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It is not easy navigating the ups and downs of an ongoing trade war between Canada and the U.S., and on Tuesday some companies in Saskatchewan were faring better than others.
Canada’s latest counter-tariffs took effect today in response to U.S. President Donald Trump’s latest 50 per cent U.S. tariffs on Canadian products. Ottawa says the measures match the U.S. tariffs dollar-for-dollar, targeting $27.6 billion worth of American goods.
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The addition of new and retalitory tariffs creates uncertainly for Saskatchewan businesses, employees and their customers, who buy the products produced in the province.
Degelman Industries outside Regina is in the unique position of having manufacturing plants in the province and in North Dakota, so has pivoted what parts get made where.
“Everybody gets nervous when there’s things that are happening that are out of their control. We’ve got great customers and relations in the U.S. and we will continue that.
“We’ve got great staff in the U.S., great staff in Canada and customers as well, so our procurement team works hard to get the best price for each side of the border.
“Like our steel — we buy as much in Canada because it makes sense. And our facility in the U.S. buys U.S. and it’s whatever makes economic sense,” President and CEO Blair Favel explained.
Blair Flavel, the CEO of Degelman Industries, stands in a company warehouse in northern Regina. (Gillian Massie/980 CJME)
Degelman Industries, a farm and industrial manufacturing company outside Regina, is benefiting from federal government money to ensure Prairie manufacturers’ supply chains aren’t too impacted by tariffs.
Degelman does a lot of business with the U.S. — about 45-50 per cent of sales go across the border — which is why the company is looking to other markets.
“We’re constantly looking at new markets and developing overseas. Australia is a good market for us because it’s very similar farming. hen we get into something new we do it for the long haul, we don’t want to do knee-jerk reactions on anything, it hurts everybody.
“We’ve been through lots in our 64 years in business, we’ve dealt with droughts and lots of economic issues. We’re here for the long run, so it’s business as usual for us, Favel said.
Favel is hoping a deal is reached or a free trade agreement is found — the best scenario for all involved in his industry.
Allan Wiens, the CEO of SeedMaster, said the company will face harships due to the federal government’s counter-tariffs. (Gillian Massie/980 CJME)
It is the uncertainty that is causing the most difficulty for companies like Degelman and SeedMaster, which also manufacturers agricultural machinery outside Regina.
“Any time there’s trade talks or negotiations like this, there’s uncertainty in our market, and our customers are feeling that.
“In agriculture we know it’s going to come back because people have to eat and farmers have to farm, and eventually you need that equipment, but if it’s an investment that they’re not willing to make when there’s so much uncertainty in the market,” said Allan Wiens, CEO of SeedMaster.
“I’ve had better nights of sleep, let’s put it that way. We have a limited market into the U.S. and it certainly slowed with all the tariffs that we’ve been dealing with.
“It’s not a huge part of our market, but it’s impactful on our supply chain. I would say maybe 30 to 30 per cent of our product is coming in directly from the U.S. and that’s all going to be subject to this tariff retaliation.”
— with files from 980 CJME’s Gillian Massie
Wild Turkey bourbon sampling bottles. Saskatchewan implemented a 50 per cent fee on American alcohol on Sept. 8.(THE CANADIAN PRESS/AP-Bruce Schreiner)
Saskatchewan adds tax to American booze
Saskatchewan entered the Canada-U.S. trade war Tuesday, slapping a retaliatory tax on American booze, with Premier Scott Moe saying the move is regrettable but necessary.
“Saskatchewan didn’t ask for this trade fight, but we will stand up for our people and industries,” Moe said in a statement Tuesday.
He said it was necessary to respond to what he called “unjustified tariffs” from the United States.
Moe previously announced his province would implement a 50 per cent fee on American alcohol when Canada’s reciprocal tariffs take effect.
Moe also said both countries must remember that tariffs and counter-tariffs increase costs for businesses and consumers on both sides of the border. He urged negotiators for both countries to return to the table to get the best deal.
In Saskatchewan, any U.S.-produced alcohol purchased through the Saskatchewan Liquor and Gaming Authority’s online ordering system, used by retailers across the province, is being hit by the levy.
— The Canadian Press
Saskatoon’s Savor Supermarket and Halal Meat owner, Amjad Rafiquie, said the cost of running his business is going up – from utility bills to taxes. (Mia Holowaychuk/650 CKOM)
Retail business and its customers feeling the pinch
A Saskatoon grocery store owner says the new tariffs are adding on another cost that he cannot pass on to customers.
Savor Supermarket and Halal Meat owner, Amjad Rafiquie, said the cost of running his business is going up — from utility bills to taxes.
“I see what it costs me to get the products on my shelves and keep my doors open.”
Rafiquie said his store sells products that travel from thousands of miles across the world.
“There are fuel charges, transportation charges, and then tariffs and all those things add up,” he said.
On the other hand, Rafiquie said the added costs of products also cause customers to tighten their wallets.
“I see my customers checking their bills at the counter and deciding what they can leave behind, and unfortunately, this is very frequently happening in recent years.”
Rafiquie explained one of the toughest decisions is figuring out how much of those rising costs to absorb, and how much to pass onto customers.
“Customers are already struggling with very low buying power,” he said.
“You have (a) very thin line, you have to work on how you can mitigate both the situations.”
Rafiquie spoke at an NDP event on Tuesday, where MLAs Tajinder Grewal and Kim Breckner called for more provincial support for small businesses.
“We want to see Saskatchewan businesses thrive, but when prices run rampant and consumers get squeezed out of the market, we see small businesses at risk of closing or losing jobs,” Breckner said, noting tariffs threaten to make pressures even worse.
— Mia Holowaychuk, 650 CKOM
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