WELLINGTON COUNTY – The on-again, off-again tariffs imposed on Canada by the United States have local manufacturers reeling as they try to digest the tariffs and figure out how to fortify against them.
The U.S. has imposed 25% tariffs on Canadian steel and aluminum and Canada retaliated with 25% tariffs on $30 billion worth of goods imported from the States.
Other threatened dates have come and gone, but April 2 is looming.
That’s when U.S. President Donald Trump has threatened to impose 25% tariffs on auto, semiconductor, pharmaceutical and lumber imports from Canada.
And Canada is preparing to add new tariffs on American goods on April 13.
It’s caused chaos, consternation and concern for local businesses, although Phil Greenway might be breathing a little easier than most manufacturers in Wellington County.
His firm, Stirling Marathon, doesn’t do a lot of cross-border trade with the U.S. and imports product from China.
So, tariffs imposed by the U.S. are not really affecting the business.
“But they will affect consumer spending and that will eventually affect us too,” said Greenway, vice president of the Elora-based manufacturing plant, in a phone interview.
“And we purchase in U.S. dollars. If the economy tanks, that will have an impact. We’re watching very closely.”
Stirling Marathon sells home appliances under the Marathon and Epic brand names – fridges, freezers, stoves and bar fridges that are imported from China and other parts of Asia and distributed across the country.
This year the company launched the made-in-Elora Stirling brand, and these products are now hitting retail stores. Information about the new line can be found on the company’s website.
Supply chain issues that came to light during COVID-19 lockdowns convinced the company to start manufacturing in-house.
That proved to be prescient. It also proved to be good timing.
The buy-Canadian movement that’s sweeping the nation in the face of tariffs and threats of annexation has collected Stirling Marathon with it, Greenway said.
“We’re seeing an influx in demand for our made-in-Canada product,” Greenway said. “The timing worked out and the appetite is there.”
Greenway said the company is pushing its new line on Facebook and other social media and is listed on some Made-in-Canada websites.
Stirling Marathon sources its steel in Ontario, then “bend, punch and laser” it at the factory in Elora. Glass and wood is sourced even closer to home, Greenway said – about an hour’s drive away.
Greenway said since Trump started tariff talk in February, the company has been getting a lot of pre-orders, which is keeping its 40 or so employees busy.
The company started in Guelph in 2018, moved to Elora in 2021 and was considering expansion into American markets earlier this year, until Trump started with the tariff talk.
“We put a pause on that,” Greenway said. “We’re looking at other markets now and at strengthening our Canadian market.
“It’s exciting to see Canadians rally around the business community. That’s an unexpected beneficial outcome.”
Wait and see
Brent Renton, president of Wellington Perforated in Fergus, is taking a wait-and-see approach.
His company fabricates and sells products made from perforated metal that are used in everything from architecture to agriculture to the food industry.
The product is sourced in Canada, he said, and 99 per cent of the company’s direct sales are within Canada.
So while it is not bullet proof, it is somewhat cushioned from the blow of tariffs, he said.
“We don’t sell a lot direct to the U.S., but our customers do,” he said in a phone interview.
“And right now, we’re having a rush. I think a lot of customers want to get their product shipped before they get hit with tariffs.”
Wellington Perforated is also benefitting from the buy-Canadian wave, but that also poses problems in terms of staffing and meeting production deadlines.
Renton said the company would like to hire more employees but hesitates to do so because it’s uncertain how things will shake out.
He doesn’t want to hire and then have to lay-off staff, but at the same time he doesn’t want to overburden the staff he has already with so much overtime.
“Everybody is in the same boat,” he said. “Nobody knows what’s going to happen and nobody wants to do anything too drastic.”
Renton said the firm had planned to add another 8,000 square feet to its Gregson Court location in Fergus and has a building permit in hand.
“But we’re going to wait and see. It’s very serious, this whole thing, and I think there will be Canadian job losses,” he said.
‘So much chaos’
Christina Mann is keeping a close eye on tariffs too.
Mann is manager of economic development for Wellington County and she’s in close contact with all types of businesses in the county.
“I feel a little whiplashed. There’s been so much chaos,” she said in a phone interview.
Mann has been meeting weekly with business partners, support agencies and member municipalities to learn about the impact of the tariffs and local needs as a result.
“We’re trying to figure out the ways to best support them,” she said.
There is now a “tariff support” section on the county’s website with resources, up-to-date information about tariffs, federal and provincial programs, grants and other tools that might help businesses survive.
Mann said this is updated regularly – sometimes multiple times a day as events and announcements are rolled out.
There is also a link to the Wellington County business directory with some 4,200 businesses listed, and links to buy-local programs.
Mann said 14 per cent of local jobs are in manufacturing, making it a significant employment sector, “and it is heavily reliant on U.S. trade. Potentially one in five jobs could be impacted,” she noted.
Auto parts manufacturers are also located in Wellington County and their livelihoods “are intricately linked to the U.S., with some parts crossing the border eight times,” she said. “This is a very tricky one.”
Price increases, job losses
Mann said the trade war with the U.S. will lead to an increase in the cost of living and very likely some job losses.
“You’ll see it at the grocery store first,” she said, but she expects to see prices rise across the board.
That has food banks concerned.
“They are really worried,” Mann said. “They anticipate a rise in need, and there’s already been a rise in need.
“But the biggest thing is the uncertainty and the affect on the economy.
“We need a strong supply chain. We need strong trade partners. This is what we’re hearing.”
On the county’s webpage there is also a link to a survey by the Western Ontario Wardens Caucus (WOWC) that seeks to learn the impact of tariffs on businesses in the area, programs that might help, and initiatives businesses have taken to weather the storm.
Mann said that’s valuable information that will help WOWC understand the challenges businesses are up against and ways local governments can help.
“This is a way to share on-the-ground information,” she said. “We (the county) would also love to hear from them.”
Mann said people who want to support local businesses during the tariff threats can discover programs like Taste Real, which highlights local farms and farm stands.
“But this goes beyond just food,” Mann said.
“Think about the downtowns, think about physical retail, think about donating to food banks if you can.
“These acts show your support too. And there will be an increased need for community supports.”
