As the United States prepares to impose 50 percent tariffs on a wide range of Canadian products, New Brunswick Premier Susan Holt says she is ready to use the province’s energy exports as leverage.
Holt wants to protect the local economy from these new costs. She told CTV News that the province will do whatever it takes to help Canada secure a fair trade deal.
If you live in New Brunswick, these tariffs directly affect your local economy and make everyday items more expensive.
Energy Exports on the Table
New Brunswick exports significant amounts of energy to New England. Holt views this energy supply as a strategic tool in upcoming trade negotiations.
“We have to be very strategic about how we use the leverage that we have,” Holt said. “But I think one of my colleagues around the table used the quote, you need to walk softly and carry a big stick.”
The looming tariffs target Canadian goods ranging from alcohol and electronics to molasses. They also hit the already struggling softwood lumber sector hard. Holt estimates the tariffs affect 112 million dollars in New Brunswick products. This represents 0.8 percent of provincial exports to the US.
“Any dollar is not good,” she said. “In some cases this means, I think, to one of our entrepreneurs, a 44 million dollar impact in the cardboard and box making space.”
Experts Warn Against Trade Wars
While the premier wants to project strength, trade experts urge caution. University of New Brunswick associate law professor Maria Panezi says threatening energy exports carries significant risks.
“I think it is a good idea to walk carefully when you try to redirect as a way to force the hand of a trading partner,” Panezi said.
Panezi notes that the US and Canadian economies are deeply integrated. She argues it remains in the best interest of the United States to negotiate a fair deal with Canada.
Rhonda Tulk Lane, president and CEO of the Atlantic Chamber of Commerce, wants the federal government to avoid retaliation entirely.
“There is decades and decades of research that show that no one wins when tariffs are slapped on,” she said.
Frequently Asked Questions
What products do the new US tariffs affect?
The tariffs impact a wide variety of Canadian exports. In New Brunswick, affected goods include alcohol, electronics, molasses, softwood lumber, and cardboard products.
How much money will these tariffs cost New Brunswick?
Premier Susan Holt estimates the tariffs impact 112 million dollars worth of provincial products. This accounts for roughly 0.8 percent of New Brunswick exports to the United States.
What leverage does New Brunswick have in trade negotiations?
New Brunswick exports a large amount of energy to New England. Provincial leaders view this energy supply as a negotiating tool to avoid additional tariffs.
Does Mdme Holt realize that one of NB’s largest exporters and supporter does business on both sides of our border.
She must want to destroy any and all chances for NB to keep its economic head above water.
She couldn”t have read the headlines months back whereby Saint John in particulat was declared “the most vulnerable and exposed city” to Trumps tariffs in Canada.