The Lethbridge and District Chamber of Commerce says in the wake of the increase in the U.S. tariff on Canadian goods, it is important for people to educate themselves.
U.S. President Donald Trump signed an executive order Thursday night increasing the tariff on non-CUSMA (Canada-United States-Mexico Free Trade Agreement) compliant goods from 25 per cent to 35 per cent immediately. CEO of the Lethbridge and District Chamber of Commerce, Cyndi Crane, says in the wake of all this information, it is important for businesses to understand what CUSMA-compliance is.
“So the product was either made or substantially made in Canada, the U.S. or Mexico. So there are minimal regional contact thresholds and specifications that are outlined in CUSMA’s rules,” Crane says. “Those aren’t always easy to understand, and that’s why we want to work with those organizations who export goods [and help them] to understand the process.”
It is reported that 10 per cent of Canadian goods sent to the US are said to be non-CUSMA-compliant; however, Crane says that is not a small 10 per cent. However, she adds that this again opens up the opportunity to increase and improve trade within the country and diversify Canada’s trade portfolio.
“Now the provinces and territories really need to work together to limit some of the hurdles that are still within our own country and that are stopping our progress.”
“We need to talk about how are we going to get that those other 10 per cent taken care of, so that they are still strong and healthy for when we are at that stage where we can export across the country freely, or we create other trade partners outside of the US, that they are ready and that they are strong.”
Crane says she would like to see the Canadian Government use the funds from the reciprocal tariffs towards strengthening those hit hardest by the tariffs, or be put towards helping Canadian businesses streamline regulation and invest in workforce innovation.
The Lethbridge Chamber is currently working on going through the business survey that recently wrapped up, and they will be sharing the data in the coming weeks. Crane adds that, along with the survey statistics, the chamber also plans to gather information from the various border crossings.
Across Canada, businesses are addressing not only the 35 per cent tariffs, but also tariffs on specific sectors such as automotive and softwood lumber.
