‘Menu of options’

The Manitoba government is contemplating a range of potential measures to assist businesses hit by tariff hikes, as companies grapple with falling sales. An initial annual fee of $205.00, plus GST, will be levied for one year, with the price automatically increasing to $233.00, plus GST, every 52 weeks (a 10% discount off the regular annual price of $259.35).

This offer is available to new and qualifying returning subscribers only, and businesses can cancel at any time. During a meeting between the province's U.S. Trade Council and Manitoba's Business Minister Jamie Moses on Monday, it was revealed that tax deferrals and loans are also being considered as part of the "menu of options" for tariff-impacted businesses.

Further details on these measures are expected to be released later in the week, pending a federal announcement of support for affected companies. Around $663 million worth of Manitoba goods are affected by the 50% tariffs, accounting for 5.1% of the province's total U.S. exports. Canada has imposed retaliatory counter-tariffs on U.S. imports, effective September 8, as bilateral trade talks have stalled.

The extent of the impact on Manitoba businesses remains uncertain. Osee Podolsky, the owner of Podolski Honey Farms, a 20-person operation in Ethelbert, is concerned about where his honey, which is shipped to the U.S., will go following the 50% tariffs on raw honey. With 500 to 1,000 honey barrels sent annually and 30 to 40% of orders already shipped, Podolsky fears that a lack of demand and excess inventory could lead to plummeting prices and decreased profitability.

He worries that prolonged tariffs could force beekeepers to abandon the industry and that his U.S. customers may seek alternative producers. In response to the tariffs, Chuck Davidson, president of the Manitoba Chambers of Commerce, urged governments to address internal trade barriers and adopt a tailored approach to support affected businesses, rather than implementing across-the-board measures similar to those during the COVID-19 pandemic.