Business leaders fear impact of Trump tariffs against Canada as major trading partner

BUFFALO, N.Y. — With ongoing talk of tariffs against Canada and Mexico to be imposed by President Donald Trump as of Tuesday, there is still plenty of uncertainty about what exactly the White House will do and when it would take effect. Also yet to be determined is the actual impact on all of us in the U.S. and across the border in Canada. 

On Monday, border line tariff concerns from both sides of the border.  Buffalo Niagara Partnership President Dottie Gallagher told 2 On Your Side, “We’re all gonna feel the pain of this in Buffalo and throughout the United States quite honestly.”

Then Canadian Energy Minister John Wilkinson told CNBC, “This is something that is a lose – lose situation for both countries.”

Since taking office, President Trump’s tariff talk of 25 percent on Canada has haunted Western New York business leaders with various stats as they think of all those trucks on our bridges.

Gallagher reports, “We sell about $116 Million dollars in merchandise between Canada and New York state – it’s over 4 Billion dollars a year. “

Some Canadian economists projecting a cost of $1,300 dollars for the average American translating to $1,900 dollars for the average Canadian. That ranges from auto parts from both countries crossing the border several times for an assembled car, to lumber and steel for construction and manufacturing, to orange juice and liquor products. Not to mention Canadian consumers including their Bills and Sabres fans perhaps staying on their side.  

Gallagher points out, “The bi – national relationship and our friendship and really trying to treat that border as a bridge – nothing more than that. And this is a huge setback. And I think one that’s gonna be very difficult to recover from psychologically.”

Trump said this first phase of tariffs still aimed at cross border fentanyl and security issues for the Canadians who pledged a $1.3 Billion dollar plan to attack it. 

CNBC spoke with Canadian Energy Minister Wilkinson who said, “We have seen some very significant action on the part of both governments. Fentanyl seizures are down about 97 percent the last couple of months across from Canada. And that was from a very low number.”  

Canada expected to retaliate with their own tariffs on US goods and services…and perhaps cut off energy elements flowing to the U.S. as Ontario Premier Doug Ford reiterated on Monday. Wilkinson says, “We will see higher gasoline prices as a function of energy. Higher electricity prices from Hydro-Electric in Canada. Higher home heating  prices as associated with natural gas that comes from Canada.”

Gallagher adds “I’m hopeful that as this really begins to have a serious implication on the economy that the President will change his mind.” 

Perhaps that first impact was seen Monday afternoon as the S & P 500 dropped 1.8 percent and the Dow slipped by nearly 650 points or 1.5 percent.  As Gallagher puts it the stock market does not like instability.