Barrie Chamber of Commerce Response to U.S. Tariffs: March 4, 2025

Barrie Chamber of Commerce Response to U.S. Tariffs: March 4, 2025

FOR IMMEDIATE RELEASE

[BARRIE, ONTARIO – March 4, 2025] On March 4, 2025, the U.S. imposed 25% tariffs on Canadian goods. This has wide-reaching implications for Canada, Ontario, and Barrie. The Barrie Chamber of Commerce is committed to supporting local businesses through this challenging period and will continue to advocate for strategies that ensure long-term economic stability, growth and resilience.

National Impact of U.S. Tariffs on Canada:

The U.S. tariffs will have an immediate and detrimental impact on both the U.S. and Canadian economies. The Canadian Chamber of Commerce (CCC) and Ontario Chamber of Commerce (OCC) have labelled these tariffs "reckless" and will lead to increased consumer costs, job losses and economic instability in both countries. While the U.S. government argues that these tariffs are necessary to protect American interests, they will likely harm U.S. industries, particularly those dependent on Canadian imports.

Federal and Provincial Response:

Both federal and provincial governments have expressed their commitment to responding to these tariffs through immediate actions and long-term strategies. The OCC strongly advocates for enhancing Canada’s resilience by improving trade diversification and reducing dependency on the U.S.

Prime Minister Justin Trudeau has implemented retaliatory tariffs effective today, March 4, 2025. 25% tariffs on $30 billion CAD worth of U.S. goods. An additional $125 billion CAD in tariffs is planned to be implemented after a 21-day consultation period, bringing the total to $155 billion CAD. ​

• Canada announces robust tariff package in response to unjustified U.S. tariffs – Department of Finance Canada
• List of products from the United States subject to 25 per cent tariffs effective March 4, 2025 – Department of Finance Canada

Ontario Premier Doug Ford has announced the cancellation of the $100 million contract with Starlink (owned by Elon Musk’s SpaceX). Ontario will not award contracts to entities that “enable and encourage economic attacks”. Ontario will also impose a 25% tariff on electricity exports to the States. U.S. based companies will also be banned from participating in Ontario’s procurement processes.

• Ontario responds to tariffs by removing U.S. alcohol, cancelling Starlink deal
• “I want to inflict as much pain as we possibly can” Ford says Ontario will put export tax on electricity sent to U.S.

Ontario-Specific Impact:

Ontario, with its significant manufacturing base and close trade ties to the U.S., faces immediate risks from these tariffs. The automotive industry will be impacted by rising costs and potential disruptions to supply chains. Ontario businesses in sectors such as agriculture, construction, and energy will also feel the effects of higher tariffs, which could result in a cascade of price increases and supply delays.

At the same time, Ontario businesses will face growing pressure to reduce their reliance on the U.S. market. This presents an opportunity for the province to strengthen its internal trade systems, streamline regulatory frameworks, and advocate for the diversification of trade relationships.

Barrie-Specific Impact:

Barrie has thriving manufacturing, construction and retail sectors. It is particularly vulnerable to tariff increases. As a growing hub for small businesses, Barrie may face delays, rising costs and potential supply chain disruptions due to the heightened trade barriers with the U.S.

• Manufacturing Sector: Barrie businesses involved in manufacturing, especially those reliant on automotive parts, consumer goods, and raw materials imported from the U.S., may see an increase in operating costs, which could impact their competitiveness.
• Construction and Energy Sectors: Barrie is home to businesses that supply construction materials, which could be subject to higher tariffs. As Ontario considers reducing energy exports to the U.S., there may be a ripple effect on local businesses that rely on energy-intensive processes.
• Retail and Agriculture: Retailers and agricultural suppliers in Barrie could see higher costs due to the increased tariffs on U.S. goods, which could result in price hikes for consumers. The agricultural sector, which is heavily intertwined with U.S. exports, may face challenges in accessing markets or dealing with reduced profitability.

Recommendations for Barrie Chamber of Commerce Members:

Diversify Supply Chains:

• Action: Businesses should evaluate their supply chains and explore diversification to reduce dependence on U.S. imports. This could involve sourcing from Canadian suppliers or expanding into international markets.

Strengthen Local Networks:

• Action: Foster collaboration between Barrie-based businesses to create stronger local supply chains. By building these networks, businesses can mitigate the impact of rising input costs and potential supply chain disruptions.

Leverage Provincial and Federal Support Programs:

• Action: Encourage businesses to explore financial assistance, including subsidies and grants, which may be available through provincial and federal governments. These programs can help offset the increased costs of doing business in the face of tariffs.

Invest in Technology and Automation:

• Action: Businesses may need to invest in automation and technology to remain competitive. Automation can help reduce operational costs and increase efficiency in response to higher tariffs.

Focus on Internal Trade:

• Action: As Ontario looks to improve internal trade, Barrie businesses should explore new opportunities within the province and Canada. This could include tapping into underserved domestic markets or collaborating with businesses in other provinces.

Resilience Building:

• Action: Now is the time for Barrie businesses to prioritize resilience. This means revisiting business models, cutting unnecessary costs, and focusing on core strengths that can withstand economic turbulence.

What to Expect from Politicians:

Politicians at the federal and provincial levels will need to take swift and decisive action to address the economic fallout of the U.S. tariffs. While Canada does not have direct leverage over U.S. trade policy, there are several avenues through which politicians can help mitigate the damage:

Retaliation and Countermeasures:

• Action: Canada can implement retaliatory tariffs, particularly on key U.S. exports. By focusing on industries like agriculture, automotive, and consumer goods, Canada can create pressure on U.S. businesses, particularly in border states, to push for a reversal of the tariffs.

Diplomatic Engagement and Reassessment:

• Action: Canadian leaders should engage in diplomatic efforts to convince U.S. lawmakers, governors, and business leaders to lobby for the rollback of tariffs. Engaging with those who are likely to be adversely affected by these tariffs in the U.S. could lead to domestic pressure on the Trump administration.
• Support: Politicians should also advocate for Canada’s position through international trade organizations, such as the World Trade Organization (WTO), if the tariffs are deemed unfair or in violation of international law.

Public Messaging and Economic Strategy:

• Action: Politicians should lead a public campaign to demonstrate the mutual harm these tariffs cause, highlighting not only the damage to Canada’s economy but also to U.S. consumers and businesses. Public opinion in the U.S. can be a powerful tool in shifting the direction of U.S. policy.

While the U.S. tariffs represent a significant challenge, they also present opportunities for Canada to reassess its trade strategies and strengthen domestic markets. The Barrie Chamber of Commerce will continue to advocate for our members by providing resources, facilitating local business collaboration, and supporting efforts at both the provincial and federal levels to navigate these challenges.

Through resilience, innovation, and strategic partnerships, Barrie businesses can weather this storm and emerge stronger in the long term. Together, we will work to minimize the short-term damage and build a more prosperous future for our community.

 

Paul Markle
Chief Executive Officer
Paul@barriechamber.com
121 Commerce Park Drive, Unit A
Barrie, Ontario L4N 8X1
(O) 705 - 721 - 5000 ext. 5
(C) 249-288-3540