GNCC Tariff Position Statement

Today’s announcement of U.S. tariffs on Canadian exports presents a significant challenge to free trade and shared economic growth. These measures will have far-reaching economic consequences for both countries, underscoring the need for a resilient and forward-thinking approach to trade.

While we remain hopeful that Canada-U.S. trade relations will stabilize at one point, today reinforces the importance of diversifying our markets and expanding global partnerships. Canadian businesses are innovative, adaptable, and competitive, and by exploring new opportunities, we can continue to build a strong and prosperous future—one that is less reliant on any single market.

The GNCC supports the following initiatives for Canada’s future trade and business needs:

1. Canada’s most reliable trading partner is Canada itself. Strengthening interprovincial trade is an opportunity to unlock economic growth, drive innovation, and enhance resilience. Now is the time for provincial governments to prioritize the removal of interprovincial trade barriers. Aligning standards for skilled trades, streamlining inspections, and harmonizing codes and regulations will create a more efficient, competitive, and prosperous national economy. By working together, we can unleash the full potential of Canadian businesses and build a stronger, more self-reliant future.
2. Canada’s strong trading relationship with the United States has shaped our infrastructure to primarily support north-south trade, but enhancing east-west connectivity presents an incredible opportunity for long-term economic growth. Investments in a unified electrical grid, a coast-to-coast pipeline, and transnational rail networks have been proposed, but there is even more potential to unlock. By bringing together a multi-party, multi-disciplinary task force, provincial and federal governments can identify new infrastructure, investment, and policy reforms that will strengthen interprovincial trade, drive economic expansion, and enhance national resilience. Building a stronger, more connected Canada starts now.
3. Canada has a unique opportunity to strengthen its international position as global relations evolve. With shifts in influence, new economic and diplomatic opportunities are emerging, creating space for Canada to expand its leadership on the world stage. The next Government of Canada can take a proactive approach by launching a Royal Commission to explore how we can navigate a changing global landscape while reinforcing our sovereignty, democracy, and economic prosperity. By embracing strategic partnerships and forward-thinking policies, Canada can position itself as a key player in shaping a more stable and prosperous future.
4. Canada has many free trade agreements with other countries, yet they are under-utilized. Businesses will need assistance transitioning to foreign markets. There will be costs involved. The Government of Canada needs to invest more in the Trade Commissioner Service, and make funds available to help Canadian businesses shift their imports and exports away from the United States. Small exporters will particularly benefit from government-led trade missions and lead generation.
5. Businesses challenged by tariffs can adapt with the right support. A well-designed support package would help impacted businesses navigate these changes, strengthen their operations, and explore new markets. Revenues from reciprocal tariffs can be reinvested to support businesses affected by American tariffs, fostering resilience and innovation. As companies evaluate their best path forward, enhancing Canada’s competitiveness through strategic investments, regulatory improvements, and business-friendly policies will ensure that manufacturers and businesses continue to see Canada as the best place to grow and succeed. By focusing on long-term competitiveness, we can turn challenges into opportunities for a stronger, more dynamic economy.

This will cost more than the revenues raised, however, as will new infrastructure investments to enable inter-provincial trade, and likely precludes tax cuts or running a budget surplus.  With the right policy choices, harm can be mitigated.

To date, the GNCC has:

1. convened a cross-border coalition of Chambers of Commerce, including the Hamilton Chamber, the Windsor-Essex Chamber, the Chatham-Kent Chamber, and the Buffalo-Niagara Partnership. This group represents 5,065 organizations on both sides of the border employing 430,000 people, and covers both the busiest passenger and cargo land crossings in the country. We are committed to a unified approach not only with our Canadian peers, but with our American friends in business.
2. launched a Trade & Tariff support page for businesses. This page gathers the latest news and updates on trade and tariffs as well as information and support on navigating them, and general resources and support available to businesses to help them at this uncertain time.
3. continued to deliver timely news through the Daily Update email and web posts, a free resource that offers curated news stories and updates on all the issues affecting Niagara businesses.
4. hosted a podcast with Canadian Chamber of Commerce Dr. Stephen Tapp on the impact of tariffs, and scheduled more information sessions with experts for the near future.

As it always has, the GNCC is here to support Niagara’s businesses and will do everything it can to ensure their success.