As Canada faces 50 per cent U.S. tariffs on a wide range of products, New Brunswick Premier Susan Holt is willing to use the tools at her province’s disposal to help make a deal and avoid additional tariffs.
“They hurt our economy, they make life more expensive for everyone,” she said.
“New Brunswick is willing to do whatever it takes to help Canada get the deal.”
That includes potentially using New Brunswick energy exported to New England in the negotiations.
“We have to be very strategic about how we use the leverage that we have. But I think one of my colleagues around the table used the quote, you need to walk softly and carry a big stick,” she said.
Holt added that the province may not go ahead with anything on that front, but knowing it’s there helps.
The threatened tariffs and duties impact Canadian products ranging from alcohol to electronics to molasses.
It will also impact the already struggling softwood lumber sector.
Holt is estimating the tariffs will affect $112 million in New Brunswick products, or 0.8 per cent of provincial exports to the U.S.
“Any dollar is not good. In some cases this means, I think, to one of our entrepreneurs, a $44-million impact in the cardboard and box making space,” she said.
University of New Brunswick associate law professor Maria Panezi said it’s risky to threaten the use of energy when it’s not otherwise impacted, and when the tariffs are not guaranteed.
“I think it’s a good idea to walk carefully when you try to redirect as a way to force the hand of a trading partner,” she said.
She’s not alone. Rhonda Tulk-Lane, president and CEO of the Atlantic Chamber of Commerce, is hoping the federal government avoids retaliation and a trade war.
“There’s decades and decades of research that show that no one wins when tariffs are slapped on,” she said.
Panezi argues it’s in the United States’ best interest to negotiate a deal with Canada.
“The two countries are integrated and the U.S. is also very much trade exposed,” she said.
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