New U.S. Tariffs: Standing Up for New Brunswick Businesses

Canada’s trade relationship with the United States has entered a deeply concerning new phase—one that will create additional uncertainty and financial pressure for businesses across New Brunswick and the Saint John region.

Following the collapse of trade negotiations last week, the United States imposed a 50% tariff on $27.6 billion in Canadian goods effective August 22. Prime Minister Mark Carney stated that Canada suspended negotiations after last-minute American demands threatened Canada’s ability to protect its economic interests, international trade relationships, language and culture.

FULL SPEECH | Carney explains why Canada suspended trade talks with U.S. | CBC.ca

The impact on Canadian businesses is expected to be significant, affecting sectors such as agriculture, forestry, pulp and paper, electronics, sporting goods, dairy and alcohol. An estimated 52,000 Canadian jobs could be at risk.
For New Brunswick, the new U.S. tariffs are expected to affect approximately $112 million in exports, with the potential to reduce the province’s GDP by between 0.6% and 1%. Paper and paperboard products—including cartons, boxes and corrugated paper—are among the province’s most exposed sectors, accounting for an estimated $44.2 million in exports. These impacts are in addition to the ongoing pressures facing our forestry sector, particularly softwood lumber producers.

NB looking at more support for employers hit by latest tariffs

On August 25, the Government of Canada announced that it will respond dollar for dollar and rate for rate with new counter-tariffs on $27.6 billion in imports from the United States.
Beginning September 8, Canada will impose tariffs of 15%, 25% or 50% on targeted U.S. products, with each Canadian tariff matching the corresponding U.S. rate.

The counter-tariffs will focus on sectors that have been most affected by U.S. trade measures, including:
Steel and aluminum products
Pulp and paper
Dairy products
Fish and seafood
Appliances
Agricultural equipment
Electronics
Furniture
Clothing and apparel

The federal government also announced $7.5 billion in new and expanded support for Canadian workers and businesses. This includes:
An additional $1.5 billion through the Regional Tariff Response Initiative to support small and medium-sized businesses
A new $500 million BDC Pivot to Grow liquidity stream to help businesses manage immediate cash-flow pressures
Broader access to BDC tariff programs, with the minimum revenue requirement reduced to $1 million
An additional $2 billion for the Canada Strong Diversification Fund
$3.5 billion in rapid-response supports for workers and employers, including employment insurance flexibility, training and worker-retention measures
New flexibility under the Large Enterprise Tariff Loan facility

 

The Saint John Region Chamber stands firmly with our members and the businesses, workers and families who will be affected by these tariffs. We share the Canadian Chamber of Commerce’s concern that tariffs ultimately increase costs for businesses and consumers. Any Canadian response must be carefully targeted, strategic and developed in close consultation with the business community to avoid causing further economic harm at home. We will continue working closely with the Canadian Chamber of Commerce, the Atlantic Chamber of Commerce and our Chamber colleagues across New Brunswick to advocate for:
Timely and accessible support for affected businesses
Assistance that reflects the needs of small and medium-sized enterprises
Measures that protect jobs and strengthen affected sectors
Greater access to new markets and trade-diversification opportunities
Continued efforts to remove internal trade barriers and strengthen Canada’s competitiveness

We also strongly encourage residents and businesses to support local and purchase New Brunswick-made products whenever possible. Supporting local businesses will be increasingly important as our region navigates this period of economic uncertainty.
We want to hear from members whose businesses are being affected by U.S. tariffs or Canada’s countermeasures. Your feedback will help inform our advocacy and ensure that government decision-makers understand the real impact these measures are having on businesses in the Saint John region.

Please contact Shannon Merrifield to share your experience, concerns or anticipated impacts.