Company claims it needs to make job cuts, restructure business model
US President Donald Trump's threat of imposing a 25% tariff on Canadian goods entering his country is starting to impact business in Canada.
One local business in Quebec has announced it will lay off 115 people in the province, according to a Global News report.
Furniture manufacturer South Shore Furniture is letting go of 97 people at its headquarters and factory in Ste-Croix, southwest of Quebec City, and another 18 people at its operations in the Eastern Townships, according to the report.
About one million Canadians could lose their job because of the trade war that Trump started, and that may even be a “conservative” estimate, according to one expert. And with Canadians expecting job cuts amid the tariffs issue, 80% want the Canadian federal government to support people who would be impacted by job losses, according to a previous report.
South Shore made the decision even though Trump has decided to hold off imposing the tariffs. The tariffs were supposed to take effect Feb. 4, but the US leader agreed to give Canada a 30-day reprieve.
Despite the temporary truce, the uncertainty around Trump’s motives has significantly affected South Shore’s sales, which ships about 70% of its products to the US, according to the Global News report.
In response to potential tariffs, major American retailers have increased their imports from Asia instead of Quebec, and this is harming the company’s business, the furniture manufacturer explained.
Amid the tariffs reprieve, South Shore said it needs to restructure its business model, according to the report.
While Trump agreed to temporarily hold off imposing tariffs on Canadian goods, he has said he plans to introduce a 25% tax on all global steel and aluminum imports to the US – including from Canada – beginning March 12.
Following that announcement, Prime Minister Justine Trudeau indicated that Canada is ready to retaliate against the new tariffs.
All 13 premiers of Canada have visited Washington DC to discuss with the US government the issue around tariffs.
On Wednesday afternoon, the premiers secured a last-minute meeting with senior Trump advisers after spending the day sitting down with US lawmakers, according to a BBC report.
"We had a very constructive conversation," Ontario Premier Doug Ford said, according to the report.
British Columbia Premier David Eby said White House advisers "urged us to take the president at his word" on Trump's stated reasons for the tariffs, such as border security and ensuring the US is not taken advantage of in trade relationships.
"There were some very frank moments across the table," he said.
The ministers intended to meet with U.S. decision makers and influencers to continue efforts to de-escalate tensions between the two countries.
“Our economies are deeply connected, supporting workers and businesses on both sides of the border in sectors such as energy, seafood, forestry, agriculture and aquaculture, among others. We are heading to Washington to stress how this partnership benefits both of our economies and our communities,” said New Brunswick Premier Susan Holt prior to the premiers’ trip to Washington DC.
Amid the ongoing tariffs issue, one expert is calling on Canadian employers to make changes to their approach to the supply chain. Every Canadian organization affected needs to be building resiliency and agility right now, said Alain Sawaya, National Leader of KPMG in Canada's Supply Chain practice, that includes “looking holistically at their supply chain strategy and assessing their operating risks and contractual obligations – and alternatives – in this new trade environment."
