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Understanding the looming threat of tariffs
As the political landscape shifts with the incoming administration, New Brunswick exporters are facing a daunting challenge. The prospect of a 25% tariff on Canadian goods sold in the United States has left many business owners in a state of uncertainty.
Darrin Smith, owner of JessEm Tools in Moncton, highlights the gravity of the situation, noting that over 80% of his business relies on U.S. sales. The potential for tariffs could drive American consumers to seek alternatives, jeopardizing the livelihoods of countless workers in the region.
The ripple effect on local industries
Economist Pierre-Marcel Desjardins emphasizes that New Brunswick’s economy is particularly vulnerable due to its heavy reliance on exports to the U.S. Approximately 92% of the province’s international exports are directed south of the border.
This dependency means that a 25% tariff could halt most exports, significantly impacting key sectors such as forestry, fisheries, and agriculture. The implications of such a move could be devastating, not only for businesses but also for the employees who depend on these industries for their livelihoods.
Business owners weigh their options
For many business owners like Smith, the decision to stay or relocate is deeply personal. The potential for tariffs could force him to consider moving his operations to the U.S. or selling to an American buyer.
While he acknowledges the emotional toll this decision could take on his employees, he feels compelled to prioritize the financial stability of his family and business. The uncertainty surrounding tariffs has created a climate of fear and anxiety among local entrepreneurs, who are left to navigate a rapidly changing economic landscape.
