By Ruby Pratka
Local Journalism Initiative
Matthew Long hasn’t gotten much sleep since U.S. president Donald Trump began talking about tariffs on Canadian imports.
Long is the owner of a Knowlton-based trucking company, LJH Trucking, which employs 30 people and has a fleet of 24 trucks. He estimates that about 80 per cent of the company’s business relies on cross-border orders.
“In January and February, I’ve been getting a full night’s sleep maybe every three nights – I’m just exhausted, monitoring the tariff situation,” Long said. “The day before the tariffs were [to have been] put in place, 85 per cent of our workload got cancelled or put on hold. We had trucks and drivers without anywhere to go and clients with loads cancelled. It’s a huge challenge for everyone involved.”
On Feb. 1, U.S. President Donald Trump signed an executive order imposing a 25 per cent tariff on all Canadian products entering the U.S., except for energy imports, which would be subject to a 10 per cent tariff. On Feb. 3, the day before tariffs were to take effect, the imposition of the tariffs was suspended for 30 days, leading Canada to pause its own planned retaliatory tariffs. On March 3, the Trump administration confirmed its intention to impose tariffs; three days later, Trump announced another pause until April 2. As of this writing, separate 25 per cent tariffs on steel and aluminum imports were expected to go into effect March 12. Outgoing federal finance minister Dominic LeBlanc has said Canada plans to introduce retaliatory tariffs on April 2.
Long said the on-again-off-again tariffs have made day-to-day operations and planning for the future more difficult. “Demand was really high in February, because people were trying to get shipments across the border before the deadline. We don’t know how March will play out, but it’s probably going to be the same thing. It’s a logistical nightmare.”
The tariffs have also made him rethink his purchasing plans. He noted that car and truck parts usually cross the U.S.-Canadian border several times during the vehicle manufacturing process. “Tariffs are going to increase the cost of everything, including trucks, but I don’t want to let go of my current truck [orders] because if I do, someone else will grab them,” he said.
“The pressure on our staff and the drivers to get everything done is unjustified – there’s no reason for this to happen,” he added.
Pascal Lafrenière is the president of the Chambre de commerce de Brome-Missisquoi (CCBM). He echoed Long’s observations that the ongoing uncertainty is bad for business, especially in sectors where companies are used to planning weeks and months ahead of time. “We’re in the unknown, and everything is changing so quickly,” Lafrenière said. “If you’re a business, it’s hard to adapt on a dime… but it’s time to rethink our strategies. The link of reliability with the United States is broken.”
Both Long and Lafrenière said they were optimistic that the situation would ultimately be resolved as its negative impacts on both sides of the border became apparent. Lafrenière said the CCI was working with its partners on short- and medium-term solutions, including a local purchasing strategy and ways to connect businesses with emergency funding opportunities such as those announced by the provincial government last week. A spokesperson for Economy Minister Christine Fréchette said the emergency measures – including two loan programs for businesses looking to diversify international partnerships and scale up productivity and a 25 per cent bid penalty for American companies applying for Quebec government contracts – would remain in effect until further notice.
CLD offering support for businesses
In response to the uncertainty, the Centre local de développement (CLD) de Brome-Missisquoi announced plans to put in place a “strategic cell” bringing together experts and economic stakeholders.
“Our advisors actively support businesses so that they can assess their exposure to risks. We encourage them to establish different financial scenarios, contact their suppliers and customers to anticipate the impacts and identify opportunities that could emerge from this situation,” said Marie-Josée Lamothe, director of business services at the CLD. In addition to risk assessment, the CLD offers support to help local businesses review their business model and update their strategic planning, diversify their markets, find local suppliers, scale up productivity, access existing assistance programs and adopt a “Made in Quebec” marketing strategy.
“Some sectors can do well in this context, such as tourism, local [food and agriculture] producers or manufacturers of ecological goods. We are also here to support these companies in their development,” said Lamothe.