Trump announced Saturday that he would impose a 25 per cent tariff on goods from Mexico and Canada, and a 10 per cent tariff on imports from China. However, an agreement reached Monday after a call between Prime Minister Justin Trudeau and U.S. President Donald Trump will pause the tariffs for 30 days.
XFM News spoke with Kristen Duever, chief operating officer of the London Chamber of Commerce, about how the tariff dispute could impact businesses in London.
“The tariffs will have a negative effect on businesses on both sides of the border,” Kristen Duever says. “We have a number of large manufacturers in London whose products cross the border several times before they’re completed. We have a very integrated trade relationship with the U.S., so even products made in Canada may contain U.S. parts or materials. It’s not good news for Canada that these tariffs have been imposed.”
XFM News then asked Kristen Duever what businesses can do to find relief and stay open during the tariff dispute. “There are a number of things we can do. One is to support local and buy local products made here in London, regardless of where the ownership of the company might lie, but companies that are supporting London jobs.”
Duever also explained, “In terms of what governments can and need to do, they should address interprovincial trade barriers. If we could remove those barriers today, it would more than make up for the impact on GDP that the tariffs would have.”
To finish, Kristen Duever says, “I think we need to expand and diversify our trade relationships with other countries so that we’re less reliant on the U.S. But these are long-term strategic solutions that won’t be solved overnight.”
Because of the tariff dispute, businesses in London are encouraged to support local products and address interprovincial trade barriers. While the 30-day pause offers temporary relief, long-term solutions, such as diversifying trade relationships, will be important to help reduce reliance on the U.S. and protecting Canada’s economy.
