Manitoba responds to U.S. Tariffs. See reaction here

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As tariffs of 25 per cent have been placed on Canadian goods by U.S. President Donald Trump, Manitoba has announced ways it is responding or retaliating to the tariffs and how they can minimize the impact on residents.

CTV News Winnipeg has gathered tariff reaction in Manitoba and it can be read below.

‘Lose-lose situation’: Manitoba Chambers of Commerce

The president of the Manitoba Chambers of Commerce says the trade war will not be good for both sides of the border.

“This is a lose-lose situation,” Chuck Davidson told CTV Winnipeg. “It’s a lose for consumers and businesses in the U.S. It’s a lose for Canadian businesses and Manitoba people as well.”

Davidson says he expects Manitobans to see the impact of tariffs quickly.

“The trucking industry, specifically, is going to be the first industry that you’re going to see the real challenges, with less and less product crossing borders,” he said. “That’s going to be a sign of this.”

Davidson said the chambers will be advocating for continued support for businesses in the wake of the tariffs.

‘A very selfish mentality’

Some Manitobans say they’re concerned about the impact the tariffs have on their bottom line, with one retiree calling the situation chaotic.

“What’s coming out of the White House, what’s coming out of the President of the United States’ mouth, is doing nothing but ceding chaos,” said Harold Shuster. “There’s no economic rationale to it. I don’t know what he’s hoping to gain from it.

“This is going to hurt American business and consumers as much, if not more, than Canadian business and consumers,” Shuster added.

Stephanie Morin-Robert said she’s worried about smaller businesses taking a hit.

“We will definitely feel the impact no matter what we’re doing with our lives,” she said. “So it’s unfortunate; it’s really unfortunate.”

Morin-Robert also said the concerns have trickled down to some of her youngest family members.

“My daughter actually asked me just the other day if Canada was a safe place to live,” recalled Morin-Robert. “So I think this is a ripple effect of many things that are going to happen. This is just one of many, and it’s a scary time.”

Sequoia Robertson expressed her disappointment over the tax on Canadian imports and said she’s concerned about potential price hikes at the grocery store.

“I think it’s a very selfish mentality,” she said. “It makes me sad that trade is being made more difficult.”

Robertson said the tariffs are pushing her to support local businesses and purchase Canadian-made products whenever she can.

Home Builders’ Association says steps in place to mitigate immediate price hikes

The Manitoba Home Builders’ Association said cost impacts are expected for both the industry and consumers, but they may be delayed by a few months.

“I think what we’re hearing from our supplier members is that they’ve taken as many steps as they can to prepare for this, and over the immediate term, we should be OK in terms of mitigating as many of the impacts as we can,” said Lanny McInnes, the president and CEO of the association.

“But as this stretches out and we get into June, July, August, it’s really, at this point, anybody’s best guess as to what the overall impact is going to have in terms of cost escalation.”

He said with these steps in place, now may be the right time to build a new home if that’s what Manitobans are wanting to do.

“Certainly, our members are very conscious of how their customers will be feeling right now, and they want to make sure that they’re doing their best to serve their needs in a very uncertain time.”

McInnes did note retaliatory tariffs from the Canadian government could also impact the price of goods that are used to build homes, so the association is still waiting to see how that will unfold.

“We’ll continue to be pressing the federal government on that because at the same time we understand we need to respond, we also want to make sure we’re doing that in a way that isn’t negatively impacting Canadians who are looking at building a new home.”

Lumber industry could see layoffs, businesses closed

Liz Kovach, the president of Supply-Build Canada, said 30 per cent of Canada’s lumber goes to the United States each year.

“Where we run into danger is if the order files that are coming from south of the border start to diminish because we rely so heavily on the U.S. being our partner. If mills have to start curtailing their operations, which means producing less material, then we might start to see some layoffs in the short term,” said Kovach.

She noted if the trade war continues for the long term, then it could result in businesses closing. She said there are more than 330 lumber businesses in the Prairies alone that are represented by Supply-Build Canada, some of which are small, family-owned companies.

“They’re more than just a retailer; they’re a fabric of that community. So I think it’s really important that we as Canadians understand that where we choose to spend our money really does help move things forward.”

She said they are planning on creating a “buy local” web page to highlight all the Canadian businesses in the lumber industry to ensure people know where to buy from.

“We just want to make sure that, as Canadians, we’re helping to support Canadian businesses, especially because we’ve heard during the pandemic and even now, our economy is built on small to medium-sized businesses, and if they disappear, we’re going to be in a world of hurt.”

‘Nothing but harm to farmers’

Keystone Agricultural Producers (KAP) said these tariffs are going to threaten operations for Manitoba farmers.

“Today’s imposition of tariffs on Canadian goods entering the U.S. will do nothing but harm farmers and consumers on both sides of the border,” said Jill Verwey, the president of KAP, in a news release.

KAP said Manitoba’s agriculture exports from 2024 were $9.28 billion, 46 per cent of that was sent to the United States. KAP noted products that head south of the border include canola, potatoes, oats and pork.

“Manitoba farmers produce world-class agricultural products and our trading partners in the U.S. know this, despite the actions their federal government are taking that will disrupt their ability to access Manitoba products at an affordable price,” said Colin Hornby, the general manager of KAP, in a news release.

He added these tariffs will affect farmers’ livelihoods and will increase the cost of food for the people of the United States.

Verwey said industries in Canada need to “band together” as the country deal with tariffs.

One business impacted by these tariffs is Peak of the Market. CEO Pamela Kolochuk said 10 truckloads of potatoes left the warehouse Tuesday morning destined for the United States.

“So every single load that’s crossed the border since 12:01 a.m., we’ve had to pay a 25 per cent tariff,” said Kolochuk.

She noted her company still owns the potatoes as they cross the border, which makes them the importer on record, meaning for each truck that crosses the border, Peak of the Market has to pay an extra $3,500.

“Our margins are not even close. So it’s eating up profits and more.”

Sean MacDonald, an instructor at the Asper School of Business, there are a few ways the importer of record can be done.

“(It can be) the owner of the good, and it can be the purchaser of the goods. It can be either. It can also be a licensed broker designated by the owner or purchaser,” said MacDonald. “What the importer of record is responsible for is to pay duties, tariffs, taxes and is liable if there’s a problem with the product.”

He said in this specific case, it’s not the U.S. consumers that will be impacted as much.

Kolochuk said she expects potatoes to get more expensive in as little as a week and a half if nothing changes.

“At the end of the day, the consumers are going to have a new tax. It’s going to be a tariff tax. But we’re going to have to pass on this tariff to the consumer, and it’s going to hurt on both sides of the border.”

Manitoba Pork says there will be ‘significant negative impacts’ on jobs, GDP

The head of the province’s pork industry also weighed in with its reaction to the tariffs, saying the impact will be felt across the board.

“These tariffs will add costs to producers, threaten their financial viability, increase costs on both sides of the border for consumers, and add to delays in shipping,” said Cam Dahl, the general manager of Manitoba Pork, in a news release.

According to Dahl, Manitoba’s hog sector contributes $2.3 billion to the provincial GDP every year and exports around $400 million worth of pork to the U.S. annually.

“Exports of live animals and pork to the U.S. represents about 40 per cent of our total exports of pigs and pork,” Dahl said.

“There will be significant negative impacts on jobs and Manitoba’s GDP if these tariffs persist.”

Local businesses can now prepare for future, says Chamber of Commerce

Loren Remillard with the Winnipeg Chamber of Commerce said though the news is disheartening, at least the uncertainty is gone, and businesses can start planning.

“It makes it very difficult to plan when you just don’t know what tomorrow will bring,” he said.

“Well, now tomorrow has arrived. We know the tariffs are in place.”

Remillard added that there’s been a huge push to support local, which has been a small silver lining for businesses.

However, he said tariffs will still have an impact on product availability, price fluctuations, and workforce reductions.

“One of the things we hear from our members is they will be impacted financially,” he said. “That is the number one area they expect to see some hurt.”

History repeating itself

This trade war is not the first time the United States has imposed tariffs on Canadian goods.

University of Manitoba Professor Len Kuffert characterized the history between the countries as a “low-level boiling feud that erupts every once in a while.”

“There were times at which the two countries went at each other, particularly during the Great Depression, in the belief that the tariffs would solve the problem to a certain extent or at least keep people’s money within their own domestic economy,” he said.

Kuffert added that previous tariffs were not an effective remedy, noting they did work to reduce the consumption of imported goods.

He said since the introduction of the Canada-U.S. Free Trade Agreement, the two countries have become quite interconnected.

“I would liken what’s going on now to trying to rip out the wiring in your house,” he said.

“It’s been there for 30, 40 years and then expected to be able to get back to normal fairly quickly.”

Tariffs will have minimal impact on early-stage critical mineral exploration: MPDA

The president of the leading group in Manitoba’s mineral exploration said she’s confident the industry will be able to handle Trump’s tariffs.

“We’re feeling pretty positive,” said MaryAnn Mihychuk, president of the Manitoba Prospectors and Developers Association (MPDA). “We are probably the world’s bank of critical minerals. We have an enormous resource, much of it still to be explored and tapped, and we have alternatives.”

Mihychuk pointed to the Hudson Bay Railway and the Port of Churchill as other export methods to reach a global audience.

“Never has it become more important for that project to expand and become more viable,” she said. “So we’re extremely excited about that new opportunity.”

When it comes to mining companies, Mihychuk said they have other trade options, too.

“They will ship that material off to Europe or other places in the world,” she said.

Mihychuk also said her confidence carries down to the members of the MPDA.

“They feel that they can handle it,” she assured. “It will not impact their operation.”

However, Mihychuk said she’s interested to see what the federal government will do when it comes to the U.S. interest in Canada’s critical minerals.

“There is indications that, of course, the United States would like to access Canada’s critical minerals, and given their situation with the trade war, we’ll have to see how that plays out.”

‘This will hurt Canada. This will hurt Manitoba.’

The regional vice president of Canadian Manufacturers and Exporters for the Prairies did not mince words about the impact of the tariffs on his industry.

“This will hurt Canada. This will hurt Manitoba, starting with those who manufacture goods and export goods,” Terry Shaw told CTV Morning Live Winnipeg on Tuesday. “The reality is the tariffs are being paid by American customers and American companies.”

Shaw said there has already been some impact in the region from the tariffs and said front-line workers will be hurt the most on both sides of the border.

“Unfortunately, we’ve already seen, in Manitoba, some layoffs,” he said. “Some Manitoba manufacturers in conversation with their customers in the United States have already suggested that if these tariffs come to pass, we will be discontinuing or reducing orders, things like that. So that has slowed production already in Manitoba and has caused some layoffs.

“I think that will get exacerbated, for sure, and I think we’ll see the same thing on the other side of the border in the United States.”

City of Winnipeg says capital projects, procurement could be impacted

The City of Winnipeg has outlined the steps it’s taking to address the potential impact of tariffs.

Mayor Scott Gillingham said in a statement that a “Team Canada” approach is needed, and the city is committed to working with all levels of government to navigate the tariffs.

Among the measures is updating current tenders and contracts, noting some larger capital projects are at risk of rising prices due to tariffs on materials.

“To help reduce potential cost increases, the city has updated public tenders and new contracts to require contractors to explore alternative sources for equivalent goods in other jurisdictions,” the city wrote in a news release.

The steps also include a coordination between all three levels of government on procurement strategies and will start tracking U.S. purchases, noting indirect purchases of U.S. goods through Canadian suppliers have not been tracked.

“The city currently has a small number of direct contracts with U.S.-based suppliers, mainly for software support and transit bus parts, as well as specialized equipment, fleet and water treatment chemicals,” the city said in a news release.

The city will also report on the financial impact of tariffs on the city regularly.

Manitoba pulling U.S. liquor off shelves amid trade war: premier

In the wake of 25 per cent tariffs on Canadian and Mexican goods implemented by U.S. President Donald Trump Tuesday, the province of Manitoba has announced it will stop selling US alcohol at Liquor Marts.

Premier Wab Kinew posted about the decision on X Tuesday morning.

During the tariff threat in February, Manitoba Liquor and Lotteries removed American alcohol from shelves and were ordered to not stock American liquor. The decision was reversed when the tariff threat was paused.

Ontario, Nova Scotia and Newfoundland and Labrador are among the other provinces that have announced back in February that they would pull U.S. alcohol from the shelves in response to tariffs.

The head of Manitoba Liquor and Lotteries has said about six per cent of the Crown corporation’s alcohol products comes from the U.S.

Kinew has also announced plans for a tax deferral for businesses impacted by tariffs.

“This will be an opt-in deferral of the Health and Post Secondary Levy (payroll tax) as well as the Retail Sales Tax,” the premier wrote on X. This will start with the February tax period and go for three months before we reassess. This allows businesses to keep cash and protect your jobs.”

-With files from The Canadian Press.

This is a developing story. More to come.