Chamber News
TARIFF RESPONSE-April 2
TARIFF RESPONSE-April 2
On April 2, 2025, U.S. President Donald Trump announced the implementation of new “reciprocal tariffs,” aiming to address trade imbalances by imposing a baseline 10% tariff on all imports into the United States, effective April 5, 2025. Additionally, higher tariffs will be applied to specific countries with which the U.S. has significant trade deficits. For instance, imports from China will face a 34% tariff, the European Union 20%, and the United Kingdom 10%. For now, the list did not include Canada, but businesses should remain prepared and cautious in this uncertain environment.
Potential Impact on Whitby Businesses
As a community with economic ties to international markets, Whitby businesses, particularly those engaged in exporting to the U.S., may experience challenges due to these new tariffs. Industries such as manufacturing and agriculture could be directly affected, leading to increased costs and potential disruptions in trade flows.
Recommendations for Whitby Businesses
To navigate this evolving trade environment, the Whitby Chamber of Commerce advises local businesses to consider the following steps:
- Assess Exposure: Evaluate your current export activities to the U.S. and identify products that may be subject to the new tariffs.
- Diversify Markets: Explore opportunities in other international markets to reduce reliance on U.S. trade. Canada’s free trade agreements with other countries can facilitate this diversification.
- Review Supply Chains: Analyze your supply chain to identify potential cost increases and seek alternative suppliers or materials if necessary.
- Stay Informed: Keep abreast of trade policy developments and seek guidance from trade experts and licensed customs brokers to understand the implications for your business.
- Engage with Government Programs and other Financial Supports: Utilize resources and support offered by federal and provincial programs and other Candidan institutions designed to assist businesses in adapting to trade changes.
- Apply for Remission of Tariffs some businesses may qualify under very specific conditions.
- BDC’s “Pivot to Grow”: $500M in new lending for tariff-impacted companies.
BDC Pivot to Grow - Farm Credit Canada’s Trade Disruption Program: $1B in new financing for agriculture producers.
FCC Canada - EDC’s Working Capital Guarantees: Helps you secure financing from your bank for growth or to weather disruptions.
EDC Working Capital Solutions
The Whitby Chamber of Commerce remains committed to supporting our members through these uncertain times. We encourage businesses to proactively assess their operations and seek strategies to mitigate the impact of these new tariffs. By staying informed and adaptable, our business community can navigate these challenges and continue to thrive.