Uncertainty around U.S. tariffs causing chaos, forcing N.S. businesses to adapt

Before the 30-day pause of sweeping U.S. tariffs on Canadian goods was announced Monday, the chief operating officer of Freeman Lumber didn't know which American customers the company would still have going forward. 

"It's been chaotic to say the least," said Marcus Zwicker, with the Greenfield, N.S., sawmill business. "A significant number of customers on the other side of the border … couldn't afford to pay" the tariff. 

More than half of the products Freeman Lumber makes are sold to clients in the United States. It's one business in Nova Scotia that continues to wrangle with the uncertainty caused by the tariff threat, even as it's been temporarily staved off.

For months, ahead of when the tariffs were originally expected to go into effect, Freeman Lumber had to adapt and adjust its operations. 

The Queens County firm shipped lumber to the U.S. months in advance. It also asked customers to take shipments early and pay at later dates. Now it is once again trying to plan ahead with a new 30-day deadline. 

The tariff threat has also led to contract changes for orders in the industry, Zwicker said.

"A lot of them now have tariff clauses where if it goes above a certain range, then … the party on either end has the right to cancel the order or not deliver the product."

While U.S. President Donald Trump's actions have proven difficult to predict, Zwicker said he tries not to worry about who the leader of the American government is.

"We work on the things we can control."

Seafood processing company Louisbourg Seafoods has spent decades building relationships with American clients. Now with the potential tariffs, those clients — like many of their Canadian counterparts — are re-evaluating how they conduct business.

"They're just as concerned as we are … in many ways, just as confused as we are," said chief operating officer Allan MacLean. "They really are quite shaken about the instability that we have."

The Louisbourg, N.S., company processes lobster, snow crab, halibut and other species. Typically, 50 to 60 per cent of its products are exported to the United States.

Louisbourg Seafoods has taken actions similar to Freeman Lumber, but MacLean said shipping fresh fish is a challenge.

The company has seen customers "changing their patterns of purchasing because of the instability, of the uncertainty." 

According to Statistics Canada, lobster and snow crab are among Nova Scotia's top exports to the U.S., accounting for more than $500 million worth of export value in 2023.

Louisbourg Seafoods now has a team in Europe looking at ways the company can diversify its customer base, MacLean said.

But he said it's been challenging.

"You can't pivot in 30 days."