Cross-border business between the Buffalo Niagara region and Southern Ontario is going to take a big hit when the new Trump-imposed tariffs become official on March 4. That means the 25 percent surcharge will impact everything from building materials, food products, steel, auto parts, and a lengthy list of other products.
What it means is that the cost of goods will rise and make its way back to the everyday consumer.
Dottie Gallagher, Buffalo Niagara Partnership president and CEO, says she has very deep and worrisome concerns.
“We have a very integrated economy, and for years, we've tried very hard as a community to treat the border as a bridge and not a border,” Gallagher said. “This is going to not only be expensive and create uncertainty for manufacturers, but this new tax is also going to be passed down to consumers and in a way that none of us are going to win.”
Late March 3rd, Ontario Premier Doug Ford said he would stop electricity exports from Ontario to New York, Michigan, and Wisconsin, a move that would impact 1.5 million households in the three states.
Consider this: According to the Canadian Consulate, $241 million worth of goods and services each day cross into the U.S. via either the Peace Bridge in Buffalo or Niagara County’s Lewiston-Queenston Bridge. The U.S. Department of Transportation said last year $40 billion worth of goods came from Canada into the region, while local companies sent $44.68 billion worth of goods and services into Canada. The new tariff could translate into $10.1 billion in new charges local businesses face.
All of which is very personal to Rick Smith, Rigidized Metals president. Rigidized is a Buffalo manufacturer of products made from carbon steel and aluminum, where the raw products largely come from Canadian suppliers.
For a small business owner like Smith, the tariffs are almost shackling.
“Even the threat of the tariffs increases prices, and for a country that's looking to limit our inflationary environment, it's not necessarily the right thing to do. It’s not going to be good for most manufacturers,” Smith said.
The rub is, while the tariff issue is big for U.S.-Canada border states and communities, other parts of the country seem less concerned.
“It's already affected the close relationship that Canada and the United States have, especially in the automotive world. The border towns here, like a Buffalo, are going to be affected a lot more than perhaps, the Mississippi's of the world,” Smith said.
Besides the Canadian and Mexican tariffs, Trump has added a 10 percent tariff on products, goods, and services from China bound for the U.S.
