6 minute read
Tarrifs spur local shopping, Canadian unity
BY KERITH WADDINGTON
Actions speak louder than words, and Island shoppers are letting their wallets do the talking.
With the recent fiscal uncertainty caused by our southern neighbour’s threats of tariffs on Canadian goods, Islanders are seeking out produce and products labelled “Grown in Canada,” “Made in Canada” or “Produced in Canada” more than ever before. And retailers are assisting consumers by identifying local and national products on their shelves with stickers and prominent displays, and by reducing or removing the number of American products.
COMPLEX CHALLENGES
But as Roberta Bowman, executive director of the Ladysmith Chamber of Commerce (LCOC), points out, “It’s important to recognize the complex challenges local business owners face in an evolving economic landscape.”
She gives some examples. “A business may be part of a US franchise but still be locally owned, paying local taxes, employing local workers and sourcing products locally. Some businesses rely on US-sourced inventory that could expire or go to waste, creating financial strain. And others may be bound by distribution agreements with US suppliers that cannot be terminated quickly, limiting their ability to pivot in response to tariffs.”
Indeed, the free trade agreement brokered between our two countries in the mid-80s means that our economies have been intertwined for decades, thus making its separation challenging.
Towards this end, Ladysmith Chamber President Cheri Mactier, Ladysmith Downtown Business Association (LDBA) President Brianne Mactier and Bowman recently met with MP Lisa Marie Barron and MLA Stephanie Higginson to discuss strategies for improving communication with local businesses regarding the potential impact of tariffs.
Both MP Barron and MLA Higginson expressed strong concern and a commitment to working alongside the Chamber and LDBA to advocate for our business community at both the provincial and federal levels. Furthermore, a collective agreement was made to launch a survey of LCOC and LDBA members. Responses will serve as a foundational step in understanding the concerns of local businesses and help guide future advocacy efforts for Ladysmith.
The survey asks businesses if they expect to be impacted by tariffs and, if so, how. Do they anticipate higher costs for supplies and materials or to potential supply chain disruptions? Are they worried about a loss of competitiveness as they increase prices to cover their own costs? Or, if they currently use US suppliers, are there Canadian alternatives to what they need and at a comparable price point and quality?
As Bowman goes on to state, “we must be mindful of these realities and work to support — rather than unintentionally harm — local businesses. A thriving local economy benefits us all, and we need to ensure our advocacy efforts protect and strengthen the business community in Ladysmith.”
CANADIAN-MADE
Some Ladysmith businesses, including Bosley’s and the Mid-Island Co-Op Liquor Store, are helping consumers shop with intention by using stickers or displays to prominently identify Canadian products.
Dustan McKie, manager of Ladysmith Country Grocer, hopes the talk of tariffs are just empty threats. Either way, though, he asserts that “Canadian owned Country Grocer has a long history of promoting local products, and we will continue to do so.”
Two years ago, the store successfully launched the “Island Good” program, which focuses on identifying locally grown or produced items with special signage. But these are exceptional times. In response to the threat of tariffs, McKie is also using stickers and coloured stars to draw people’s attention to Canadian goods. But pivoting a store’s marketing strategy quickly is not easy.
“Unfortunately, most of our flyers are made months in advance, making it hard to respond to such a sudden change in our economy, he said. “But we live on a beautiful island with tons of local produce and local companies. If all that comes from this is that people pay more attention to where their food comes from, that will be a good thing!”
POLITICS OF DISREGARD
Dr. Michael MacKenzie, professor of political studies and Jarislowsky Chair in Trust and Political Leadership at Vancouver Island University, says that what we are seeing from our neighbour to the south is “the politics of disregard.”
“As we have all seen, the president has no regard for others in his personal life, his business dealings or in his politics,” said MacKenzie. “This is absolutely toxic. Most people simply want to live decent lives, support themselves and be free to choose what to do with their lives. Canada is rightly responding with opposition: we must unify and protect ourselves. The president is a threat to democracy in the US and elsewhere.”
MacKenzie believes tariffs would be devastating for the provincial and national economies.
“It’s the uncertainty that matters most,” he said. “Economies don’t thrive in uncertainty. Free trade deals have historically provided a measure of predictability, so companies felt comfortable investing in factories and other infrastructure. In this political climate, that will not happen.”
Re-thinking interprovincial trade barriers would be a good first step, says MacKenzie, who believes that at this moment, “Canada is feeling very alone in the world. We have always counted on our neighbour to the south to come to our aid in times of need, as we have come to theirs. The world has changed, however, and our sovereignty is now threatened. We need to think about how to manage a very different neighbour to the south, whether that be Trump or someone else.”
Perhaps the one consolation in all of this is the fact that similar actions by the US in the past spurred Canada to greater unity than ever before.
MacKenzie provides this quote, from Canadian academic Ronald Watts: “Before Confederation, the Reciprocity Treaty of 1854 rapidly increased trade between the British North American colonies and the United States. Its cancellation in 1866 by the United States, because of the resulting unfavourable trade balance, was one of the many factors motivating Confederation in 1867.”
MacKenzie summarizes the end effect of that historic agreement.
“So, here we have a free trade agreement with the US, negotiated and then cancelled by the US because of a perceived trade imbalance, leading to Canadian unity and ultimately unification,” he said.
“We have been here before.”
