Manitoba Premier Wab Kinew said U.S. President Donald Trump’s 30-day tariff delay is a sign provincial efforts have been effective, as the province pauses plans to stop selling American liquor.
Kinew received the news minutes after announcing new measures to crack down on money laundering at Manitoba casinos in a push to punish those who traffic illicit drugs like fentanyl.
“At the same time, I think it’s very clear that this is very much going to be a situation that continues to play out over the long term. There still is that threat of tariffs in the future,” Kinew said Monday.
Over the weekend, U.S. President Donald Trump said he planned to impose 25 per cent tariffs on most Canadian imports starting on Feb. 4.
Trump has cited illegal fentanyl and migrants crossing our shared border as the driver behind the measure, as well as Canada’s low level of defence spending.
Prime Minister Justin Trudeau retaliated Saturday, revealing he would in turn slap U.S. goods with counter taxes.
And by Monday, Trump issued Canada a 30-day extension, as Trudeau vowed to implement a new $1.3 billion border plan, adding choppers, technology and personnel.
The feds will also appoint a fentanyl czar and launch a joint Canada-U.S. strike force.
Still, Kinew said with the tariff threat looming, more work needs to be done.
“We have a responsibility to continue to take those long-term steps to ensure that our economy is Trump-proof in Manitoba,” he said.
For its part, the Manitoba government introduced retaliatory measures. Kinew said Monday the province is looking for ways to prevent U.S. companies from bidding on provincial contracts.
Cabinet ministers whose portfolios are linked to the economy have been tasked with reviewing the provincial government’s procurement procedures in order to restrict U.S. bids.
This follows Kinew’s direction on Sunday to MBLL to stop the sale of U.S. products across the province—a measure scrapped with news of Trump’s extension.
No winners in a trade war: Manitoba Chambers of Commerce
Still, the weekend’s tariff talks were enough to plunge the Loonie to its lowest point in 20 years, as businesses in this province continued to grapple with the uncertainty.
“In a trade war like this, it’s a lose-lose situation. Businesses on both sides of the border, consumers on both sides of the border are going to lose as a result of this,” Davidson said in an interview with CTV Morning Live Winnipeg.
Meanwhile, Davidson believes the trade war has reinvigorated the shop local movement.
“It’s symbolic. There are certain elements that are not made in Canada, but I think the fact that more, more and more Manitobans and more Canadians are looking at labels is a good thing. I think anything you can do to support some of those local businesses is going to be a positive.”
‘Absolutely have to explore other markets’
Terry Shaw with Canadian Manufacturers and Exporters said investments and hiring are already being paused in his sector—measures that are expected to ramp up if tariffs are implemented.
Roughly 70,000 Manitobans are employed at 1,400 manufacturers in the province. Over half of the goods that the U.S. buys from Canada are intermediate inputs for their manufacturing goods, he said, while 62 per cent of U.S. imports are for Canadian manufacturing inputs.
Finding new trade partners is key during this trade war, he said, and conversations are already happening.
“I don’t think we’ll ever replace the United States. They’re too big. They’re too close, but to mitigate the impacts of being so trade-reliant on them, yeah. We absolutely have to explore other markets and other areas.”
- With files from CTV’s Rachel Lagacé and the Canadian Press
