Ottawa

Eastern Ontario businesses brace for U.S. tariffs

With U.S. tariffs against Canadian goods set to come into effect, businesses and city officials in Ottawa and eastern Ontario are bracing for the impacts.

Mayors, business owners worry how tariffs will impact cross-border trade

The American and Canadian flags fly side by side in front of a blue sky.
As the U.S. tariffs against Canadian imports are set to take effect, business owners in eastern Ontario worry about the impacts on supply chains and cross-border trade. (Lars Hagberg/Reuters)

With U.S. tariffs against Canadian goods set to come into effect Saturday, businesses and city officials in eastern Ontario are bracing for the impacts.

Ali Nasrallah, owner of Ottawa Auto Glass, said his store gets most of its parts from glass manufacturers in the U.S.

Tariffs of 25 per cent will be "a big hit" on his business, Nasrallah said, adding that his customers will likely end up paying for added costs.

"It doesn't really make sense to us since it's even coming from the U.S., which is our close ally," he said.

Nasrallah isn't alone. Businesses and local governments across the region are preparing for what many say will be devastating impacts on everything from food to health care.

In a Friday briefing, White House press secretary Karoline Leavitt said the president would put a 25 per cent tariff on Canada and Mexico.

U.S. President Donald Trump said he expects the tariffs will include oil, gas, steel, aluminum, copper and microchips — but potentially with staggered dates and rates, depending on the product.

Jack Shinder, CEO of Ottawa-based company Ambico, worries how tariffs could impact his American customers. Schinder's company makes specialized doors, frames and windows for clients that include the U.S. military.

"It's a serious problem," he said. "A 25 per cent add to our sale price is going to really cut into our ability to sell in this market. So I'm very concerned about what's being proposed."

Ambico CEO Jack Shinder has been bracing his Gloucester company for American tariffs.

Shinder said he also thinks provincial and federal governments should step in to help businesses affected by the tariffs.

"It's a way for us to protect jobs in Ottawa and across the country, and I think to not commence a program like that would be very short sighted," he said.

Municipalities react

Corinna Smith-Gatcke, warden of the United Counties of Leeds and Grenville, said the tariffs would impact everything from health care to the food industry. She said a lot of cross-border business happens in the counties, as it is home to two border crossings — the Ogdensburg-Prescott International Bridge and the Thousand Islands Bridge.

Man starring forward
Cornwall Mayor Justin Towndale says tariffs could have a major impact on business in the port city. (Felix Desroches/CBC))

"It is just as devastating for Canadians as it is for Americans, and I really struggle to understand the real value that President Trump finds in doing this exercise," she said.

Cornwall Mayor Justin Towndale also worries about how tariffs could impact the local economy, as companies like Leclerc Foods and Laminacorr Industries Inc. have facilities in the city and sell exports to the U.S.

"We could see an impact where production is reduced with our Canadian companies, some of which are family-owned, which could result in layoffs," he said.

A man in a collared shirt and jacket sits in front of a poster that reads "Canadian Federation of Independent Business."
Dan Kelly, president of the Canadian Federation of Independent Business, urges caution in applying retaliatory tariffs. (CBC)

Dan Kelly, president of the Canadian Federation of Independent Business, said he worries the tariffs could lead to a "medium-sized recession," which could then lead to a rise in unemployment.

Kelly also warned of the effects of any retaliatory tariffs enacted by the Canadian government.

"It's like chemotherapy, it basically poisons ourselves in order to try to fight the battle," Kelly said. "That's not a good thing."

With files from CBC's Emma Weller and Radio-Canada's Frédéric Pepin