B.C. plywood manufacturer says it cannot absorb 50% tariff cost as deadline looms
A Richmond plywood manufacturer is concerned about what Wednesday is going to bring for his business.
Canada-U.S. Trade Minister Dominic LeBlanc met with U.S. Trade Representative Jamieson Greer and U.S. Commerce Secretary Howard Lutnick as officials race against the clock to secure a new trade deal before new 50-per-cent tariffs take effect Wednesday.
The duties will impact roughly $28 billion worth of Canadian exports, including 20 per cent of sales at Richmond Plywood, where they produce a lot of high-end product.
“A 50 per cent tariff is not a margin we can absorb, nor is it something U.S. customers will be willing to pay,” Bhavjit Thandi, CFO of Richmond Plywood, said.
Prime Minister Mark Carney was in Newfoundland on Monday and says he expects to speak with U.S. President Donald Trump before Wednesday’s deadline
He wasn’t saying much else.
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“We’ll have opportunities over the next 48 hours to discuss that in more detail as the negotiations go forward; I think that’s the best forum,” he said.
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Canada-US trade talks continue as 50% tariffs deadline nears
David Eby’s government wasn’t commenting on the trade talks Monday.
They don’t have much of a line of sight into what’s going on in Washington, but if those new tariffs are imposed, B.C. will feel the pain.
“Our estimate is that B.C. has about 13 per cent in terms of the U.S. share of those exports that take a hit and this is a little bit higher than Ontario and Quebec,” Brian Yu, associate vice president and chief economist with Central 1 Credit Union, said.
So far, the premier is reluctant to make any concessions such as returning U.S. alcohol to B.C. shelves without tariff relief for key industries such as forestry.
But discussing softwood lumber
“The softwood lumber sector is bigger than auto parts and steel combined in terms of the Canadian economy and it needs to be front and centre at the table,” Eby said on Friday.
Despite the impasse, there’s hope the new 50-per-cent U.S. tariffs will be delayed or scrapped, but for businesses watching as the deadline nears, negotiators are cutting it awfully close for comfort.
Source: globalnews.ca
