Derek Friesen, the owner of PhiBer Manufacturing Inc. in Manitoba, had previously managed to avoid the impacts of the Canada-U.S. trade conflict on his agricultural equipment manufacturing business. However, the scenario changed with the recent announcement of retaliatory Canadian tariffs on $27.6 billion worth of U.S. goods. PhiBer Manufacturing Inc. specializes in producing agricultural equipment, particularly dash trailers used by large-scale farmers for crop management. These trailers have frames imported from Iowa, but as of September 8, they will be subjected to new retaliatory tariffs, potentially leading to significant price hikes. Friesen expressed concerns about the economic feasibility of these trailers, which constitute a significant portion of his sales, in the coming weeks.

The retaliatory tariffs, ranging from 15 to 50 percent, will affect various U.S. products, including seafood, paper goods, furniture, apparel, tools, and motorcycles. Notably, items made of iron or steel, as well as raw metals, paper products, machinery, and parts, will face the highest tariffs. Bradley Saunders, an economist at Capital Economics, highlighted that the Canadian government strategically selected goods with available domestic alternatives to minimize the impact on Canadian consumers and industries while exerting pressure on American businesses.

While some businesses anticipate challenges due to the tariffs, others like Danby Appliances in Guelph, Ont., see potential benefits. Jim Estill, the owner of Danby Appliances, acknowledged that while some parts will incur higher costs, such as cables for snowplows facing a 15 percent tax, increased tariffs on products like refrigerators could enhance the competitiveness of Canadian-made goods. Despite the potential market share gains, Estill emphasized the overall negative impact of the counter-tariffs, especially if they deter consumers from significant purchases.

Simon Gaudreault, chief economist at the Canadian Federation of Independent Business (CFIB), echoed concerns about the detrimental effects of the retaliatory tariffs on Canadian businesses. Given the two-way trade nature of the economy, Gaudreault warned that these tariffs, alongside previous U.S. export tariffs, could pose a severe threat. He expressed skepticism about the effectiveness of new support programs and emphasized the urgent need for a resolution to the trade conflict.

In response to the escalating trade tensions, the federal government announced a $7.5 billion support package for affected businesses and workers. Despite these measures, Gaudreault criticized the eligibility criteria of past programs and raised doubts about the inclusivity of the new support initiatives. Friesen, echoing sentiments shared by many affected businesses, emphasized the importance of resolving the trade war as the ultimate solution to the challenges faced by Canadian businesses.

This article was sourced from: [CBC](https://www.cbc.ca/news/business/retaliatory-tariffs-biz-reax-9.7320147)