Trade war’s impact on local businesses

As Canada readies for a potential trade war with the United States, business owners in Kawartha Lakes are sharing their thoughts on what impact 25 per cent import tariffs could have locally.

On Feb. 3, Canadian Prime Minister Justin Trudeau and U.S. President Donald Trump agreed to pause the implementation of 25 per cent tariffs on imports from each other’s country for up to 30 days.

The agreement came after Trump earlier said the U.S. would be placing 25 per cent tariffs on most Canadian and Mexican imports and Trudeau retaliated with 25 per cent tariffs on imported goods from the U.S.

David La Mantia, owner of La Mantia’s Country Market in Lindsay, said he’s concerned about the potential impact of a trade war with the U.S., noting it could affect businesses and jobs locally and nationally.

“We’ve been a part of the community since 1928, so if something adversely affects our community, it’s obviously going to adversely affect us,” he said.

La Mantia noted his store sells Canadian meat – most of which is Ontario-farmed – and a lot of the produce is also Canadian- and Ontario-grown.

While some Canadian grocers have started putting “Made in Canada” labels on shelves next to packaged goods, La Mantia said he’s reluctant to follow suit because items need to be scrutinized carefully. For instance, he notes that a box of Ritz crackers will have a Canadian address, “but that doesn’t mean it’s made in Canada.”

“You’ve got to be very careful,” he said. “It’s a tough job for us to determine and, I’d say, it’s also a tough job for the consumer to determine that.”

La Mantia also personally selects all the produce stocked in his store, and the company has its own truck that goes to Toronto to pick up food from a distribution centre, something the company has always done.

“We have total control over what we buy, so we’re able to make buying decisions on the spot and that’s what we’ve always done and that’s what we’re going to continue to do,” he said.

La Mantia underscores the importance of customer loyalty in the event of a trade war, something he said bodes well for his business.

“We have always enjoyed the support of the local community; we have lots of loyal customers,” he said.

Danie Farrell is the owner of Pawz ’N’ Clawz, a pet supply store in Bobcaygeon. Farrell said about 20 per cent of his store’s stock is imported from the U.S. While Farrell said he’s not concerned about the impact of a Canada-U.S. trade war at the moment, he noted that could change if things escalate.

What Farrell said is important is supporting Canadian-owned business, something he said he thinks Canadians need to do a better job at.

“For me, supporting Canadian business is probably the strongest point that we’ve got to make, kind of like what they’re doing in the States,” he said.

“(Americans) support America and we’ve got to do the same and support Canada.”

A potential trade war with the U.S. would also impact local manufacturers who export goods south of the border, said Rebecca Mustard, manager of economic development for the City of Kawartha Lakes.

At the time of this writing, there is still a great deal of uncertainty as to the full extent a Canada-U.S. trade war could have locally, she said.

“Information on the tariffs, and any actions Canada may take, is unfolding, and the impacts are not clearly known,” Mustard said

“Our businesses are resilient. The impacts are going to be felt differently across our business community, depending on what is imposed.”

For its part, Mustard said Kawartha Lakes is collaborating with the Eastern Ontario Wardens’ Caucus (EOWC) to assess potential impacts on the city’s communities, businesses and jobs, should a trade war happen.

“To reinforce cross-border collaboration, the EOWC has reached out to the New York Association of Counties and the Great Lakes and St. Lawrence Cities Initiative, emphasizing our shared commitment to partnership for the benefit of residents on both sides of the border,” she said.

“If you are a business, you have a network here to support you as you navigate these changes from the municipality’s Economic Development team, local business associations and organizations and industry associations.”

The people of Kawartha Lakes can also play a role in helping local business, she added.

“Shop locally, choose to buy products from local businesses here in Kawartha Lakes,” Mustard said.