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OTTAWA — Prime Minister Mark Carney’s tit-for-tat trade war with the Donald Trump White House is doing more harm than good to Canadian businesses, says an industry group.
In a statement issued on Wednesday, the Coalition of Concerned Manufacturers and Businesses of Canada (CCMBC) urged the federal government to reconsider its policy of matching tariffs against the United States, accusing the PM of engaging in high-stakes political brinksmanship at the expense of Canadians.
“Canadian businesses do not need political theatre. They need certainty, affordable inputs, stable supply chains, and dependable access to their largest market,” said CCMBC board member Scott Hughes.
“A retaliatory tariff is effectively a tax on Canadian businesses and consumers unless it is accompanied by a clear, credible path to a negotiated settlement.”
On Tuesday, Canada enacted dollar-for-dollar tariffs meant to match the levies imposed upon Canadian imports by U.S. President Donald Trump.
These $27.6 billion worth of counter-tariffs range from 25% to 50% and match levies imposed by the Trump White House on everything from steel and dairy to electronics and paper products.
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Organizations warn against counter-tariffs
This comes after the U.S. president spent the Labour Day weekend on an erratic social media posting spree, ostensibly declaring the entirety of North and Central America — as well as Greenland and Iceland — as U.S. territory, summarily renaming the state of New Mexico as New America, and posting an AI-generated cartoon of himself attacking the Canadian PM with a hockey stick.
Numerous business lobbies, including the CCMBC, have voiced strong opposition to Canada’s counter-tariffs, warning they amount to little more than a direct tax on domestic supply chains and force Canadian businesses — and eventually consumers — to eat the higher costs.
Organizations like CCMBC are also calling on the Carney Liberals to be transparent and up-front about what led to talks breaking down.
Among the measures the Coalition are calling for are disclosures of specific terms proposed and rejected during negotiations, what impact counter-tariffs are expected to have on Canadian businesses, an exact list of impacted U.S. imports, establishing government aid for displaced workers and impacted businesses, and clear timelines on when trade talks are expected to resume.
Manufacturers are warning that small to medium-sized Canadian businesses don’t have easy access to domestic substitutes for vital American parts and that companies will be forced to raise prices, freeze investments or even lay off workers.
“Canada should defend its interests firmly, but it must do so with practical diplomacy and a clear understanding of who pays the price,” Hughes said.
“A policy that raises costs for Canadians without a credible path to restoring market access and trade stability is not a sustainable strategy.”
bpassifiume@postmedia.com
X: @bryanpassifiume