00:00The Chinese tariffs are on several really critical sectors for our economy, obviously
00:06we are big agricultural product producers and that will hurt, not just large companies,
00:11large exporters, but tons and tons of small independent businesses and farmers. This is
00:17a big challenge for Canadian businesses and when you add the tariff threats from around
00:21the world, these are some pretty challenging days.
00:26Now these tariffs, as you say, apply to specific products. How will this affect the broader
00:31Canadian economy?
00:34Well look, given the US tariff situation, Canadian businesses are looking at expanding
00:39and looking at trade options elsewhere in the world. And of course Asia is a primary
00:45partner, of which China is a huge, huge section. And so for us, we're running out of options.
00:54We already have a small amount of trade with Europe that can be expanded, but my goodness,
00:59this is a big threat because we're getting kind of a one-two punch here with respect
01:03to tariffs. Some of the actions that we've taken towards China that have precipitated
01:08this are in part to try to align with the United States and their measures, but Canada
01:14seems to be caught in this crossfire.
01:16Well indeed, and as you mentioned, there are already these US tariffs lurking. Is this
01:22with China, this latest round, is this the new front in what is a trade war?
01:28Well look, the trade war is significant. Obviously the US market is just far more profound to
01:34Canada than is China, but depending on the commodity or sector of the economy, that can
01:40be different. But yes, having two of the world's major markets limiting access for Canadian
01:47exports as an exporting nation, that takes its toll.
01:52Your members, the businesses that you represent, what are you communicating to them? Are they
01:57being prepared for a prolonged economic standoff?
02:01You know, I will say there is this feeling of unity among Canadians that we need to push
02:09back and push back aggressively. And we're a very politically divided country right now,
02:15as many are, but it's interesting to see that Canada has come together in a way that
02:22in my lifetime I have not seen. So the sentiment towards unity is really, really high and that
02:30is a good thing. But our economy is not going to be able to withstand this without major
02:36damage if this goes on, and just the uncertainty over tariffs is taking its own toll on the
02:42business community. I mean, businesses like to plan for the future and it is hard to figure
02:46out given the US situation. We've had, I think, five tariff announcements where it's going
02:52up or going down depending on the hour.
02:54Yeah, clearly massive uncertainty. And the relationship with China is still very important
03:00for Canada. Do you think that relations can be improved, that it is very damaging, these
03:06latest rounds of tariffs, or can they walk them back?
03:09Look, we've been here before. We have had rounds of tariffs on certain commodities with
03:14China, with the United States or other trading partners. They're in place for a while, some
03:19degree of retaliation, and then calmer waters reappear. But right now with the United States,
03:25I think we're going to have to sleep with one eye open. Hopefully the brewing battle
03:31between the US and China doesn't create collateral damage here in Canada, but I worry very much
03:37that that's what's going to happen.
Comments