SARNIA, Ontario (WXYZ) — As trade talks continue between the U.S. and Canada, businesses on both sides of the border are bracing for potential fallout from a looming tariff deadline. That negotiation deadline between the U.S. and Canada is Wednesday.
The proposed 50% tariff is creating deep uncertainty for cross-border commerce and local industries.
Watch Darren Cunningham's video report below:
Monday, seamtresses were hard at work creating children's costumes and accessories at Great Pretenders in Sarnia, Ontario. That's right across the international border from Port Huron.
“This (dress) is one of the items that are directly impacted by the tariff. We cannot send this item to the USA from this manufacturing facility,” strategy manager Lukas Schieck told 7 News Detroit.
He said knitted and woven dresses are a part of a niche list of about 500 items that could be impacted by the proposed tariff President Donald Trump is threatening to impose on Canada.
“Because the announcement happened with like a 30-day window, it meant that we pivoted to make all of items that were going to fall under this tariff as quickly as possible,” Schieck said.
Otherwise, he said the company will have to rely on its European facility to make up for 90% of its Canadian output. Also in Sarnia, 7 News Detroit spoke with Matthew Slotwinski.
Slotwinski is the CEO of the Sarnia-Lambton Economic Partnership.
“Businesses have adjusted in many ways. First, we’ve seen many businesses look toward the domestication of their consumer base in many cases where the U.S. simply isn’t a viable market anymore," he said.
He said many businesses are operating under a wait-and-see type of action plan.
“Additionally, we’ve seen a lot of businesses who have stalled on growth and diversification projects because of the instability and uncertainty that’s resulted from the ongoing tariff situation,” Slotwinski explained.
Canada is one of Michigan’s largest trade partners. Glenn Stevens Jr., head of MichAuto at the Detroit Regional Chamber, said the tariff would impact about $20 billion worth of Canadian goods.
“We know that negotiators have been at it all weekend. I understand that Prime Minister Carney and President Trump are speaking today. So, hopefully calmer heads will prevail and we’ll get through this latest chapter,” Stevens said.
Small businesses share that hope and seek to keep their products accessible and affordable to their customers.
“Effectively, the tariff is pricing our type of product, compared to others that don’t have this tariff burden out of the market for Canadian manufacturers. It pushes our production to overseas manufacturing,” Schieck said.
