Interests on both sides of the U.S.-Canada border remain wary despite a month-long pause in threatened tariffs.
President Trump announced that 25 percent tariffs on imported goods from Mexico and Canada that were set to go into effect on Monday would be postponed until March.
North Country Chamber of Commerce President Garry Douglas told attendees at an event Tuesday that despite the brief reprieve, lasting damage to cross border trade has been done.
“In 2017 there was a negative reaction to some of the limited tariffs that were applied from the White House at that time and we started to see a little bit of backlash. We got through it and we came back without a lot of damage being done,” recalled Douglas. “This time I think we are already deep into damage and we’re going to have very hard to try to start to undo the damage and hopefully make it limited. No matter where we go in the tariff matter now, there’s been some real damage.”
Douglas says the 30-day delay is welcome, but the thought of potential tariffs that linger continues to have a negative impact on cross border trade and business.
“That 30 days hangs over us and that in and of itself, while better than going forward with the tariffs, is still having a deleterious effect on business decisions because it keeps a cloud of uncertainty over the economy,” Douglas said. “So the sooner we get to where we get out of this situation the better.”
Town of Plattsburgh Supervisor Michael Cashman is cautiously optimistic about the 30-day pause, but says nearby communities must remain vigilant.
“We’re talking about the impact of groceries. We’re talking about the impact to our farmers with getting key materials. We’re talking about our manufacturing businesses being able to get supplies, provide supplies, keeping workers on the line because there could be work stoppages if they can’t get materials. I mean it is very, very impactful and I know many of the individuals in the manufacturing realm are trying to source other opportunities to make sure that they can keep business moving as normal as possible,” noted Cashman. “Thirty days is not a long time. So, there is still a lot of anxiety built into this period of time. There’s huge sigh of relief but we can’t sit on our laurels either.”
New York Governor Kathy Hochul, a Democrat, met privately with Canadian Consul General Tom Clark on Tuesday to discuss the potential ramifications of federal tariffs. In brief remarks released by the governor’s office, Clark says the relationship between Canada and New York goes beyond trade.
“As far as Canada is concerned, the relationship with New York state is one of our most important relationships anywhere in the world. You’re the tenth largest economy in the world. And when we take a look at $50 billion in two-way trade every year that number says it all,” Clark said. “But I think as you’ve said more than once it’s not the numbers that describe the relationship. It’s the centuries that we have worked together, lived together and cooperated together.”
Quebec’s Delegate General in New York David Brulotte says the economic implications of tariffs for trade between Quebec and New York state are unknown.
“I can only speak for the province of Quebec, but Canada has said openly as well that here is a list of tariffs that could be imposed from Canada and as our premier from Quebec mentioned on several occasions nothing is off the table. But we’ll make sure that we’re ready to protect Quebec’s economy, the citizens of Quebec,” Brulotte asserted. “And lastly to your point about New York, I think our relationship with the state is strong. Our companies, both south and north of the border, have vast vested interests across the frontier, across the border. So I think through our communities, our companies we’ll find ways to go through those eventual tariffs.”
On Tuesday, Vermont Governor Phil Scott formed a multi-agency Support Team on Potential Tariffs to assess possible impacts on the state, identify options to mitigate short- and long-term effects and opportunities for any potential upside to tariffs.
