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B.C. businesses working on ways to combat potential U.S. tariffs: 'There's opportunity in it'

One business leader said U.S. customers he’s talked to don’t like the tariffs and are unclear what the ultimate goal is for Trump

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Lions Gate Fisheries was working Monday to ship as much fish across the U.S. border as possible ahead of tariffs that were supposed to be imposed at midnight.

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The company, like others in B.C. and across Canada, was given a last-minute, one-month reprieve Monday afternoon after Prime Minister Justin Trudeau spoke with U.S. President Donald Trump and outlined a $1.3-billion border security plan.

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Like other B.C. exporters, Lions Gate was trying to find any way it could to combat the 25 per cent tariffs ordered by Trump, which were expected to have a significant effect on B.C.’s export-driven economy.

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Lions Gate Fisheries, which has a large processing plant in Delta and employs 100 people, ships fish to the U.S, including along the West Coast to California and to the East Coast.

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There may be other potential markets for its salmon, halibut and other ground fish, but that is something that can’t be done quickly, said company president Todd Waterfield: “It’s not like you can turn a switch and just do it overnight.”

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Like other B.C. business leaders, Waterfield was watching the political machinations closely and had taken some hope in the fact that Mexico and the U.S. agreed on the weekend to put off tariffs for one month and that Trump was set speak to Trudeau a second time on Monday.

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“Hopefully, clearer heads will prevail here sooner than later, and these guys will figure out that the tariffs are not a benefit to anybody,” Waterfield said in the morning, before the tariff reprieve was announced.

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Waterfield noted that tariffs are going to mean higher prices for Americans for products like those they ship. He said U.S. customers he’s talked to don’t like the tariffs and, like businesses on this side of the border, are unclear what the ultimate goal is for Trump.

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According to figures from B.C. Statistics, the province shipped $731 million of fish and seafood products to the U.S. in 2023, just part of $30.4 billion in annual exports across the border.

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The next biggest seafood market was mainland China at $397 million, with Hong Kong accounting for another $44 million. B.C. shipped $55 million in seafood to Japan in 2023, and just $5 million to South Korea.

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The U.S. is, by far, the largest export market for B.C., accounting for 54 per cent of cross-border shipments in 2023. China accounted for 14 per cent of exports and Japan 11 per cent.

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B.C. is also a major import market from the U.S.

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The largest export sector to the U.S. from B.C. is energy — including natural gas, coal and electricity — at $8.2 billion.

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Behind energy is the wood products sector, which sends $5.7 billion of lumber, plywood, cedar shakes, logs and other products to the U.S. Another $962 million in pulp-and-paper products are also shipped across the border.

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On Monday, Interfor, a B.C. based lumber producer, said it has been closely monitoring the U.S. tariff issue for some time, and as a diversified North American producer, comes into this new environment in as good a position as anyone in the industry.

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“Our leadership team has been hard at work identifying ways to insulate our company from tariff exposure where possible and put us in the best position to continue to thrive,” said Svetlana Kayumova, Interfor’s vice-president of corporate communications and government relations.

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“We know that there is a housing shortage across North America, and the lumber products we produce are a vital part of the solution.”

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Interfor has mills on both sides of the border.

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B.C. cattle ranchers say they have also been preparing for a potential tariff situation since it was first raised by Trump, which dates to the 2016 U.S. election.

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“We don’t like it. We think it’s a bully tactic. But there’s opportunity in it,” said Kevin Boon, the B.C. Cattleman Association’s general manager.

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Cattle ranchers are part of the agriculture and food sector — which includes fruit and vegetable producers — that shipped $3.5 billion to the U.S. in 2023.

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Both live cattle and packaged beef move both ways across the border, underscoring the intertwined and important trading relationship the two countries have, noted Boon.

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He said tariffs are likely to affect beef costs and consumers on the U.S. side of the border more than Canada, which means beef exports from the U.S. also become more expensive. That means there’s the potential for Canada to increase shipments to other countries and explore new markets, said Boon.

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“We’ve got opportunity to become less dependent on the U.S. overall,” he said.

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ghoekstra@postmedia.com

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x.com/gordon_hoekstra

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TALK TO US ABOUT TARIFFS: Has the news of tariffs changed your buying habits or travel plans? Has it impacted your workplace or business? We want to hear your thoughts on how the U.S. tariffs has impacted your daily life. Sound off in the comments below or email us at vantips@postmedia.com if you’d like to speak with a reporter for a future story.

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