Haliburton Highlands Chamber of Commerce executive director Amanda Conn expects “all industries will be significantly impacted” by sweeping tariffs between Canada and the U.S., though many County entrepreneurs are seeing this as an opportunity to diversify their operations.
The Canadian government implemented a 25 per cent tariff on $30 billion worth of goods imported from the U.S. March 4, in response to U.S. president Donald Trump’s repeated threats to target Canadian-made products.
A 25 per cent U.S. tariff was to come into effect Feb. 4, then pushed to March 4, and now to April 2, with Trump continuing to tout the measures as a way to drive more manufacturing to the States.
Ontario premier Doug Ford applied a 25 per cent surcharge on Canadian electricity sold to the U.S. March 10, and introduced legislation preventing American companies from bidding for government contracts – with Trump threatening retaliatory sanctions on steel and aluminum products. Both sides have paused sanctions for now, though Conn said the trade war is causing angst in the County.
“There is a lot of concern over what this will do to prices – the tariffs will hurt our economy, the trouble now is, with all the changes, it’s very difficult for our businesses to plan for next steps. Nobody really knows any more what’s going to happen, or when,” Conn told The Highlander.
Brandon Nimigon, chair of the Haliburton BIA, said he hasn’t heard many issues from small retailers in the downtown core, saying the impact is more likely to be felt by large-scale manufacturers.
‘Time to show local pride’
Locally, he thinks this will also lead to a prolonged cool off in the construction industry, which he said has been struggling for the past six-to-eight months.
“With all this noise on lumber, steel, aluminum and other products… builders are concerned because, with those costs rising, that always translates to less people wanting to build things.
“Then it’s the trickle-down effect – construction is a big industry in the County. If there’s not a lot of new money coming into our local economy there, that slows down everything in every market,” Nimigon said.
Opportunities elsewhere
Malcolm Cockwell, managing director at Haliburton Forest, said historically between 30 and 50 per cent of company products made in the County are shipped to the U.S.
“Last week in particular was very hectic, fielding calls from customers non-stop while things were basically changing hour-by-hour… this is something that is going to impact our business, but not in the way I think Mr. Trump intends.
“As a supplier, there’s not really a whole lot to do. Tariffs are paid by the importer, so when we sell lumber to an American customer, and there’s a big tariff on it, we don’t pay that. The U.S. customer pays it,” Cockwell said. “The most we can do is to try to expand our customer base.”
He said about 10 per cent of the Forest’s exports are international, which Cockwell expects to ramp up significantly in coming months. He’s targeting more sales in Europe and Asia.
Matthew Roberts, operations manager at Heat-Line, a niche business located in Algonquin Highlands that specializes in developing and manufacturing advanced heating cables and water pipe freeze protection for residential and commercial markets, tells a similar story.
Roberts said about 32 per cent of the company’s sales in 2024 were to U.S. customers, who would all be impacted by a blanket 25 per cent tariff. The company would also be hit on the other end, with approximately 40 per cent of the raw materials used to develop products sourced from the States.
The kicker, he said, is that there’s no domestic alternative to the technology they ship, meaning the company has no option but to absorb those costs. He expects that will eventually lead to an approximate 15 per cent increase to Heat-Line’s pricing.
“We’re now in a situation where a local business that was strong, flourishing and looking to grow is taking a huge hit to its bottom line,” Roberts said.
“Ultimately, nobody benefits from a trade war. Businesses just have to adapt as best they can,” Cockwell added.
Food, drinks impacted
Mathew Renda, owner of Boshkung Brewing Co., said he’s already starting to see the effects of the tariffs.
“We’re seeing the cost of our cans go up roughly 10 cents per can, which is pretty substantial,” he said, noting Boshkung imports all of its aluminum from the U.S. While most of the grain used in their beers are Canadian, more than half of the hops in their recipes are imported from Washington state.
“We’re kind of getting hit on all sides … obviously on the food side too, we’re already seeing some of our ingredients we purchase increase in price. That’s going to hit everyone,” Renda said.
He’s holding off increasing prices for now, hoping the trade standoff will soon come to an amicable end.
Trevor Chaulk, who runs a cabinet manufacturing shop in Minden, is in the same boat. While his business hasn’t been impacted – with about 90 per cent of their materials sourced in Canada and 95 to 98 per cent of clients based in Ontario – he’s worried about the long-term economic impacts of a trade war.
“We have a lot of large manufacturers that export to the U.S. If these tariffs come into play, those companies are going to be losing lots of potential sales. The Canadian market will be flooded with lower pricing, creating pricing wars here, which will in turn increase overseas imports, so it’s more important than ever to buy local.
“If these larger manufacturers start reducing costs just to keep products moving along, it’s going to put a lot of small manufacturing companies out of business,” Chaulk said.
Time to rally
Cockwell said this is also an opportunity for Canadian businesses to explore more domestic options for manufacturing and sales. He said the Forest is also “100 per cent supportive” of greater inter-provincial trade.
Barriers to certain products exist in most regions due to varying provincial regulations on things such as health and safety, product labelling, alcohol sales, and professional licensing.
“If this leads to the overall advancement and integration of the Canadian economy, leading to improved trade between provinces and territories, that would be a win. It wouldn’t be a game-changer, but certainly a positive step in the right direction,” he said. “Frankly, it’s something that should have been done as a nation 20 years ago.”
Cockwell said he’s also anticipating the stand-off with the U.S. to result in Canadians taking fewer vacations south of the border, creating opportunities for improved tourism to the Highlands.
Conn said, with some County businesses only just getting back on their feet following the pandemic, it’s more important than ever that Highlanders shop local.
“Shopping local is a grander message within Canada and one we want to echo as much as possible. We are continuing to look for ways to promote and identify Canadian-made goods. Now is the time to show that local pride on a regional, provincial and national level,” Conn said. “It’s important as Canadians to send a message we do support our own, especially when threatened.”
