Walk onto the manufacturing floor at JessEm Tool Company in Moncton and you will immediately spot a giant Canadian flag hanging from the rafters. Owner Darrin Smith proudly displays it inside his 80,000 square foot facility. He considers himself a patriotic Canadian. However, the current trade dispute with the United States forces him to make difficult decisions about the future of his business.

Rising Costs Eat Into Profits

The company designs and manufactures woodworking tools for casual and professional woodworkers. They employ about 70 people. While direct tariffs have not hit the company yet, material costs are skyrocketing.

“Aluminum is double the price, brass about the same,” Smith told CTV News Atlantic. “I’d say my profits are down 50 percent, but we’re still profitable so hopefully we can stay in Canada.”

The Pressure to Relocate

Smith moved JessEm from Ontario to Moncton five years ago. He sells products globally, but the United States buys roughly 85 percent of everything built in the Moncton facility.

U.S. President Donald Trump recently encouraged Canadian companies to move their operations south to avoid tariffs. This puts immense pressure on business owners like Smith.

“If they put a tariff on me, I’m done,” Smith said. “If my products got tariffed, I’d be shut down. Then I’d have to make some quick decisions.”

Smith noted that several U.S. states offer massive financial incentives to relocate. He mentioned strong connections in West Virginia and Ohio. Both states have deep pockets and make moving financially appealing.

Frustration with Canadian Leadership

Smith is currently building his dream home outside Moncton and expecting his eighth grandchild. He wants to stay in New Brunswick. His children mostly run the business now, and he receives offers to sell the company during this turbulent period.

He expresses deep frustration with how Canada handles the trade dispute. He specifically criticizes Prime Minister Mark Carney and the aggressive political stance taken by the federal government.

“I think elbows up is pretty silly to be honest with you,” Smith said. “I don’t think we should be picking a fight with them though. I don’t know if it’s a fight we can win, but we’ll find out.”

Frequently Asked Questions

What does JessEm Tool Company manufacture?

The company designs and manufactures woodworking tools for both casual and professional woodworkers.

Why are the company profits down?

Profits dropped by 50 percent because the cost of raw materials like aluminum and brass doubled.

Will the company move to the United States?

Owner Darrin Smith wants to keep the business in Moncton. However, he stated that if the U.S. places direct tariffs on his products, he will shut down or relocate.