In Surrey, British Columbia, the repercussions of President Donald Trump’s recent tariff decisions are already taking a toll on local businesses. Karim Walji, a partner in AI Industries, a steel fabricating plant, shares his fear of having to reduce his workforce for the first time in eight years. Walji blames Trump’s aggressive trade policies, characterizing them as a reckless power trip aimed at showcasing U.S. strength over its neighbors.
Last week, AI Industries stood as a model of cross-border trade success amidst a trade relationship valued at just under $800 billion each year between the U.S. and Canada. However, things quickly changed when Trump introduced a new 25% tariff on nearly all goods imported from Canada and Mexico. Just two days later, he unexpectedly suspended some of these tariffs for the upcoming month, leaving businesses in a state of confusion and turmoil.
Walji expresses deep concern over the constant threats from Trump and the unpredictability of tariffs, stating they render planning nearly impossible. “Even with the threat of tariffs, material prices have skyrocketed nearly 15% compared to three months ago,” he explained.
The plant itself was bustling during a recent visit, with workers fabricating steel beams for various projects across the border, including a high-rise in Vancouver and an office project in Alaska.
Moreover, Walji pointed out that American companies would also suffer under these tariffs. Specialty steel fabrication necessitates significant investment in costly machinery, many of which are manufactured in the U.S. With the prospect of retaliation from Canada looming, Walji contemplated sourcing new machines from Europe instead of his long-time supplier based in Illinois.
Walji and many Canadian citizens feel insulted by Trump’s derogatory references to Canada as the “51st state” and to its Prime Minister as a mere “governor,” adding yet another layer of tension in this fraught relationship.
Peter Xotta, CEO of the Port of Vancouver, warns that a prolonged trade conflict would be devastating for British Columbia’s economy, which heavily relies on trade with the U.S. He noted that ports currently handle upwards of 160 million tons of cargo annually, where approximately 75% is comprised of bulk commodities.
The sentiment of concern extends beyond business owners like Walji; Vikram Vinayak, a truck driver whose deliveries predominantly hinge on U.S. routes, fears losing substantial working hours as tariffs slow down shipments. His job stability is in jeopardy due to the uncertainty surrounding the tariffs.
Further expressing discontent over the escalating tensions, the province’s premier has decided to ban sales of American liquor brands from states that Trump won in the last election, illustrating the growing backlash against U.S. products in Canada. Darryl Lamb, brand manager at a liquor store in Vancouver, noted the emotional responses from customers over the tariffs and the implications of Trump’s words on their national pride.
Overall, Canadian businesses and citizens alike are feeling the heat from Trump’s trade policies, which they perceive as not only economically harmful but also personally offensive. The intricate trade relationship between Canada and the U.S. now hangs in the balance amid rising tariffs and political tensions.