Chamber News & Press Releases
NORTH COUNTRY CHAMBER LAMENTS SCHEDULED IMPOSITION OF U.S. TARIFFS ON CANADA
"The imposition of a broad 25% tariff on Canadian goods is directly harmful bi-nationally, nationally and locally," says Garry Douglas, President of the North Country Chamber of Commerce. "The White House has confirmed they will be imposed on Tuesday, February 4th."
The Chamber estimates the annual economic impact of cross-border economics and investment in all forms surpasses $1 billion (U.S.) just in Clinton County. "It is the single biggest dynamic in the North Country economy."
The Chamber has been highlighting some the very direct impacts on the North Country economy in addition to broader macro impacts bi-nationally, including:
- The Canadian-based manufacturers who are specifically located in the Plattsburgh region for interactions with their Quebec factories and key suppliers.
- The inability of area transportation equipment companies to pass along higher costs as they are locked into multi-year fixed-price contracts.
- At least two major non-Canadian manufacturers in the area who need to source raw materials from Canada. In one case, their supply costs would increase $16 million annually.
- Two manufacturers who have put planned expansions this year on hold due to the uncertainties.
- Local energy cost impacts including the fact that 100% of the region's natural gas comes down by pipeline from Canada; huge quantities of Canadian hydro power help to supply our grid; and most of our heating oil and gas comes from the Port of Montreal.
- Construction material price increases. For example, 100% of our region's asphalt and cement comes from Quebec.
- Higher costs for area dairy farmers for sileage coming from Manitoba.
- Diminished warehouse activity involving U.S. distribution of Canadian goods.
As would be expected many companies have stockpiled components and materials over the last few months ahead of tariffs. "But the realities of space and, in some cases, finances limits that to buying perhaps week, not months," reports Douglas. "And one major manufacturer has had no ability to stockpile at all."
"As we have long pointed out, the U.S. and Canada are not so much in an old-fashioned trade relationship but in a post-trade economic partnership where we make things together and lift both economies up in competition with the world," says Douglas. "Economic integration is deeper and broader across the entire U.S. than most states realize. We just happen to be in a trans-border region where the impacts are especially visible and really felt."
"And don't think this doesn't impact tourism and cross-border shopping," he notes. "It is estimated that these huge tariffs, if not short-lived, could knock at least three points off Canada's GDP, potentially causing a recession. We know a recession undercuts consumer spending and travel, not to mention predictable negativity by many of our neighbors towards spending in the U.S. as a result. And the devaluation of the Loonie."
Douglas says the Chamber will continue to work in collaboration with partners on both sides of the border to encourage a reversal of the tariffs as soon as possible.
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DIVISIONS & RESOURCES OF THE NORTH COUNTRY CHAMBER OF COMMERCE
The North Country Chamber of Commerce serves Clinton, Essex, Franklin, Hamilton and northern Warren Counties in New York State, as well as the Akwesasne Territory and parts of southern Quebec. With more than 4,000 members, it is the largest business and economic development alliance in northern New York and one of the five largest chambers in the state.
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