In this edition:
- Tools, electronics, consumer goods from the U.S. hit with Canadian counter-tariffs
- Shaw Festival sees $768k surplus in 2024
- Healthy Planet expands to Niagara region
- Carney’s win kills Liberals’ much-delayed plan to change capital gains tax
- Wall Street tumbles after Trump escalates his trade war
- Ontario eyes more trade with countries overseas in wake of U.S. tariffs
- Focus on Retail
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Picture credit: Rawf8 / Adobe Stock
Tools, electronics, consumer goods from the U.S. hit with Canadian counter-tariffs
Matching 25 per cent tariffs on $29.8 billion worth of American goods took effect just after midnight in response to U.S. President Donald Trump’s tariffs on steel and aluminum imports.
Canada’s extensive counter-tariff list focuses on American steel and aluminum products, including a wide variety of industrial materials, and is part of a broader counter-tariff package expected to expand to cover $155 billion in goods by the end of the month.
Minister of Innovation, Science and Industry François-Philippe Champagne has directed Industry Canada to prioritize funding of projects that use predominantly Canadian steel and aluminum.
Across the Atlantic, the European Union will raise tariffs on American beef, poultry, motorcycles, bourbon, peanut butter, and jeans.
Photo credit: Shaw Festival
Shaw Festival sees $768k surplus in 2024
In one year, the Shaw Festival has managed to turn a record loss into an unprecedented achievement for the theatre company.
During Friday’s annual meeting, treasurer Greg Price announced the 2024 season’s operating revenue, sitting at $39 million — the Shaw’s largest operating revenue to date.
Picture credit: Healthy Planet
Healthy Planet expands to Niagara region
Healthy Planet is opening its first location in Ontario’s Niagara region.
The health and wellness retailer will open its new store in St. Catharines on April 11.
Picture credit: Vitalii Vodolazskyi / Adobe Stock
Carney’s win kills Liberals’ much-delayed plan to change capital gains tax
Mark Carney’s victory in the Liberal leadership race puts the final nail in the coffin of Ottawa’s controversial plan to hike the inclusion rate on capital gains.
When they tabled their budget last spring, the federal Liberals presented the plan to change capital gains as a way to get wealthy Canadians and corporations to pay more — but the plan has faced a series of delays ever since.
Picture credit: zhu difeng / Adobe Stock
Wall Street tumbles after Trump escalates his trade war; S&P 500 sinks 1.2 per cent, and Dow drops 500
Wall Street’s sell-off is accelerating Thursday after U.S. President Donald Trump upped the stakes in his trade war by threatening huge taxes on European wines and alcohol. Not even a double-shot of good news on the U.S. economy could stop the bleeding.
The S&P 500 was down 1.2% in afternoon trading, caught in a dizzying, battering stretch that’s driven the index roughly 10% below its record, which was set just a few weeks ago. Wall Street calls such steep drops a “correction,” and if the index finishes the day below 5,529, it would be the first for the U.S. stock market since 2023.
Picture credit: nespix / Adobe Stock
Ontario eyes more trade with countries overseas in wake of U.S. tariffs
Ontario is re-examining its trade strategy in the wake of American tariffs on Canadian goods, looking to focus on opening up new markets and attracting more overseas investment once the immediate economic threat passes.
The province does about $500 billion in annual two-way trade with the United States. It’s the largest trading partner for 17 U.S. states and the second-largest to 11 others — statistics Premier Doug Ford would frequently rattle off in the early days of this trade battle.
Focus on Retail
The hidden cost of tariffs that consumers need to understand
Canadian consumers are already paying 25% to 30% more for their groceries since the start of the pandemic. Now, U.S. tariffs and Canada’s retaliatory tariffs will drive prices even higher, making essential goods less affordable and accessible. Retailers and manufacturers don’t want to raise prices—they simply can’t afford to. When prices go up, consumers buy less. Lower sales translate into lower distribution and manufacturing productivity, which raises the cost to produce each unit, cutting into profitability.
It’s unrealistic to expect suppliers—whether national brands or private label brands—to absorb these tariff costs. Tariffs function as taxes, such as GST and retail sales taxes, tariffs should be itemized on receipts, along with other government-imposed fees such as environmental/recycling fees, which are a major driver of consumer packaged goods inflation. Transparency builds trust – providing clarity for consumers and consistency for businesses, especially smaller suppliers and retailers. Our industry needs to regain consumer trust. Tariffs may be temporary, but when consumer trust is lost, it takes years to rebuild.
Through the Daily Updates, the GNCC aims to deliver important business news in a timely manner. We disseminate all news and information we feel will be important to businesses. Inclusion in the Daily Update is not an endorsement by the GNCC.
