U.S. Tariff Threats Continue to Create Uncertainty

A partner with Polar Pork says, although U.S. President Donald Trump's threat to impose 35 percent tariffs on products imported from Canada exclude those covered by the Canada U.S. Mexico Agreement, the situation continues to create uncertainty. U.S. President Donald Trump has threatened to impose 35 per cent tariffs if Canada doesn’t complete a trade deal by August 1st.

Florian Possberg, a partner with Polar Pork says, while those duties would not apply to goods compliant with the Canada U.S. Mexico Agreement, there is a lot of trade that Canada does with the U.S. that would attract the 35 percent tariff.

Quote-Florian Possberg-Polar Pork:

A 35 percent tariff for product going to the U.S. is a really big deal quite frankly but there are some exclusions, specifically items that are included in CUSMA and are trade compliant don't attract the 35 percent tariff. The pigs that we export to the United States, they would not attract the tariff as we understand it and I think that includes energy and things like potash.

It doesn’t sound like the 35 percent tariff is on that. Because a lot of our trade is compliant already and so we avoid that 35 percent tariff, it's not as pressing an issue as blanket coverage of tariffs that were anticipated in the earlier days so that's taken a bit of heat off of our particular industry. There are certainly industries that are really going to be impacted so we'll wait and see if this comes to be or if this is kind of a bomb thrown out there to get our attention so that the things they really want to negotiate will be negotiated.

Possberg says we've dealing with the tariff issue since Donald trump was elected, facing hot and cold periods, and it looks like we're getting into another hot period and sparks could fly.