OLDS — Tariffs threatened and/or imposed by the U.S. could hurt local businesses and workers, says Olds & District Chamber of Commerce president Doug Rieberger.
They could hurt Rieberger’s own business: Ultimate Safety Alberta Ltd., he says.
Rieberger told the Albertan that just the threat of tariffs is a double whammy for local businesses.
It creates downward pressure on the Canadian dollar, and the tariffs, which are basically a tax on exported and imported goods, increase the cost of those goods.
“A lot of goods that are bought, even if they don't come directly from the U.S., they come from different areas, and having pressure on our dollar makes it harder for us to purchase those products, costs us more just to purchase it,” he said.
Rieberger called tariffs – repeatedly threatened, then postponed by U.S. President Donald Trump “a moving target.”
“That's the biggest thing about the Canadian dollar. It is a direct thing, because uncertainty the loonie doesn't like,” he said.
In mid-March, Trump imposed 25 per cent tariffs on all Canadian steel and aluminum products. Rieberger was asked if those tariffs affect businesses in Olds and area.
“Honestly, name just about any of them,” he said, noting that for example, in his own business, fire extinguisher shells are made of aluminum and steel.
“The shells are produced in the states, and then they come up here to be filled,” he said.
“So we send our steel aluminum down to the states, they make the shells, and then ship them back up here for us to utilize. So that's going to be a direct cost increase to my business.”
Rieberger said the tariffs could not only hurt businesses, but also their employees.
If those employees are laid off due to tariffs and thus have less purchasing power, they’ll spend less at local businesses and that in turn could further hurt the Olds and area economy.
Rieberger is also worried about how looming agricultural tariffs will affect the business community.
The U.S. is imposing a 25 per cent tariff on agricultural imports from Canada.
Also, on March 20, China imposed tariffs on Canadian canola and pea products in retaliation for a 100 per cent tariff Canada levied last year on Chinese-made electrical vehicles.
“When they start affecting us, well, that that could be where now we have to look at other markets to send our agricultural products out to, as opposed to just the U.S.,” Rieberger said.
“The big thing with all of this is as a business community is being resilient and looking at the opportunities being able to migrate through the different stops and (starts) that we're going to have with tariffs and costs.”
