Ontario chamber of commerce calls for 'mutual de-escalation' in Canada

Ontario chamber of commerce calls for 'mutual de-escalation' in Canada-U.S. trade war

Tariffs increase costs, impede investment, chamber president says

The Ontario Chamber of Commerce is calling for "mutual de-escalation" in the trade war between Canada and U.S., saying tariffs hurt all businesses.

Daniel Tisch, the chamber's president and CEO, said in a news release Tuesday the group would like to see Canada and the U.S. return to the provisions of the Canada-U.S.-Mexico Agreement (CUSMA) on trade. He said, however, that U.S. President Donald Trump is unlikely to return to respecting the deal.

“This is a sad day for North American businesses, and with the threat of further U.S. escalation, the week may get even worse," Tisch said in the release.

"This mutually destructive trade war, driven by Trump’s multiple violations of his own trade agreement, is raising costs and impeding investment and hiring across the continent. Trade wars have no winners — only losers."

The chamber, a non-profit organization, has 60,000 members and works to bring "inclusive and sustainable" prosperity to businesses, workers and communities in Ontario. 

Canadian tariffs on billions of dollars worth of imported American goods took effect just after midnight Tuesday, escalating the ongoing trade dispute with the U.S.

The $27.6-billion, dollar-for-dollar tariffs, which range from 15 to 50 per cent, match the latest slate of U.S. tariffs on Canadian products imposed by the White House after trade talks fell apart last month.

The tariffs hit hundreds of American products, including steel, aluminum, cheese, appliances, clothing, cosmetics and farm equipment.

In response, Trump said late Tuesday afternoon he is directing the federal agency that oversees government procurement to remove all Canadian-origin products from its "awards schedule" after Ottawa's retaliatory tariffs take effect.

Trade war means 'short-term turbulence,' CEO says

In an interview Tuesday, Tisch said it's important for Canada to keep the lines of communication open with the U.S. while the trade war continues and until both governments step back from tariffs as costs mount for businesses on both sides of the border.

"It looks for Canada like we're going to have to live with short-term turbulence rather than accept long-term harm to our businesses, our economy and our sovereignty," Tisch said.

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Tisch said, in the meantime, it's important for the federal and provincial governments to continue to provide:

That support should be easy to clear and easy to navigate, and approvals should happen quickly, he added.

Tariffs means repricing products, business owner says

Darryl Sherman, president of Wilson Furniture in Oshawa, said the reality of the new trade barriers is hitting the sales floor. Sherman said he has spent the day repricing inventory and re-evaluating costs against the new tariffs on U.S. imports.

"It's bad news because we have to re-evaluate all of our products, particularly our made-in-the U.S. products and we do have quite a few suppliers," he said.

"It’s definitely challenging. It's more than a nuisance."

Sherman said his inventory is primarily Canadian, but 30 per cent is American and those products are ones cannot source elsewhere. Some are "superior" products, he said. Some suppliers are willing to eat the extra costs from tariffs for the time being, but he said others can't afford to do so.

The tariffs will affect customers, he said.

"Bedroom furniture is subject to a 50 per cent tariff, which is far more difficult to deal with. We will probably have to make some adjustments and absorb a lot more there," he said.

With files from Muriel Draaisma, Olivia Piercey, Christian D'Avino, The Canadian Press and The Associated Press