‘Peoples’ livelihoods are on the line’ due to tariffs, Thunder Bay business leader says
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The trade war initiated by President Donald Trump between the U.S., Canada and Mexico is evolving, as tit-for-tat tariffs are repeatedly imposed, then suspended or exempted for brief periods.
Reactions from Minnesota’s neighbors to the north are mixed, ranging from frustration to disbelief to anger. Gov. Tim Walz met with Ontario Premier Doug Ford earlier this week, because Canada is a major trade partner for Minnesota.
Thunder Bay, Ontario sits about 40 miles north of the eastern Minnesota border, and businesses there are grappling with how to respond to the tariffs and brace for the economic fallout. Charla Robinson, president of the Thunder Bay Chamber of Commerce, joined Morning Edition host Cathy Wurzer on Thursday to talk about the situation.
Robinson is concerned about damage to both countries’ economies and consumers.
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“This is going to cost businesses on both sides of the border,” she said. “Our economies are so interdependent that when one of us sneezes, the other one gets the cold, and that's kind of what we're seeing here.”
Canada imposed 25 percent tariffs in retaliation to Trump, and stores there have begun pulling American products from shelves.
According to the Canadian Chamber of Commerce, there was $22.2 million in two-way goods trading between Minnesota and Canada last year. The economic impact is estimated to be $1,300 per household in the U.S. and $1,900 Canadian per household in Canada should the trade war continue. Prices will rise on both sides of the border, Robinson said, which would potentially slow the already suffering Canadian economy. Experts project both nations could slip into recession.
Forestry is a massive part of Thunder Bay’s economy, accounting for about 7 percent of its GDP. It’s also a primary private employer, with roughly 7,000 jobs in the area dependent on the forestry sector.
“For folks you know on your side of the border, you probably don't know that the newspaper in Minneapolis actually uses paper from our paper mill,” Robinson said. That’s just “one example of how closely connected our economies are, and how much we are trading back and forth.”
Robinson, too, is anticipating job losses.
More than 28,000 American jobs are supported by Canada’s investment in Minnesota, according to the Canadian Chamber of Commerce.
“Peoples’ livelihoods are on the line,” Robinson said.
Right now, the Thunder Bay Chamber of Commerce is telling local businesses to review their supplier options and cash flows and considering delaying expenses. Robinson said they’re also appealing to the government for more support.