is still there and it’s starting to worsen because we’re seeing some of the things we were concerned about coming true.
“The uncertainty and not knowing is probably the most frustrating thing, because it’s leaving people in limbo. For a good run there, we were seeing things change on a daily basis. New tariffs being added, then taken off. It’s created a sense of chaos and confusion. Businesses are finding it very difficult to plan because they never know what’s coming next, if they’re going to get hit or not,” Conn said.
With the Ontario Legislature getting back underway April 15, Conn said there’s some encouraging news coming out of Queen’s Park. Premier Doug Ford announced an $11 billion support fund for businesses, with $9 billion in deferrals for things like the employer health tax and insurance premium tax. He said that will be in place retroactively from April 1 to Oct. 1.
There’s also a $2 billion rebate the Workplace Safety and Insurance Board (WSIB) will issue to “safe employers.”
Conn said full details have yet to emerge on how that relief will be rolled out. She’s unsure, too, how much it will help small businesses.
“I think there’s some employers in our County that will benefit, but you have to have a pretty substantial payroll. I’d like to see more about the supports for smaller businesses,” she said.
Chamber president Joe Cox also felt the announced measures would have “little to no impact” on those struggling in Haliburton County.
Following last week’s throne speech, there’s an expectation the new government’s first bill will focus on interprovincial trade, breaking down internal barriers to bolster Ontario’s economy, as well as diversifying trade partnerships with other countries.
MPP Laurie Scott told The Highlander, “these measures will help us build a more competitive and resilient economy, ensuring that businesses are better equipped to thrive in the global market.”
Cox, controller at Francis Thomas Contracting in Algonquin Highlands, felt that would be a positive move.
“This could be an opportunity for local businesses to source alternative solutions without having to pay hefty import fees. Although, this will not have a considerable impact on our operations [at Francis Thomas], I can see this being beneficial to a number of organizations,” Cox said.
Focus on tourism
Conn said one benefit to the Canada-U.S. trade war is an expected bump in local tourism. She said locals should brace themselves for a summer like those seen in 2021 and 2022, when the Canadian border was closed for travel.
“The Ontario chamber network is doing a lot of advocacy around staycations – we did that a few years ago and it was a good boost for Haliburton County. Many businesses are driven by tourism here, so hopefully that’s something that will help,” Conn said.
Angelica Ingram, the County’s manager of tourism, noted many County-based tourism operators reported a strong winter and are optimistic for a busy summer. She believes the Highlands now one of the premiere four-season destinations for visitors from across the world – especially the U.S.
A recent Destination Ontario poll revealed more than half of U.S.-based respondents are likely to take a trip north of the border this year, Ingram said.
“Americans still feel that Canada is a welcoming destination. That is positive news, and we hope that translates to continued tourism from the U.S.,” Ingram said.
