'No options' on tariffs without more time, says company importing from U.S.

Anis Heydari · CBC News

· Posted: Apr 18, 2025 4:00 AM EDT | Last Updated: 10 minutes ago

 A programme announced this week to assistance some Canadian businesses faced with costly counter-tariffs mightiness not beryllium capable to wholly spare some manufacturing firms from damage, accidental observers. And 1 specified institution successful agrarian Manitoba is already feeling the bite. 

Since the commercialized warfare with the U.S. erupted past month, PhiBer Manufacturing has been paying "tens of thousands of dollars a week" successful tariffs, according to CEO Derek Friesen, for materials required to marque its farm and harvest attraction equipment, arsenic the institution has nary accessible Canadian oregon non-American suppliers.

"It's not thing you tin power precise quickly," said Friesen. His company, based successful Crystal City, Man., has a installation conscionable nether 200 kilometres southwest of Winnipeg. It imports large, integrative h2o tanks and different materiel from the U.S. 

"There's truly lone 1 shaper that is doing that for us," helium told CBC News, and uncovering a Canadian alternative would apt instrumentality much than a year. 

So it was "exciting," Friesen said, erstwhile Ottawa connected Tuesday announced a impermanent exemption of those counter-tariffs for goods utilized in Canadian manufacturing, food and beverage packaging oregon for imports utilized to support wellness care, nationalist information and nationalist security.

The six-month exemption dates back to March 4, according to the Department of Finance. This is successful summation to other programs that could let immoderate businesses to debar tariffs connected a case-by-case basis.

But for PhiBer, helium says, the reprieve whitethorn not beryllium agelong enough, because the halfway occupation remains unless the tariffs are lifted entirely. There's nary mode for him to rapidly and affordably debar tariffed U.S. products portion inactive operating a manufacturing works staffed by Canadians successful agrarian Manitoba.

"There's conscionable nary options for america that I tin bash faster than 14 to 18 months," helium said. "It benignant of opened up a full tin of worms for us."

The institution has already suspended accumulation for a clip and, similar different manufacturers, is still scrambling to marque contingency plans until costs tin beryllium stabilized oregon lowered.

For immoderate importers, the exemption "will marque a immense difference," said Greg Timm, president and CEO of PCB Global Trade Management, a customized brokerage based successful British Columbia.

"We've counted connected our neighbour to the southbound to bargain astir of our products. I deliberation present it's clip that we look successful different places and diversify our markets," helium said. 

Timm says many of his clients were relieved to perceive they person other clip to enactment retired what they'll bash next. 

Even earlier Donald Trump started laying tariffs, helium says the paperwork for importers was "fairly complicated," he said. 

"There are rules of root that person to beryllium proven. There are evaluation processes and formulas that person to beryllium determined... it's not for idiosyncratic that conscionable tries to bash that disconnected the broadside of their table connected a napkin."

The commercialized warfare has made a analyzable concern worse, for 1 of this clients successful particular. 

This lawsuit "made a contractual acquisition for $8 cardinal worthy of instrumentality parts," backmost successful September. "They were contractually obliged to bargain this equipment," helium said. 

"Then the tariff situation hit. They are present trying to fig retired however they are going to wage 25 per cent or $2 million in other duty."

He says Ottawa's exemptions could help, but that national officials would apt inactive expect that institution to effort to find non-tariffed, Canadian products for aboriginal transactions.

It each makes for a cautious concern environment, but Timm expects Canadian companies to yet marque it through.

"Business volition continue, Canadians volition consume. We're going to inactive devour and we're inactive going to bash things. So we conscionable person to find a mode to get done this," helium said.

But for PhiBer, the uncertainty continues to measurement heavy connected the owner's caput — adjacent with a six-month pause.

"Most manufacturers person been beauteous stressed," said Friesen.

"I deliberation what's hard is it's truthful unpredictable."