How concerned should businesses in Canada be about tariffs from China and the USA?

CGTN Europe

CGTN Europe interviewed Dan Kelly, President and CEO of the Canadian Federation of Independent Business (CFIB)

Transcript

00:00Well, Dan Kelly is from the Canadian Federation of Independent Business.

00:04The Chinese tariffs are on several really critical sectors for our economy.

00:10Obviously, we are big agricultural product producers, and that will hurt not just large companies, large exporters,

00:17but tons and tons of small independent businesses and farmers.

00:21This is a big challenge for Canadian businesses, and when you add the tariff threats from around the world,

00:27these are some pretty challenging days.

00:30Now, these tariffs, as you say, apply to specific products.

00:34How will this affect the broader Canadian economy?

00:38Well, look, given the U.S. tariff situation, Canadian businesses are looking at expanding

00:44and looking at trade options elsewhere in the world.

00:47And, of course, Asia is a primary partner, of which China is a huge, huge section.

00:54And so for us, this is, you know, we're running out of options.

00:59We already have a small amount of trade with Europe that can be expanded, but my goodness,

01:04this is a big threat because we're getting kind of a one-two punch here with respect to tariffs.

01:09Some of the actions that we've taken towards China that have precipitated this are, in part,

01:14to try to align with the United States and their measures, but Canada seems to be caught in this crossfire.

01:21Well, indeed, and as you mentioned, there are already these U.S. tariffs lurking.

01:26Is this, with China, this latest round, is this the new front in what is a trade war?

01:32Well, look, the trade war is significant.

01:36Obviously, the U.S. market is just far more profound to Canada than is China,

01:41but depending on the commodity or sector of the economy, that can be different.

01:46But, yes, having two of the world's major markets limiting access for Canadian exports

01:52as an exporting nation, that takes its toll.

01:57Your members, the businesses that you represent, what are you communicating to them?

02:01Are they being prepared for a prolonged economic standoff?

02:06You know, I will say there is this feeling of unity among Canadians

02:13that we need to push back and push back aggressively,

02:16and we're a very politically divided country right now, as many are,

02:21but it's interesting to see that Canada has come together in a way that in my lifetime I have not seen.

02:29So the sentiment towards unity is really, really high, and that is a good thing.

02:36But our economy is not going to be able to withstand this without major damage if this goes on,

02:43and just the uncertainty over tariffs is taking its own toll on the business community.

02:48I mean, businesses like to plan for the future, and it is hard to figure out, given the U.S. situation.

02:54We've had, I think, five tariff announcements where it's going up or going down, depending on the hour.

02:59Yeah, clearly massive uncertainty.

03:01And the relationship with China is still very important for Canada.

03:05Do you think that relations can be improved, that it is very damaging, these latest rounds of tariffs, or can they walk them back?

03:13Look, we've been here before.

03:15We have had rounds of tariffs on certain commodities with China, with the United States or other trading partners.

03:22They're in place for a while, some degree of retaliation, and then calmer waters reappear.

03:28But right now with the United States, I think we're going to have to sleep with one eye open.

03:33Hopefully, the brewing battle between the U.S. and China doesn't create collateral damage here in Canada,

03:41but I worry very much that that's what's going to happen.

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