We now have a few more weeks to determine the probable impacts of tariffs being contemplated by U.S. President Donald Trump, but the threat of tariffs has already had an economic impact on some Canadian businesses.
That was the case for Acme Animals — the business creates animal-themed clocks, candle holders and small sculptures designed to brighten up a home or workspace. They’re made primarily of aluminum with wood bases.
Nancy Clarke is the owner of Acme Animals. She told CTV News much of what she makes heads stateside, “I only have five stores in Canada. That’s really shocking. So 95 per cent of my market is in the states. stores and galleries.”
The business started in 1993. Carke joined the original owners as part of the business in 1997. She took it over eight years ago, operating out of a small workshop in London’s Old South neighbourhood.
Acme Animals has sustained through various economic ups and downs over the last 30, years but the tariffs could have a dramatic impact, “It could very well tank my business,” she said.
Even before the tariffs took affect, Clarke said she wanted to be fair to her customers and warned them that they may need to absorb some or possibly all of the tariff increase.
“I basically asked them, how do you want to proceed with this, knowing that there is this additional cost and all of them, stated their frustration and their anger about what is happening in the states.”
She was working on two individual orders and one large order for a store. As of Monday morning the orders were up in the air, “They have all decided to wait and see what happens. So, I’m finishing up these orders and then I’m going to sit on them, basically.”
London Chamber of Commerce Chief Operating Officer Kristen Duever took part in a noon-hour meeting Monday with members of the Canadian Chamber Network. The goal of the meeting was to find out the specific impacts that tariffs are going to have and where the chamber and the chamber network can step in and help.”
Along with endorsing buy-Canada and buy-local messages, the chamber network has renewed the call to reduce or drop interprovincial trade barriers.
Duever says freeing up trade across the country could effectively negate the rise in Gross Domestic Product (GDP) rom the U.S. tariffs.
“If we could get rid of our cross-border issues and those interprovincial trade barriers that would actually more than make up for the loss we would have from the tariffs,” she said.
Ivey Business School economics professor Fraser Johnson specializes in supply chain issues, “My hope is that this is part of a negotiation process and, you know, I’d like to see it get settled,” he said.
While governments were able to quickly mobilize to provide supports for businesses impacted by the pandemic, Johnson said addressing the impacts of tariffs present a greater challenge.
“They’re different and they’re going to impact different regions of the country disproportionately. They’re going to impact different industries disproportionately. So, any government action, I think, is going to be surgical,” said Johnson.
The extension of the tariff ultimatum gives governments, businesses and the advocates that support them, more time to contemplate strategies on how to better weather them and, possibly, improve the overall economic strategy.
