Latest Trump tariffs won't have 'enormous impact' on N.L, says business professor
Though Canada is largely spared from latest tariffs, business and labour experts say anxiety still lingers
Workers in Newfoundland and Labrador seem to be safe for now from U.S. President Donald Trump's latest round of tariffs, according to one Memorial University professor.
Trump's 25 per cent tariff on all foreign automobiles comes into effect Thursday morning– essentially ensuring that manufacturing happens solely in the United States, according to business professor Tom Cooper.
Cooper said luckily for this province, Newfoundland and Labrador does not manufacture automobiles or their parts.
"We have some companies that sell into car companies– more predominantly software, maybe some services," Cooper told CBC News. "There's not an enormous impact versus a lot of our other more traditional industries."
The White House said that new tariff will apply to Canadian-made passenger vehicles, but there is a caveat — it will only be levied on the value of all non-U.S. content in that automobile.
Cooper said the tariff will have a bigger impact on automotive workers in provinces like Ontario. But, he said, consumers in this province might feel the fallout in regards to the prices of new cars.
"[For] existing stock, the prices are already set, but new stock may reflect the increased tariff prices," he said.
Trump also announced a 10 per cent "baseline tariff" on all goods coming into the United States. However, the White House said Canada will not be subjected to that additional baseline tariff rate because the previously announced border-related tariffs will continue to apply instead.
WATCH | Tom Cooper shares his business insights on the new tariffs:
Though Canada has been spared from those levies, Cooper said there remains a threat of additional tariffs.
That anxiety was also felt by Newfoundland and Labrador Federation of Labour president Jessica McCormick, who spoke to CBC News from Ottawa Wednesday evening.
From her perspective, Wednesday's announcement didn't change anything. Just because the province largely won't feel the effects of the automotive tariff, she said that doesn't mean Newfoundland and Labrador is out of the woods.
With both federal and provincial elections on the horizon, McCormick said the next wave of political leaders need to "be bold" about shifting away from dependence on the U.S., and must bolster local industries.
"We need a more modern employment insurance system that is responsive to the needs of today's workers," McCormick said.
"It's about making sure that workers are at the table in Newfoundland and Labrador."
Trump's negative remarks about Canada and his use of a large sign to explain his reciprocal tariffs on other countries "speaks to the level of chaos that we're going to be dealing with," said McCormick.
She added that Canadian workers won't be the only ones affected by these economic measures.
"What hasn't been acknowledged from the White House is how these tariffs will impact workers and hurt working people on both sides of the border," McCormick said.
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With files from Julia Israel
