{"id":133193,"date":"2025-08-01T23:07:00","date_gmt":"2025-08-01T23:07:00","guid":{"rendered":"https:\/\/interior-news.com\/2025\/08\/01\/inside-the-tariffs-what-trumps-latest-moves-mean-for-bc-businesses\/"},"modified":"2025-08-01T23:07:00","modified_gmt":"2025-08-01T23:07:00","slug":"inside-the-tariffs-what-trumps-latest-moves-mean-for-bc-businesses","status":"publish","type":"post","link":"https:\/\/interior-news.com\/2025\/08\/01\/inside-the-tariffs-what-trumps-latest-moves-mean-for-bc-businesses\/","title":{"rendered":"Inside the tariffs: what Trump&#8217;s latest moves mean for B.C. businesses"},"content":{"rendered":"<p>The threat of tariffs on Canadian goods being shipped to the United States began almost immediately after&nbsp;Donald Trump was re-elected president in November.<\/p>\n<p>&quot;Tariffs is the most beautiful word to me in the dictionary,&quot; he&nbsp;said&nbsp;at his Jan. 20 inauguration ceremony.<\/p>\n<p>The president has slowly ratcheted&nbsp;rates up since, and on Thursday, July 31, he upped the rate on Canadian imports&nbsp;from 25 to 35 per cent. Canadian steel and aluminum continue to be subject to tariffs of 50 per cent.&nbsp;<\/p>\n<p>Because&nbsp;of modern free trade agreements &mdash; and a lack of consistency and detail from the president&nbsp;&mdash; the impact remains uncertain and unpredictable&nbsp;for many people in B.C.<\/p>\n<p>Evolving deadlines and meandering social media posts from Trump&nbsp;only make&nbsp;it more confusing.<\/p>\n<blockquote cite=\"https:\/\/www.tiktok.com\/@todayinbc\/video\/7533403736903830790\" class=\"tiktok-embed\" data-video-id=\"7533403736903830790\" style=\"max-width: 605px;min-width: 325px;\">\n<section><a href=\"https:\/\/www.tiktok.com\/@todayinbc?refer=embed\" target=\"_blank\" title=\"@todayinbc\">@todayinbc<\/a> BC Legislative Correspondent Mark Page dives into the growing complexity of Donald Trump&rsquo;s trade war, explaining how new tariff deadlines, industry carve-outs, and Canada&rsquo;s CUSMA obligations are shaping cross-border trade. With most Canadian exporters facing a paperwork scramble to prove compliance, the stakes are high as Canada and the U.S. work to strike a deal before tariffs hit. Mark unpacks what it all means for businesses, consumers, and the future of North American trade. <a href=\"https:\/\/www.tiktok.com\/tag\/trumptradewar?refer=embed\" target=\"_blank\" title=\"trumptradewar\">#TrumpTradeWar<\/a> <a href=\"https:\/\/www.tiktok.com\/tag\/cusma?refer=embed\" target=\"_blank\" title=\"cusma\">#CUSMA<\/a> <a href=\"https:\/\/www.tiktok.com\/tag\/tariffdeadline?refer=embed\" target=\"_blank\" title=\"tariffdeadline\">#TariffDeadline<\/a> <a href=\"https:\/\/www.tiktok.com\/tag\/canadaustrade?refer=embed\" target=\"_blank\" title=\"canadaustrade\">#CanadaUSTrade<\/a> <a href=\"https:\/\/www.tiktok.com\/tag\/markpage?refer=embed\" target=\"_blank\" title=\"markpage\">#MarkPage<\/a> <a href=\"https:\/\/www.tiktok.com\/tag\/blackpressmedia?refer=embed\" target=\"_blank\" title=\"blackpressmedia\">#BlackPressMedia<\/a> <a href=\"https:\/\/www.tiktok.com\/tag\/tradepolicy?refer=embed\" target=\"_blank\" title=\"tradepolicy\">#TradePolicy<\/a> <a href=\"https:\/\/www.tiktok.com\/tag\/northamericantrade?refer=embed\" target=\"_blank\" title=\"northamericantrade\">#NorthAmericanTrade<\/a> <a href=\"https:\/\/www.tiktok.com\/tag\/exportcompliance?refer=embed\" target=\"_blank\" title=\"exportcompliance\">#ExportCompliance<\/a> <a href=\"https:\/\/www.tiktok.com\/tag\/businessnews?refer=embed\" target=\"_blank\" title=\"businessnews\">#BusinessNews<\/a> <a href=\"https:\/\/www.tiktok.com\/tag\/automotive?refer=embed\" target=\"_blank\" title=\"automotive\">#automotive<\/a> <a href=\"https:\/\/www.tiktok.com\/tag\/steel?refer=embed\" target=\"_blank\" title=\"steel\">#steel<\/a> <a href=\"https:\/\/www.tiktok.com\/tag\/todayinbc?refer=embed\" target=\"_blank\" title=\"todayinbc\">#todayinbc<\/a> <a href=\"https:\/\/www.tiktok.com\/tag\/bcnews?refer=embed\" target=\"_blank\" title=\"bcnews\">#bcnews<\/a> <a href=\"https:\/\/www.tiktok.com\/music\/original-sound-Today-In-BC-7533403787004758789?refer=embed\" target=\"_blank\" title=\"\u266c original sound  - Today In BC\">\u266c original sound &#8211; Today In BC<\/a><\/section>\n<\/blockquote>\n<p><script async src=\"https:\/\/www.tiktok.com\/embed.js\"><\/script><\/p>\n<p>To help break&nbsp;this down&nbsp;and try to figure out&nbsp;what the potential endgame is, Black Press spoke to a business professor, a political science professor,&nbsp;a representative for manufacturers and exporters and&nbsp;the owner of an impacted business.<\/p>\n<p>These experts say&nbsp;Canadian businesses are at least&nbsp;somewhat protected from tariffs by previous trade agreements, which Trump has said he will honour. They also say Canada is in a position of strength, and there is no reason to rush negotiations.<\/p>\n<p>But in the end,&nbsp;Canada will most likely&nbsp;be forced to&nbsp;offer some sort of concession that the president can use to claim victory.<\/p>\n<p>And one thing is now clear to Canadians and the rest of the world: the era of global trade liberalization is over.&nbsp;<\/p>\n<p>&quot;It&#39;s never going to be the same again,&quot; said Andrew Wynn-Williams, B.C. divisional vice-president of&nbsp;Canadian Manufacturers and Exporters, an industry association representing small and mid-size&nbsp;businesses.<\/p>\n<p>Nevertheless, Canada is in a better situation than many other countries. Although it is one of the most dependent countries in the world&nbsp;on the U.S. for trade,&nbsp;many Canadian products will be exempt from the new tariffs if they&nbsp;comply with&nbsp;the requirements of Canada&#39;s 20018 trade deal with the U.S.<\/p>\n<p>That is, so long as&nbsp;proper&nbsp;paperwork is filed with customs agents at the border. And issues&nbsp;still arise for companies that source components outside Canada, and assemble or repackage them for sale in&nbsp;the U.S.<\/p>\n<p>Coquitlam&#39;s Ampco&nbsp;manufacturing is one of these companies. Owner&nbsp;Dann Konkin said switching to local&nbsp;sources increases costs, taking a chunk out of profit margins.<\/p>\n<p>&quot;We&#39;re being ground down,&quot; he said.<\/p>\n<p><b>The impact of tariffs<\/b><\/p>\n<p>At the most basic level, a&nbsp;tariff is a tax paid on imports. The general goal is to raise revenue&nbsp;and make things from other countries more expensive, therefore&nbsp;boosting business&nbsp;at home.<\/p>\n<p>These sorts of schemes had&nbsp;gone out of vogue in previous decades, as economists realized&nbsp;that making stuff more expensive&nbsp;is not a great way to boost the economy, especially in a globally connected world. Generally, it is&nbsp;agreed&nbsp;that this extra cost gets passed on to the consumer in the country that enacts the tariff, in this case, America.<\/p>\n<p>Werner Antweiler, an international trade expert at the University of British Columbia&#39;s&nbsp;Sauder School of Business, gave the example of steel. If imported steel becomes more expensive, then U.S. steelmakers will raise prices to match, simply because they can.<\/p>\n<p>&quot;That&#39;s the nature of protectionism,&quot; he said.<\/p>\n<p>The U.S. steel industry can&#39;t simply start making the same types of steel that are imported, either. This would require&nbsp;difficult and time-consuming changes to American steel&nbsp;manufacturing processes.<\/p>\n<p>The result is&nbsp;that prices go up across the board, impacting downstream industries in the U.S. that rely on steel. As a result, the price&nbsp;for finished goods goes up, and&nbsp;sales&nbsp;go&nbsp;down.&nbsp;<\/p>\n<p>&quot;This makes no sense economically,&quot; he said.&nbsp;&quot;This is not a program that will create jobs.&quot;<\/p>\n<p>The inter-connectedness of the American and Canadian economies adds another wrinkle. Wynn-Williams described a situation with&nbsp;car parts that is so complex, it is difficult to understand where the part&nbsp;is actually from.<\/p>\n<p>He gave the example of a piston. It could be made from Canadian aluminum, that is then cast in Michigan, sent to Ontario to be shaped into a piston, shipped to Mexico for finishing, back to Michigan to be put into a powertrain, off to Ontario again for the engine to be put into a vehicle,&nbsp;then shipped back to the U.S. for sale to a consumer.<\/p>\n<p>&quot;A lot of people don&#39;t realize, they think it&#39;s just, &#39;Oh, we&#39;re selling one product to them and they&#39;re selling another product to us,&#39;&quot; Wynn-Williams said.&nbsp;&quot;It&#39;s much more complicated.&quot;<\/p>\n<p>Products like this piston&nbsp;could end up with tariffs levied&nbsp;several times before being shipped off for sale to the public.<\/p>\n<p><strong>CUSMA can only protect some Canadian businesses<\/strong><\/p>\n<p>The Canada, U.S. and Mexico Agreement (CUSMA) was signed in 2018 to replace the North American Free Trade Agreement (NAFTA) and maintain a free trade zone between the three countries.&nbsp;<\/p>\n<p>There are rules companies must follow to ensure their goods comply&nbsp;with this agreement. Depending on the type of product, a certain percentage of its parts must be locally sourced from within North America. Paperwork must be presented at the border to prove where the product is&nbsp;from.<\/p>\n<p>Many large companies with in-house lawyers are easily able to comply with this, and their goods are CUSMA-compliant. But this doesn&#39;t always work for smaller companies.<\/p>\n<p>&quot;Canada&#39;s economy is made up of small and medium-sized enterprises, and so a lot of them don&#39;t do it because it&#39;s expensive,&quot; said&nbsp;Greg Anderson, a political science professor at the University of Alberta and an expert in&nbsp;Canada-U.S. relations.&nbsp;&quot;They don&#39;t have a big&nbsp;general counsel&#39;s office to do all this stuff for them.&quot;<\/p>\n<p>Until Trump enacted the first round of tariffs in the spring, if&nbsp;companies&nbsp;weren&#39;t compliant, the <a href=\"https:\/\/southernagtoday.org\/2025\/04\/03\/understanding-trade-barriers-tariff-and-non-tariff-measures\/\">maximum penalty<\/a> wasn&#39;t too bad&nbsp;&mdash;&nbsp;about 2.5 per cent. This meant many companies would&nbsp;just skip the paperwork&nbsp;and pay the difference.<\/p>\n<p>In April, RBC&nbsp;<a href=\"https:\/\/www.rbc.com\/en\/thought-leadership\/economics\/featured-insights\/cusma-compliance-rush-will-it-shield-canada-from-u-s-tariffs\/?utm_source=business%20in%20vancouver&amp;utm_campaign=business%20in%20vancouver%3A%20outbound&amp;utm_medium=referral\">studied<\/a> this situation, finding that roughly 86 per cent of Canadian exports to the U.S. could be CUSMA-compliant, but only 38 per cent&nbsp;had the proper paperwork filled out to be traded under CUSMA rules.<\/p>\n<p>Antweiler said the share of goods that are CUSMA-compliant&nbsp;is increasing rapidly since Trump announced the first round of tariffs.&nbsp;Wynn-Williams said the Canadian Manufacturers and Exporters organization is working to get&nbsp;businesses help&nbsp;with the paperwork to get into compliance.<\/p>\n<p>But problems still arise for companies&nbsp;like Ampco, which import components and materials from outside North America. Konkin reckons only about half of his exports could be considered CUSMA-compliant, and&nbsp;because each product is different, the&nbsp;paperwork is a huge burden.<\/p>\n<p>Due&nbsp;to the complexity of this process, mistakes happen, costing him money. Sometimes, these are errors made&nbsp;by customs agents at the border. Other times, problems crop&nbsp;up because with large volumes of product,&nbsp;it is&nbsp;difficult&nbsp;just trying to figure out how much is being charged, and for what.<\/p>\n<p>It is all adding up.<\/p>\n<p>Ampco produces&nbsp;rubber mouldings and sensors, some of which are put into American trucks. Sales of those trucks are down, Konkin&nbsp;said, along&nbsp;with his orders.<\/p>\n<p>&quot;They&#39;re paying the tariff for the product to come into their plant, and now they&#39;re trying to sell a truck that has that added to the price,&quot; he said.<\/p>\n<p><strong>Trying to figure out what Trump is after<\/strong><\/p>\n<p>Carney stopped&nbsp;by Ampco&#39;s&nbsp;Coquitlam warehouse a few days before the April&nbsp;election, and&nbsp;Konkin said he had about five minutes with the future prime minister to press his case on tariffs. Carney told him he was going to try to get the &quot;best deal done for&nbsp;everyone in Canada.&quot;<\/p>\n<p>Konkin said that he &quot;absolutely agreed&quot; with&nbsp;this position.<\/p>\n<p>&quot;I think Carney&#39;s gotta play a little hardball here,&quot; he said. Konkin&nbsp;said that he&nbsp;would like to see rates kept to 10 per cent.<\/p>\n<p>While Canada allowed the Aug. 1 deadline to pass without a deal, several other countries, including Japan, South Korea, the U.K. and the European Union, came to terms with Trump.<\/p>\n<p>Each deal is unique, but the common thread is that tariffs were set to about 10 to 15 per cent, and&nbsp;countries had to sweeten the pot&nbsp;by committing to invest in American goods in some other way, such as promising to buy U.S. energy products.<\/p>\n<p>Anderson said this shows just how far Trump is willing to go to get concessions for lower tariffs. In Canada, Trump has justified the tariffs as a response to fentanyl crossing the border into the U.S. He has also pressed Canada to&nbsp;contribute more to defence spending.<\/p>\n<p>&quot;This is a completely different ball of wax, the way Trump thinks about economic arrangements,&quot; Anderson said.<\/p>\n<p>UBC&#39;s Antweiler&nbsp;argues that Carney&nbsp;should play for time and set clear boundaries. Trump probably&nbsp;wants to implement at least some level of tariffs to gain revenue to&nbsp;pay for tax cuts, so zero tariffs is unlikely. At the same time, Canada can also put tariffs on American goods or take other retaliatory measures to get a better deal.<\/p>\n<p>&quot;We have significant strength in these negotiations, and I&#39;m pretty sure Carney&#39;s team will have made it clear that we&#39;re not going to be a complete pushover,&quot; he said.<\/p>\n<p>He&nbsp;also cautions&nbsp;that giving Trump&nbsp;too much might be counterproductive.<\/p>\n<p>&quot;We know Trump is a bully,&quot; Antweiler&nbsp;said. &quot;Once he gets what he wants, he wants more.&quot;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Older trade agreements like CUSMA still stand, but Canadian businesses need to fill out the proper paperwork<\/p>\n","protected":false},"author":130,"featured_media":133197,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7,6,5,28],"tags":[],"class_list":["post-133193","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-regional-news","category-top-news","category-video"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Inside the tariffs: what Trump&#039;s latest moves mean for B.C. businesses - The Interior News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/interior-news.com\/2025\/08\/01\/inside-the-tariffs-what-trumps-latest-moves-mean-for-bc-businesses\/\" \/>\n<meta property=\"og:locale\" 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President Donald Trump and Secretary of Commerce Howard Lutnick unveil the countries listed for \\\"reciprocal\\\" tariffs on Wednesday, April 2, 2025.\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/interior-news.com\/2025\/08\/01\/inside-the-tariffs-what-trumps-latest-moves-mean-for-bc-businesses\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/interior-news.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Inside the tariffs: what Trump&#8217;s latest moves mean for B.C. businesses\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/interior-news.com\/#website\",\"url\":\"https:\/\/interior-news.com\/\",\"name\":\"The Interior 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