There was a sense of relief when Darrin Smith got to work Thursday morning.
The owner of JessEm Tools in Moncton, N.B., watched U.S. President Donald Trump’s ‘Liberation Day’ with great interest on Wednesday.
“I was pretty happy we got spared, Canada. I know there’s still some tariffs on aluminum and steel, that will cost a little bit, but I’m glad we were primarily spared,” said Smith.
Trump escalated a global trade war by announcing sweeping reciprocal tariffs on several countries, but not Canada.
However, a 25 per cent tariff on all imported vehicles went into effect Thursday and a 25 per cent tariff on steel and aluminum rolled out last month remains in place.
Smith said 87 per cent of the products manufactured at his woodworking tools and accessories facility in the past three months have been shipped to the U.S.
In late February, Smith told CTV News the uncertainty surrounding tariffs had him considering moving his business to Ohio or Texas.
Now, he’s looking at a big expansion, not relocation.
That’s a relief to his 65 employees.
“It puts everybody in a better mood. It’s better than going the other way,” said Smith. “I feel more at ease.”
Taylor Ford Lincoln general sales manager Corey Stevenson said Trump’s tariffs won’t affect them in the short term because all the vehicles on their lot are at pre-tariff prices.
But eventually the impact of tariffs will be felt through the production system.
“When it does happen, we’re anticipating that it’s only going to affect in the neighbourhood of a couple, two, three thousand dollars. It shouldn’t be a massive price increase,” said Stevenson. “I know there’s a lot of fear out there with consumers and I’d just like to say, it’s not as bad as you think. It’ll be alright. It’s still a good time to buy a vehicle.”
There has been some uncertainty at the Moncton dealership over the past few months.
“Certainly, there’s a lot of trepidation. You hear it with consumers on the floor and with staff. Obviously, we’re trying to find out as much information as we can just like everybody else and we’re quite confident in what’s happening that it’s not as bad as we thought,” said Stevenson. “I think we all got off a little lucky yesterday, so for us it’s going to be business as usual.”
Smith, who has been in the manufacturing business for 30 years, isn’t sure how viable European and Asian countries are as trade partners.
“I think we’re stuck with working with the U.S. and we better learn how to work with them,” said Smith. “That’s the way I feel.”
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