Rocky business leaders are reacting to U.S. President Donald Trump’s claims that his administration will move forward with 25 per cent tariffs on Canadian imports at the beginning of February.
The initial threat from Trump came in November when he proposed tariffs on Canadian imports until the country stops drugs and illegal immigrants from crossing the U.S. border.
Whether he goes through with it or not, Canadians won’t know until Feb. 1, but the potential impact could be devastating for the economy.
Rod Tomyn, CEO of Tomco Group of Companies, a Rocky Mountain House company specializing in services to the oil and gas, mining, and forestry sectors, spoke with 94.5 Rewind Radio News about the possible repercussions of the tariffs, along with possible consequences of a tit-for-tat retaliation.
“The the first response of anybody is we have to raise our prices to the consumers. And that’s going to hurt everybody,” said Tomyn. “It will be such things as fresh produce, vehicles, farm equipment— everything that is imported from the U.S.”
A large portion of Tomco’s business is tied to oil and gas activity, Tomyn noted. He also says the company imports a large amount of equipment from the United States, and as of now, he says the process is fairly straightforward.
Tomyn also didn’t mince words when it comes to the suggestion of countering the duties ‘dollar-for-dollar.’
“The U.S. economy is at minimum 10 times larger than ours — we’re dealing with trillions of dollars. Our federal government and some of the premiers across the country are making some poor decisions,” he says.
Tomyn expressed a preference for Alberta Premier Danielle Smith’s approach to dealing with the new administration.
Headquartered in Rocky Mountain House, Tomco has nine different operations across Canada.
Wendall Mason, oilfield manager at Pidherney’s, said 25 per cent tariffs on exports would certainly affect its operations, including an increase in fuel costs.
“You just pass the 25 per cent along. Whoever’s purchasing parts or vehicles, it ends up being the consumers who pay for it,” he says. “How do you pass those along while maintaining your business?”
While saying he’s unsure if the tariffs will even happen, Mason adds that when it comes to energy, the U.S. is just as dependent on Canada as we are on them.
Tariff threat notwithstanding, Mason adds there are a lot of positives in the oil and gas industry at the moment. He points to increasing liquid natural gas (LNG) operations, as well as a recently announced AI data centre mega project.
Pidherney’s serves Alberta with oil and gas construction, underground infrastructure, and heavy hauling trucking, among other services.
Elsewhere, Red Deer District Chamber CEO Scott Robinson stood buy his earlier prediction that Trump won’t go through with the tariffs because of the impact it’ll also have on the U.S.
“If they do, we know that it’s been estimated it would cost each Canadian roughly $1,900 per household in lost revenue and it would probably put our country into an automatic recession,” he said.
“It would affect the American side as well and that’s the part I think that’s the message everyone is trying to get down south, that tariffs here would impact your country as well. Whether it be at the gas pump or other products they’re buying from Canada.”
According to the Canadian Press, more than 77 per cent of Canadian exports go to the U.S.
Robinson explained that the oil and gas sector is a major export for Canada, and without it, would most likely run a trade deficit. America, however, would be in trouble without that import.
It would also have a significant impact on other imports such as beef and grain.
Robinson said Canada has made changes to border security and made an effort to forming relationships with each state.
Canada has put approximately $1.3 billion into border security to help appease the U.S., so at this point, only time will tell how serious Trump is in following through.
“In terms of the history of Trump and the way he operates, he has a tendency to use these as levers to get attention,” he said.
“It’s hard not to see where [America] would see the light here in short order because they’ll feel it. Once your constituency feels it, then there’s going to be a lot more talk about it,” he said. “With that being said, Canadians are much more aware to what’s going on than Americans are in terms of not being a big talking point in the U.S. Mostly they’re focused on immigration issues.”
Meanwhile, on Tuesday, Prime Minister Justin Trudeau said Canada will respond if tariffs are implemented saying, “everything is on the table.”
“Our response will be robust and rapid and measured, but very strong. The goal will be to get those tariffs off as quickly as possible.”
-With files from The Canadian Press
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