From Bianca's Desk: U.S. Tariffs and Canada’s Response

Dear Members & Friends,

As we all now know, the U.S. is moving forward with tariffs on Canadian goods. Over the weekend, our federal government signaled its intent to introduce retaliatory tariffs, as well as non-tariff measures/pressures in partnership with individual provinces and territories.?Yesterday our provincial government started taking measures through its procurement processes. It’s hard to know exactly how PEI business will fare, but it’s safe to say we have some very challenging times ahead.??

While the tariffs will hurt the Canadian economy as a whole, businesses in PEI face specific risks. Many of our key industries, such as seafood, agriculture, and manufacturing, rely heavily on exports to the United States. Our local businesses are tightly woven into the North American supply chain, and sudden tariff increases could affect our producers, processors, and retailers immediately.??

Here at home, we need to look at what we can control to build resilience in our economy. PEI businesses may need to explore new markets, diversify their customer base, and seek out partnerships beyond the U.S. Premier King recently announced that the provincial government has committed funding for Island businesses looking to explore other export markets. We will let you know the details around this support the minute it becomes available and encourage all members to start exploring – if you already haven’t - potential new trading partners outside the U.S., and within Canada itself.??

As a member of the Atlantic Chamber, our members have access to their programming. They recently launched a Market Entry Development Program for businesses looking to diversify into the EU or Indo-Pacific markets. Please visit the following link for more information. They are up and running and ready to support:? https://www.atlanticchamber.ca/marketdevelopment?

There is also an opportunity to work on reducing internal trade barriers that limit the free flow of goods across provinces. We understand that this has been at the forefront of discussions among Premiers and through the power and connection of the Canadian Chamber, we are monitoring that work closely and will be reporting information back to our membership.??

We also need to increase efforts to educate the public on the power of supporting local, leveraging purchasing power and encouraging consumer habits that bolster our provincial economy.? Our Chamber has already started the groundwork for a province-wide, buy local campaign.? In the meantime, a nation-wide platform already exists to help people source Canadian made goods. Members producing local goods, who have an online presence or ability to wholesale and ship, may want to consider registering their business and products as a new wave of retailers and consumers search for ways to support Canadian made. It’s also a potential tool for sourcing inputs not readily available in PEI: https://madeinca.ca/?

The Greater Charlottetown Area Chamber of Commerce along with the entire Chamber network, is committed to supporting businesses through this turbulent period. We will continue to advocate for a competitive and stable economic environment where businesses can thrive, no matter what challenges are presented by external forces. We have meetings and touchpoints with government, industry stakeholders and our U.S. counterparts already in the books and will continue to leverage our network to help our members navigate the challenges ahead.??

Sincerely,

Bianca McGregor

CEO, GCACC