Local businesses have already been feeling the effects of Trump’s proposed tariffs even before their implementation.
Joseph Edogbeni, CEO of HEYRU, imports African natural food, health, and cosmetic products, processes them in Winnipeg, and sells them across Canada. He also runs a freight brokerage, helping small businesses with imports and exports. With tariffs looming, he says clients are wary of shipping to the US, and orders from the US for HEYRU products have stopped entirely.
“For my business, in terms of the literal exports I do to the US, I noticed that towards the end of December, I felt some interesting numbers. Since January, with the threat of these tariffs, orders have ceased from the US using the platform that I use,” says Edogbeni. “I have not seen those orders anymore. That has become, like, a standstill.”
A tariff is essentially a sales tax on foreign goods. If you import or buy something from abroad, you’ll have to pay an extra tax when it enters your country. Tariffs on Canada were a threat Trump made long before he was sworn into office. After a month-long pause after discussions with the Canadian government, the Trump administration is moving forward with a 25 per cent tariff on Canadian goods.
Director of Strategic Initiatives at the Winnipeg Chamber of Commerce, Sanjana Vijayann, says these threats have sparked uncertainty within the Chamber and local businesses.
“We know that if these tariffs do move forward, they will increase costs for businesses from manufacturers and retailers, and eventually, they’ll get passed on to consumers as well. So, companies that participate in cross-border trade will be particularly impacted. Over time, these tariffs can reduce consumer purchasing power. It can slow economic growth and it can impact jobs. Tariffs can also ultimately weaken the competitiveness of these businesses and make it harder for businesses to plan for the long term. And so the reality is that tariffs are a lose-lose situation.”
In response to the ongoing tariff uncertainty, Vijayann says supporting local businesses is more important than ever, applauding the provincial government’s Shop Local ad campaign.
“Shopping at local stores, which is what the provincial government is recommending, dining at independent restaurants, and choosing Manitoba-made academy products will all help keep money within our community. Support jobs within our community. But beyond that too, I think other small actions that Winnipeggers can take beyond purchasing are supporting local businesses by sharing their content online, liking things, and leaving a positive review. All of that can actually lead to and create a real difference for small and medium-sized businesses.”
Edogbeni also advocates for shopping locally.
“I’m a big believer in shopping locally and actually set up a store called Love Local Manitoba that is dedicated to promoting and selling Manitoba products.”
As for the efforts of businesses, he notes diversification is key.
“People are getting ready for it, and I’m preparing. I have plans to inquire about shipping times when trying to export to countries like Colombia. These are grain exporters that mostly sell to the US. So they’re beginning to look at other markets outside the US.
From the Chamber’s perspective, Vijayann says the threat of tariffs has highlighted the need for businesses to diversify, especially given the uncertainty surrounding Canada’s relationship with the US. She adds that even if tariffs ease, conversations have begun on interprovincial trade barriers. She explains that the Chamber of Commerce is pushing for these barriers to be reviewed and removed so businesses can thrive.
– Ryan Funk, U Multicultural
