Steel tariffs hurting more than one-third of Canadian exporters: poll
More than one-third of OTTAWA Canadian exporters say they have been negatively affected by steel and aluminum tariffs that are affecting Canada-u.s. trade, according to a survey by Export Development Canada.
The Ottawa-based Crown corporation said Tuesday that among companies saying they were hit by these tariffs, 19 per cent have in turn raised prices and 18 per cent have found alternate markets and suppliers. And while the signing of the U.s.-mexico-canada Agreement, or USMCA, in September has eased uncertainty, the results of the federal agency’s latest poll show that exporters’ confidence has eroded amid broader global trade tensions such as those between the U.S. and China, said Peter Hall, chief economist at EDC.
Exporters’ expectations have now “come back down to Earth,” said Hall. “Now we’re faced with arguably much more serious global protectionist measures ... A battle between China and the United States where there are some very tangible tariffs in place that are global trade inhibitors,” he said.
The survey showed that overall trade confidence slipped to 73.8 per cent, marking a drop from 76.5 per cent on the previous questionnaire six months earlier amid strong economic activity.
The U.S. and China’s trade war had been escalating until the two economic superpowers reached a truce earlier this month. But, the arrest of a top Chinese technology executive in Vancouver at the request of U.S. authorities may imperil that reprieve.
The federal agency conducted a telephone survey of 1,000 small-, medium- and large-sized Canadian exporters from Oct. 23 to Nov. 13, and found that the signing of the USMCA had a notable impact on their investment plans. About 41 per cent of companies surveyed now say they have increased or are considering increasing investment — more than double the number of firms from six months prior when a continental trade agreement was still in limbo.however, 34 per cent of the exporters said they were hurt by the steel and aluminum tariffs, more than EDC expected, said Hall.